Question: The majority of our suppliers are intercompany. We purchase under an Exworks pricing term and a DDU delivery term therefore nothing is included in the price of the product and our suppliers prepay and add the freight to the invoice. Our entered value is the subtotal of the exworks price. Our broker is telling […]
We offer a 3% early payment discount to many of our importing customers. How should this be handled on the commercial invoice? Should we show the list sales price (which agrees with the Letter of Credit) and include verbiage reflecting a possible discount for early payment or should we send the buyer a corrected CI […]
We are moving some used manufacturing equipment from the U.S. to several overseas facilities. The declared value should be the original value of the machinery less depreciation. Am I correct?
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 […]
