My company is currently going through a Focused Assessment. Our Customs auditor is questioning whether our buying commissions aren’t actually selling commissions. We have buying agreements on file for all of our buying agents. We receive separate invoices for the commissions as well. We have some commission vendors who have both a U.S. office and […]
We are sending no charge samples to a related company in China that will be doing some production for us. We always put the true value for customs purposes but China is insisting we keep it under $50 to avoid paying taxes. I need a regulation or some offical verbage that states the law and […]
I’d be interested to know how others handle this logistics scenario. A U.S. parent company receives a purchase order from its U.S customer. The U.S. parent places a subsequent order for the material with its subsidiary in Belgium. The Belgium subsidiary (manufacturer) drop ships the completed order directly to the U.S. customer. The Belgium subsidiary […]
I’d be interested to know how others handle this logistics scenario. A U.S. parent company receives a purchase order from its U.S customer. The U.S. parent places a subsequent order for the material with its subsidiary in Belgium. The Belgium subsidiary (manufacturer) drop ships the completed order directly to the U.S. customer. The Belgium subsidiary […]
I think we need to use the Deductive Value for the following import. We export a item which is a mixture in various percentages of virgin and reclaimed materials to an unrelated party. When the customer is done with the process they scrap up the unused material and we import the unused leftovers from the […]
Does anybody have examples of how they are effectively able to support the deduction of Freight or Insurance on a Customs Entry? Since Customs requires that the actual price paid at origin be declared – see below – (and Customs Auditors verify this via a copy of the wire or a copy of a cancelled […]
We have a substantial number import transactions with related parties. We have transfer pricing documentation for tax purposes, but not for Customs. Does anyone already have a transfer pricing document for Customs? If so, what values are you using for your import entries, and what basis are you using to support those values?
Items are imported from foreign manufacturers of the same country through a Buying Agency agreement. A single item code “can” be sourced from multiple manufacturers in the same country with different prices. Buying Agent has a facility in China where items can be consolidated into a single shipment. Identical items from different manufacturers are comingled. […]
I would like the membership’s thoughts on an internal debate we have going on. When feasible, we utlize 9802 groupings on goods returning after repair. Unfortunately, on certain items, we cannot and so classify under the actual classification however, the question is what value to declare in these instances. One opinion is that we show […]
I need urgent replies from our membership concerning valuation of obsolete product. Our company has closed a part of our business and sold the rights to the machine model, assembly to a company in “the far east”. This company is a current distributor to my company, headquartered in the US. My company is selling all […]
For those members that have a Landed Cost Model for product imported, I would like to ask if you mind sharing what ?cost buckets? make up your landed model (ocean freight, port fees, commission, inland freight, etc). I?m not looking for dollars, just fee categories.
Has anyone been through a focus accessment that CBP found the price paid is different than price declared due to exchange rate deviation? The bank that pays our vendor uses the daily bank rate for net 60days, the exchange rate is always different than the Customs quarterly or daily rate used at time of entry. […]
