International trade and other sales : custom duty and Shari’ah screening

Fatawa Question

As-Salam Alaykum Wa Rahmatullah Wa Barakatuh Respected Sheikh We hope you and your family are fine with the blessing from Allah SWT. Dear Sheikh, now a day we are in process of exporting some goods to Africa and there African port Authority charge around 15 % of the total value of the good as custom duty. Now to save this duty generally companies make two invoices one for the customer with the correct value and one for the port authority with around only 30 % of the total value. This is a general practice and most of the businesses are doing the same thing. In this regard we request you to please guide us whether doing so is allowed in Shari’ah or not. Second, in the contract of our offshore investment company there are some clauses regarding some permissible ratios of assets I. e. 1. Companies whose ratios of debt to total assets exceed the permissible ratio percentage under Shari’ah principles, where applicable. 2. Companies whose liquid assets to illiquid assets exceed the permissible percentage under Shari’ah principle, where applicable. 3. Companies whose cash and cash equivalent assets to total assets exceed the permissible percentage under Shari’ah principles, where applicable. We don't know about these permissible ratios so please advise us what are these permissible ratios ? With thanks and regards, Suhail

Fatwa

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Publication Date

2009-05-24

Main Subjects

Economy and Commerce
Financial and Accounting Sciences
Religion
Islamic Studies

Topics

• Islamic jurisprudence
• Foundations of Islamic jurisprudence
• Sales
• Markets
• Internal auditing
• Investments
• International trade
• Tariffs
• Liquidity(Economics)
• Entrepreneurs
• Stockholders
• Corporations
• Ratio analysis

No. of Pages

2

Data Type

Fatawa

Language

English

Record ID

BIM-734277

• APA
• MLA
• AMA