• What value to declare for an inter-company transfer

    QUESTION: We are shipping used hardware from our US location to our Canada location.  The hardware components are a few years old and we are unsure what value we (should) note. Should we use the original purchase value, the depreciated value, or, the replacement value?  We are not selling, simply transferring the product to be […]


    QUESTION: Looking for feedback on the following valuation scenario: US Company A issues a PO to US Company B, but parts are shipping from a German Company. German Company issues a Proforma invoice (for US Customs purposes), but the price declared is considerably lower than what US Company A is paying US Company B. If […]

  • Invoiced value vs INCOTERM

    QUESTION: I am wondering how other companies manage the issue of wanting to pay for all transport, duty and taxes at destination, essentially DDP, and how this intention is reflected on the invoice. We’ve been going back and forth on how best to reflect this on the invoice and explain to the destination customs broker. […]

  • Invoice Adjustment Question – Valuation

    QUESTION: We are hoping to get your input on how to handle estimated freight as we have conflicting answers and perspectives.  If a client has an invoice for $7000 ($5000 of product + $2000 of estimated freight) how do you list the entered value for US Customs?  We know that the estimated freight is not […]


    QUESTION: Hypothetically, if the price paid/payable for an item being sold/exported to Mexico is $100K, and $90K of that is derived from the cost of the specialized manufacturing which took place in the USA, does the origin of the any components even matter for USMCA qualification since they collectively comprise under the 10% of the […]


    QUESTION: For Non-Commercial materials, how does your Company calculate Pro Forma Values for Customs purposes (method of valuation used) for Active Pharmaceutical Ingredient (API), Drug Product (DP), and non-commercial R&D materials? 2. For Non-Commercial Valuation, how does your Company compute Pro Forma Value for Customs? ******************* Answers: This is a good question.  The answer starts […]


    QUESTION: What valuation method should be applied to the following scenario: China sells product to US Entity. For this example, lets say the unit value is $100. In some cases the China company is related. For this example, lets say they are not related. The product ships direct to Canada Entity which is related to […]

  • Customs valuation for returned inventory

    QUESTION: We are reassessing our inventory allocation globally.  We’ve found slow moving inventory in country X that is fast moving in the US. We want to bring this back to the US. Some has been sitting for a while and was about to be written off and destroyed so I. That market there is no […]


    QUESTION: We will be taking over the order book for an existing US company.  To fulfill these orders, we would purchase finished goods from China, S Africa &  Brazil that would become our inventory at an existing facility.  We would then re-sell this material to the end customer directly and pay a royalty of 3% […]


    QUESTION: We have a growing quantity of less-than-material-minimum-buy surcharges, that we declare as dutiable under supplemental payments (not assists). Current process: we the buyer direct the T1 seller to buy certain quantities of materials from certain T2 materials suppliers than are often below the T2 suppliers’ minimums.  The T1 seller pays the T2 for their […]


    QUESTION: We are going to be importing a product that will be assembled slightly differently than normal. Instead of our factory in Vietnam making/assembling the complete item. Our factory with make most of the item. Then send it to our 3PL in Vietnam, where the final piece will be installed. What is the recommended process […]


    QUESTION: My question relates to valuation on imports into the USA. Currently, a US company purchases steel products from a vendor in China and imports it into Canada. Then half of that product is sold to a related party in Canada at a 65% markup and the remaining half of product is shipped to the […]