Related Parties

Related Parties

  • Related Parties

    QUESTION: Could someone please weigh in on the related party scenarios described below? Scenario 1: Blue Company, a US wholesaler, owns 50% of Red Company, a manufacturer in Mexico.  Red Company is a supplier of finished goods to Blue Company. Entries involving these parties are correctly declared on the 7501 as related parties.Green Company, a […]

  • RESTRICTED PARTY SCREENING SCENARIO

    QUESTION: Are foreign domestic sales customers of a U.S. owned foreign entity eligible for denied party screening?   The U.S. owned foreign entity is selling non-U.S. origin products domestically (in their country) and are not exporting products out of their home country.   Would these foreign domestic sales be considered U.S. exports as they are […]

  • 7501 RELATED PARTY INDICATOR

    Question: We are the owner of goods which are stored in a third party warehouse in Canada which are routinely imported into the US. The goods are moved from the third party warehouse to the US destination, but since we are the owner of the goods, no sale takes place. The shipper on the BOL […]

  • RELATED PARTY NAFTA IMPORTS

    Question: I work for a multinational company that has production facilities in the US and Mexico.  We stage assembly components and ship them to our Maquiladora, and ship finished product (and unused components, tools, and scrap) back to the USA.  My question is can the US signor of the NAFTA certificate used for export also […]

  • RELATED PARTY TRANSACTION and IMPORTER/EXPORTER

    Question: How an importer/exporter is defined in a RELATED-PARTY TRANSACTION? Acme Co. has a wholly-owned US Subsidiary in England. 1.)    The “Deductive Valuation Method” rather than the Transaction Valuation Method should be used for  related company transactions, per the valuation reg’s. 2.)    The definition of a related party includes the following: “ members of the same […]

  • US NRI

    Question: My company is importing into the United States, as a “non-resident import of record”. The CF7501 shows my company as the manufacturer through the MID in box 13. And, my company is also shown as the IOR in box 26. I believe we should show the parties as “related” in box 32 of the […]

  • RELATED PARTY STOCK TRANSFER

    Question: Another question on related party valuation process… here’s the scenario: Company in UK transfers stock to their distribution site in the U.S.  There is no sale at the time of importation as the goods remain in UK ownership.   There is no transfer to USA sister company either.  UK company has non- resident IOR […]

  • RELATED PARTY PROFIT INVOICING

      Question: 99.9% of all my shipments are between various related companies (different tax IDs but same corporate parent). The transactions are called “sales” or “transfers.” There isn’t a “profit,” as such, on the transactions. But I understand that I need to show a profit on my international commercial invoices, correct? Does it matter how […]

  • HONG KONG PURCHASE / CHINA SHIPMENT

      Question: We are being advised that we may be able to purchase our goods from a Hong Kong company ( a sister company of sorts) at a profit from them and ship from China as normal. The Hong Kong company would purchase from China and we would purchase from the Hong Kong office. Still […]

  • QUESTION ON RELATED PARTY TRANSFER  PRICING

      Question: Hi everyone.  I had a valuation question regarding exports from a US Company (that is a wholly owned subsidiary of a Japanese company) to the parent company in Japan.  I’ve done some research and since Transaction Value wouldn’t apply here, alternative methods such as like or similar merchandise, deductive value, and computed value […]

  • QUESTION ON INTERCOMPANY TRANSFER PRICING

      QUESTION:   We are having issues internally with how items are valued and accounted for as we transfer them from the US to our warehouse in Mexico.   >From the trade compliance perspective, whether or not an item is fully depreciated, I must declare a value to Mexico Customs that accounts for the actual […]

  • Direct Ship

      QUESTION:   Our company is a multi-national with an entity in Venezuela, as well as many other countries.  It so happens that the contract for one of our key raw materials is between our US entity and a company in Belgium.  We need to write a PO to this Belgium company, and have them […]