• valuation of unknown/non-owned goods

    Question: I work in a business that uses the fallback method to value used imported goods for repair/overhaul, but these are MY OWN goods that I originally sold.  So I have a documented depreciation method from original sale price to value the goods at the time of import.  How would one value goods for which […]

  • Deductions from invoice value (NDC)

    Question: If Incoterms are FOB port of departure, does this mean that ocean freight is not allowed to be deducted from invoice value when determining entered value? Answer 1: Using the FOB incoterm means that the buyer will be responsible for paying the freight costs; however, you are allowed to deduct that amount from the […]

  • International Freight Deduction

    Question: As we all know international freight is not dutiable in the US and may be deducted from the price paid/payable when that price includes an adjustment for the same.  What if the shipper paid tax on the international freight charges in their home country, and the carrier’s invoice reflects that? Is the amount deductible […]

  • Customs Value on Goods exported then returned for credit

    Question: Customs Valuation on Returns: Scenario A US Company A sells product A for $100 at arm’s length and exports it to Italian Customer B.  Italian Customer B receives the product and decides they don’t want it, obtains authorization to return Product A to Company A, who issues a credit for $100. Company A imports […]

  • Valuation of Paper License

    Question: We sell licenses/activation keys to our software.  We ship those on pieces of paper to various countries in the EMEA region.  The license itself can have a value of $10,000. As long as we distinguish the two values on the commercial invoice, are we allowed to have the Customs value be a dollar (the […]

  • valuation of replaced product

    Question: An item we shipped to a company in Korea two years ago had a shelf life and the item expired before the Korean importer used it.  The original item was made and sold in 2022.   So, its value and sale priced was based on 2022 production costs. We want to send a replacement of […]

  • Repair Return Valuation – Cost+

    Question: We are a repair company in the US who receives equipment from a Canadian customer for repair/return. For the part valuation on the CI, we want to list the cost as (parts+labor) + 10% for the equipment.  Apart from the additional duty/tax that we would pay for the added 10%, are there any issues […]

  • Valuation

    Question: We import and export human sera from participants in clinical trails around the globe.    My company may, or may not be incorrectly valuing the samples.  We are opting to go with the CBP approved valuation method (See GSK and MErck Valuation Rulings) of the cost of extraction + vials + packaging costs. Someone […]

  • Validating Customer Provided Product Valuation

    Question: We are a telecom repair company that receives customer owned equipment for repair and then return back to the customer location. If the customer provides the unit value for the equipment shipping, what validation do we need to put in place to ensure the parts are not being over or under valued? For the […]

  • Intercompany Transactions and Principal Resale Minus

    Question: If intercompany transactions are on a Principal-Distributor model using “resale minus” where the agreement is to ensure the Distributor has a 3% profit, are the values for arms length still on a per line item basis or is it on an overall sales? Answer 1: The transaction value method looks at the profit earned […]

  • China – DAP or CPT

    Question: I have been hearing that China prefers DAP port to be used instead of CPT port.  Is there any reasoning behind this? Answer 1: C group incoterms are the most seller friendly incoterms. Under CPT the seller transfers the risk for the condition of the goods prior to main carriege. While under DAP the […]

  • What value to declare on commercial invoice when exporting from US

    Question: Question on transactional value declaration for export from US & import to Canada. We export from US to Canada. The goods are stored at a distribution center in Canada and when the Canadian consumers place an online order, or a retail store orders a lot of qty, it gets pulled from the distribution center. […]