ABSTRACT
Trade misinvoicing typically involves deliberately misinforming customs authorities by stating wrong facts in the customs declaration. Volker Nitsch examines various motives for misdeclaration of trade activities and argues that the broad range of incentives to fake customs declarations provides an important challenge for the empirical assessment of the extent of trade misinvoicing. The chapter analyzes the costs and benefits of different empirical approaches to quantifying trade misinvoicing, and it reviews the accuracy and reliability of estimation results reported in the literature.
