By Jaya Ramachandran
GENEVA | NAIROBI (IDN) – A new United Nations report lists China, Germany, India, Italy, Japan, the Netherlands, Spain, Switzerland, Britain and the U.S. among countries that are benefiting from ‘trade misinvoicing’ practised by a large number of Commodity Dependent Developing Countries (CDDCs).
Trade misinvoicing – involving resort to deliberately misreporting the value of a commercial transaction on an invoice submitted to customs – “continues to be used as a key mechanism of capital flight and illicit financial flows from developing countries”, says a study by the Geneva-based UNCTAD, the United Nations Conference on Trade and Development.
Nearly 90 of developing countries are losing commodity export earnings worth billions of dollars in valuable foreign exchange earnings, taxes and income that might otherwise be spent on development. $3.9 trillion is the estimated annual investment required for achieving Sustainable Development Goals by the year 2030 ,