Valuation

Valuation

  • FALLBACK VALUATION METHOD

    QUESTION: Under the fallback valuation method is the cost of processing performed in the US allowed as a deduction to the entered value? The product has no value in the sense that we are not charging our “customers” for pick-up of the product, freight to move the product to our locations or any processing fees. […]

  • IMPORT VALUATION OF RETURN FOR REPAIRS

    QUESTION: If one exports an item ($10,000 value) to be repaired, and the value of the repair is $2,000, when I re-import to the USA, what VALUE would I declare if I DO NOT WANT TO USE 9802 (which is optional)?  In other words, I’m just going to declare the base HTS and pay duty/mpf […]

  • FOB IMPORT VALUATION NDCs

    QUESTION: For FOB goods out of China into the US – is there ever a circumstance when the following fee’s could be considered NDC’s (Nondutiable Charges. Inland origin transportation fees Vendor Management Fees Document fees ========== Answer: Is there ever a circumstance when the following fees could be considered NDC’s?  Yes.  But it really depends […]

  • IRS VS CUSTOMS VALUATION

    QUESTION: I’m looking for a resource to share with Finance folks outlining the differences between Customs and IRS transfer pricing and the why behind why Customs cares.   =========== Answers: Basically IRS allows companies to report import transactions on a calendar or fiscal year basis.  Customs laws require actual import values to be reported on an […]

  • US import valuation of returned goods

    QUESTION: Is it acceptable to value goods returned for repair at the ORIGINAL SALE PRICE?  We are small enough and all items have serial # that we can tie all items back to the original sales order/export, so we use the original sale price as the value of the good returned/imported to the USA for […]

  • Transfer Pricing and Resale Minus Model

    Add’l Answer: I am not sure if there is some confusion here.  The value law has six methods of appraisement. See 19 USC 1401a.  These are:     Method 1: Transaction value.     Method 2: Transaction value of identical goods.     Method 3: Transaction value of similar goods.     Method 4: Deductive method.     Method 5: […]

  • INTERNATIONAL FREIGHT IN VALUE

    QUESTION: We have a circumstance where we are buying what are called “spot buys” for microprocessors that our vendor cannot source. So we, a USA company are purchasing them internationally, having them sent to us and we are forwarding them to our vendor in Mexico, to assemble onto the pc boards they are manufacturing for […]

  • Valuation

    QUESTION: Is a subscription part of the dutiable value? The definition of a subscription in this case is an agreement a customer makes in advance to receive something for a specific period of time. In this situation, the subscription would be for technical support, software updates, & licensing. The pricing agreement that the customer signs […]

  • First Sale Flag

    QUESTION: As of 6/2022, does CBP still require an “F” by the line value if claiming first sale? ************ Answers: no-that hasn’t been a requirement for several years now (your broker should be giving you the same answer) ************** Yes, the First Sale indicator is required for those transactions ***************

  • DROP SHIP EXPORT VALUATION

    QUESTION: Our foreign customer (the FPPI in this transaction) places an order to our company in the US under EXW terms to be drop shipped to their end customer. The end customer nominates a freight forwarder to act as their appointed US agent. Under EXW terms the appointed agent should file the EEI as a […]

  • AIR FREIGHT CHARGE AS FREIGHT DEDUCTION ON 7501

    QUESTION: For customs brokers and trade compliance professionals, is ExWork Large Courier sample from Netherlands via the same large courier air to the US, eligible for freight deduction on 7501?  Large courier shipping cost is a part of the commercial invoice, and I do not know whether it is the “inland freight cost” or not. […]

  • VALUATION FOR DOCUMENT SHIPMENT

    QUESTION: We are closing one of our company’s pharmaceutical laboratory facilities overseas. They have hundreds of boxes of records; most are for the US, some for Europe. They will be sending the records back to the applicable corporate locations. We cannot leave them overseas or convert them to electronic storage (most of them are likely […]