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 […]
QUESTION: My US company sells to my Canadian company using intercompany pricing. My Canadian company then sells to a distributor in Canada for a slighter greater price. That distributor sells to a customer in Canada making a profit. It was arranged long ago that when the customer in CA wanted to return the goods, it […]
QUESTION: I’m looking for information regarding selling commissions in the EU, Korea and Japan. I have looked in the Official Journal of the European Union dated 10.10.2013 implemented 5/1/2016 In Article 71 1. (a) (i) it address commissions except buying commission. Does that imply that selling commissions are dutiable? Does the EU have an informed […]
QUESTION: A customer in China had their forwarder change the amount on invoice to less than the transaction value (price paid/payable), and they indicate that is because it is good for customer clearance in china, and that it won’t bring us any trouble. Please confirm that the company in China is incorrect and advise […]
QUESTION: In a routed export transaction, if the inland freight cost is not included in the reporting to commerce, who is ultimately responsible for this error? ========== Answers: Who hits the send button to transmit the EEI? EEI compliance is ultimately the responsibility of whomever files the EEI, whether it’s the FPPI in a typical […]
QUESTION: My US company has received an order from a buyer in the Philippines. Rather than source this product from the US, we have sourced it from the UAE. The supplier is not related to our US company. The buyer’s freight forwarder will be picking it up from the UAE supplier’s warehouse (EXW to our […]
QUESTION: Do I have to add inland freight charges & insurance costs to my EEI value if I am not paying for the inland freight or any insurance? ========== Answers: Ah, yes. Who’s paying for it is not a factor in the value to be reported. Keep in mind on this particular topic that estimates […]
QUESTION: We are adding an assembly line in our maquiladora and we’ve issued a seven-figure purchase order for a service called integration. Integration comprises all of the engineering, programming, and labor to get all of the individual machines to work together. The value cannot be tied to each individual machine. Most of the integration work […]
