QUESTION: I would be interested to know if any member use appropriate approach to determine the valuation method for “Prototypes” and “Non-sale Inter-company Transfer”. For instance: 1. If I have a “prototype” made in the U.S. shipped from the U.S. to Taiwan, what method of valuation should be used? 2. If I have a “production […]
QUESTION: Are deductive value and Resale Minus valuation methods one and the same? If not, what is the difference? ***************** Answers: Deductive value is a statutory method for appraising imported goods (see 19 USC 1401a(d)), and matches up with the WTO valuation code as an approved methodology. A Resale Minus valuation method is not a […]
Do incoterms affect the value of goods reported on the EEI? If the goods are picked up from our manufacturing site by one of the major carriers, is the freight, insurance still required to be estimated and reported? If so, how is this accomplished? In this context of what EEI value to report, does it […]
QUESTION: In the FTR 30.1(c) the export value of goods is defined to include the freight and insurance to the port of export. If goods are sold ex works is the freight and insurance required to be included on the EEI value of goods? Do incoterms affect the value of goods reported on the EEI? […]
QUESTION: We manage client assets and originally sold the assets to them. If the asset is a few years old and needs to cross the border and we only have the original sales price of the asset, is this sufficient to declare as a customs value? Although we manage the assets, we don’t own them. […]
QUESTION: I have some questions related to valuation for related party transactions that I have not found in other resources. Most of our imports are from related parties. Some of these materials are finished goods, some of components that will be assembled with other materials to comprise a finished good, and still others are simply […]
QUESTION: CBP published a “Pipeline” on January 11, 2017 with 3 options for declaring imported value on a DSP 61 or DSP 73. http://www.icpainc.org/wp-content/uploads/2014/10/ICPA-Department-of-State-Import-and-Export-Electronic-Filings-for-Licenses-and-Exemptions-Bulletin.pdf An example is given for a part that has been exported for $750, and had $350 of repair work. According to CBP, upon importation the importer can: 1. Declare $1100 against […]
QUESTION: A customer returned product to our Chinese entity because it was defective. Due to currency control restrictions and difficulty getting money out of China the China entity is considering to reimburse the customer via a discount in the amount of the defective goods on the next commercial invoice. Is the transaction value on the […]
QUESTION: Will any of the members have experience in proper customs valuation on Inventory Stock Transfer? We are a Canadian company that will be transferring inventories to a related-party Warehouse in the USA for future sales order fulfillment. When the goods are being transfer in the US, we will Customs duty pay for these inventories. […]
QUESTION: The company I work for is considering to forego retrospective transfer price adjustments and just move forward with “prospective” transfer price adjustments. The way the tax team explained it to me is that they will capture any profitability issues in the true up “next year”. They advise that this should resolve any need to […]
QUESTION: We have a customer who wants to prepay for shipments as a way to hedge against currency fluctuations. They would send a Pro Forma Invoice with an amount and a few Part Numbers that they buy from us, but not necessarily the PNs they will buy from us on the next order. They will […]
QUESTION: We are sourcing and shipping materials to a collaborator in the EU for testing as part of a project. We issue our proforma invoices using the actual values paid for the materials we are sending, we are not selling the materials to them. We have just found out that the recipient is adjusting the […]
