QUESTION: Can anyone please advise whether “Concept Engineering” should be taken into consideration for valuation purposes? Basically this is a feasibility study to determine if the manufacturer/supplier could take on the project of building a customize machine. Accounting allocated this as an expense as it was done one year before placing the actual PO. […]
QUESTION: We purchase products from China. After we ( US company) received several shipments we also received a credit because of the devaluation of the Chinese dollar. Are we able to reclaim the extra duty paid before we received this credit? **************** Answers: My take is that the revised pricing meets the ‘Price Paid or […]
QUESTION: We import materials into the EU under a related party transaction. In some instances, very specific materials must be procured and we charge a service fee because of the specificity of the materials. The price of the goods are the same as if they were standard goods, but we then charge the customer a […]
QUESTION: We have an agreement in place which clearly defines that we have a bone fide buying agent. We pay our agent a percentage rate based on the amount invoiced by the supplier and we receive a separate quarterly invoice directly from our agent for the commission. Based upon the Buying and Selling Commissions […]
QUESTION: My head is ready to explode. I export used parts (dirty cores) from the USA to my related facility in Mexico for them to refurbish/restore to “new” condition. I (US company) retain ownership of the items the entire time – the MX plant never takes ownership, they are just hired to do the overhaul/restoration. […]
QUESTION: Can someone direct me to a valuation ruling regarding whether or not foreign project planning and/or management fees are considered an addition to the price paid/payable? If you don’t have ruling but have experience, please share! The project management fees include: capacity planning, price planning, weekly updates, managing sub-suppliers. The project management fees […]
QUESTION: We are an apparel importer. For 2016, we had about 36% of shipments shipped under FS (First Sale) transactions. We would like to know if any of the members are willing to share what was the percentage of their import FS shipments for last year. What percentage of FS transactions per year may raise […]
QUESTION: Company A/US purchased widgets from Company B/US for $50.00. The terms are FOB /Thailand. Company B/US purchases widgets from Company Z/TH for $10.00. Company A/US is the IOR, and receives the Company Z/TH commercial invoice in error, and reports the transaction value of the goods as $10.00. Months later, Company B/US sends a revised […]
QUESTION: I’m looking for advice about whether or not a discount can be applied to the value of replacement parts provided free of charge on a customs purpose invoice. Here’s the scenario: A customer in Australia received a chandelier on which some of the glass parts were broken. My company agreed to ship replacement glass […]
QUESTION: We make certain steel parts in the US which we then sell to our “sister” company in Mexico for some action: heat treating, drilling holes, washing and checking services, etc. Our sister company then sells us the part back to us after they have finished their service action. Due to the fact that the […]
QUESTION: Interested to learn what best practices others are using to control/confirm/audit pricing on invoices – prior to making entry. Trying to cut down on PSC/PEA and Protests for pricing errors. Do most of you pay for your goods: 1 1.) Upon shipment at origin port? 2.) Upon receipt in the U.S.? 3.) Other? ===================== […]
QUESTION: Customs publication about Value it identifies Transaction Value as the price actually paid or payable for merchandise when sold for exportation to United States, Plus amounts equal to ,inter alia, The proceeds of any subsequent resale, disposal, or use of the imported merchandise that accrue, directly or indirectly, to the seller. Does anyone have […]
