# Customs document types

Source: https://developer.avalara.com/products/crossborder/integration-guides/avatax-for-cdit/ocu1973808296387/

Guide: AvaTax Cross-Border (Customs Duty and Import Tax)

# Customs document types

Learn about customs document types used for import VAT and cross-border transactions.

In order to balance ledger entries from your import VAT and cross-border transactions, AvaTax provides `CustomsInvoice` and `CustomsOrder` document types

Customs document types work similarly to Sales document types with the following exceptions:

-   Customs document types apply specifically to products imported into the EU.
-   Customs document types require that you include a `TaxOverride` type of `TaxAmountByTaxType`.

Customs transactions are generally expected to be recorded as they occur. They’re meant to represent the actual fees paid at the time of clearing the border.

There are many reasons why the actual costs may not align exactly with the calculated costs as part of a Sales Invoice. This includes changes to exchange rates, classification discrepancies, and parcels clearing customs on different days under de minimis. Avalara aims to minimize the variance observed, and this starts by creating a Customs Invoice to match the Sales Invoice you committed with each shipped parcel for the order. With this new information, variance can be measured and made visible via reporting.

Tip

-   For returned items, specify a negative currency value and a negative `TaxAmount`.
-   Similarly, for a cross-border return, in most cases you can request a refund from the Customs Authority for the duty and tax paid on the import for that item. The refund request capability varies in implementation from country to country but can result in a refund. In this case, a new Customs document type can be entered with negative currency values and negative TaxAmounts.