Our products are sold in such a way that a sales person will discount certain items. At time they will discount an item 100%. So as an example a $500,000 deal could have a lien item that is discounted 100%. Original price is say $40,000. No here is the part that makes me nervous. When […]
Here’s the scenario A. Foreign parent company issues PO to it’s US manufacturing subsidiary to build a system at an intra-company price of US$8000. B. Parent company sells this system to a customer in a third country and receives a PO from this customer at the agreed up sales price of US$10000.00. The terms of […]
A company purchases products from an offshore supplier and imports into the U.S. Then re-distributes some of these products to global corporate sites (demos, spares, training, etc.) What is the group’s opinion regarding internal transfer pricing mark-up to be applied over the product’s initial acquisition cost ?
While updating our Import Compliance Manual, I came across some information which indicates that stuffing container charges, whether or not paid to the seller, are considered as dutiable packing. I have asked various local contacts and they were also surprised to hear this. I can only assume that we are all missing something that allows […]
I have some questions regarding plastic reusable pallets: * If product is imported on a plastic reusable pallet, does the value of the pallet need to be shown on the commercial invoice? * Is duty paid on the pallet? I believe this may be related to the Incoterm used but not sure. * If the […]
When declaring other charges on form 7501, what is the definitive answer to making a statistically correct Ocean Freight declaration! Our corporate policy is to buy only on an FOB basis so that we get the exact cost and never confront having to prove the exact cost on a CFR transaction. But the basic ocean […]
Question: My company (in US) purchases from foreign related party. We use transaction value. However, this year, after fiscal year ends in October, we found out Accounting made an upward adjustment in payment to foreign related party in order to adhere to the Corporate profit/finance guidelines. I would like to pose the question to the […]
A freight-forwarder / 3PL in Europe accepts defective returns on behalf of their customer, a U.S. manufacturer, then consolidates and ships to the U.S. on a weekly basis. Values on shipping documentation show their U.S. customer’s internal transfer pricing. The freight forwarder references themselves as the shipper on both the invoice and bills of lading. […]
I have some questions regarding plastic reusable pallets: * If product is imported on a plastic reusable pallet, does the value of the pallet need to be shown on the commercial invoice? * Is duty paid on the pallet? I believe this may be related to the Incoterm used but not sure. * If the […]
Question: I would like to ask the membership what should be the correct entered value for the below scenario? US Company issues a domestic purchase order to a US supplier. The US supplier places the order to an overseas manufacturer and ships directly to the US company and the US company is the IOR. The […]
Our company has hired a global procurement consultant to help find suppliers and savings by purchasing overseas. They will be paid a percentage of the actual savings for any new supplier they set up for us for the next 3 years. Will the payment to the consultant for the savings be an assist or a […]
The company entered into an agreement with a chip manufacturer to use their patented digital technology in a high definition radio, and was required to sign a non-exclusive intellectual property license agreement, within which was contained a section discussing royalties. One paragraph in this sections reads “In exchange for the license grants to Licensee, Licensee […]
