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Containing Tariff Evasion

Author

Listed:
  • Anne,Clement Xavier Frederik
  • Chalendard,Cyril Romain
  • Fernandes,Ana Margarida
  • Rijkers,Bob
  • Vicard,Vincent

Abstract

To identify transactions at risk of tariff evasion, this paper matches export transaction data from France with import transaction data from Madagascar using container identifiers. Reporting discrepancies between exporters and importers are prevalent but small, with over two-fifths of importers reporting in a way that increases their tariff liability. Yet, aggregate tariff revenues are 24 percent lower due to discrepancies. These revenue losses are highly concentrated: the top five evaders account for three-quarters of all tariff revenue losses and larger shipments are more at risk of evasion. Tariff enforcement in Madagascar is ineffective and only marginally mitigates revenue losses.

Suggested Citation

  • Anne,Clement Xavier Frederik & Chalendard,Cyril Romain & Fernandes,Ana Margarida & Rijkers,Bob & Vicard,Vincent, 2023. "Containing Tariff Evasion," Policy Research Working Paper Series 10606, The World Bank.
    • Handle: RePEc:wbk:wbrwps:10606
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    References listed on IDEAS

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    1. Sébastien Jean & Cristina Mitaritonna & Antoine Vatan, 2018. "Institutions and Customs Duty Evasion," Working Papers 2018-24, CEPII research center.
    2. Raymond Fisman & Shang-Jin Wei, 2004. "Tax Rates and Tax Evasion: Evidence from "Missing Imports" in China," Journal of Political Economy, University of Chicago Press, vol. 112(2), pages 471-500, April.
    3. C.J. Krizan & James Tybout & Zi Wang & Yingyan Zhao, 2020. "Are Customs Records Consistent Across Countries? Evidence from the U.S. and Colombia," Working Papers 20-11, Center for Economic Studies, U.S. Census Bureau.
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    5. Anthony Shorrocks, 2013. "Decomposition procedures for distributional analysis: a unified framework based on the Shapley value," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 11(1), pages 99-126, March.
    6. Sandra Sequeira, 2016. "Corruption, Trade Costs, and Gains from Tariff Liberalization: Evidence from Southern Africa," American Economic Review, American Economic Association, vol. 106(10), pages 3029-3063, October.
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    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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