Valuation

Valuation

  • Valuation of Technology

    QUESTION: We are trying to ship a Disc with documents, partial software codes, test results all classified with ECCN: 3E001 Technology to the EU. What do HTS should be use?  HTS for the Disc or the content on the Disc? And what value should we use?  The value of the Disc at $1.00 each or […]

  • VALUE FOR EXPORT

    QUESTION: What is the best practice for determining the value for export purposes? We export our products to a bonded warehouse in EU then the goods get released on DDP basis when orders placed by our customers. The value reported for US export is our company standard price which may vary from the value the […]

  • FOREIGN INLAND FRT DEDUCTION

    QUESTION: I was recently approached by a company, who provides foreign consolidation services, with an opportunity to deduct foreign inland freight from our FOB/FCA prices to save duty. We import on FOB or FCA terms, and those charges are baked into our purchase price from our vendors. So, actual foreign inland freight is not known […]

  • VALUING A NO VALUE BYPRODUCT

    QUESTION: We use a tolling manufacturer in Canada to produce a product for us using our Canadian origin inputs.  We import the primary finished good into the US using the fall back valuation methodology. We are all set with this part.   Here is the crux of the question – the production process yields a […]

  • PROVING PAYMENT IS NOT AN ASSIST

    QUESTION: Our company selects and nominates material suppliers in Asia from whom our foreign manufacturers buy those materials. Sometimes, factory will not meet the Minimum material order requirements. Supplier will impose a surcharge for it to our unrelated manufacturer/factory. Factory will charge us back for it. ( it is not in the contract).   I […]

  • VALUE FOR X-BORDER NRI TRANSACTION

    QUESTION: We are a US company who is selling a product to our Canada company. Instead of delivering to our Canada company we are shipping direct to their client. This is via truck over the border. Our Canada company will be the IOR with the goods being delivered to their Customer who is the ultimate […]

  • WARRANTY RETURN DUTY CREDIT

    QUESTION: Our global customers who are distributors return purchased product to our US facility for warranty consideration.  When we ship replacement product, the distributor in the foreign country has to import the product and incur duties again, even if the product is being replaced free-of-charge under warranty.  We would like to give the foreign customer […]

  • SAMPLE VALUATION SCENARIO

    QUESTION: We manufacture  high pressure waterjet cutting machines.  Potential customers will send us various types of material i.e. steel, plastic, granite, etc. to see how the machine will cut their material before they purchase a machine.  Having material come from domestic customers is not a problem as no value is needed to return the cut […]

  • IDENTICAL AND SIMILAR VALUATION

    QUESTION: For many years I have held the belief that when using identical and similar merchandise to find a value, what you were comparing your goods to must be from the same country as yours.   In other words, you cannot compare an item from England to an item from France. You must not cross […]

  • COST AS INTER-CO TRANSFER PRICING

    QUESTION: Valuation question:  Is cost ever acceptable as proper valuation for goods moving between related parties?   Example:  I have purchased items (we don’t make them) so the cost is what we bought them for.  I then export them from the USA to my related company in France.  Do I have to apply further mark up/inter […]

  • COST AS INTER-CO TRANSFER PRICING

    QUESTION: Valuation question:  Is cost ever acceptable as proper valuation for goods moving between related parties?   Example:  I have purchased items (we don’t make them) so the cost is what we bought them for.  I then export them from the USA to my related company in France.  Do I have to apply further mark up/inter […]

  • IMPORT VALUATION SCENARIO

    QUESTION: One of my customers import from Europe and the values on the commercial invoice are in euros; they declare the production value. They act as the IOR with a foreign base under an assigned number. The goods are not sold at the time of importation as they get sold within the following several weeks. […]