QUESTION: We’re shipping an IT hardware appliance (a web-filter proxy) to our sites in several countries around the world, and are trying to figure out how to value the shipment. The actual hardware is about $4,000, but we’re also providing a hardware maintenance package (replacement, warranty, etc.) valued at $3,000, and a subscription service which […]
QUESTION: I am wondering how other companies manage international credit and debit memos from a customs and tax perspective. Specifically if an incorrect value was charged to a customer in Mexico from a seller in the US. From a customs standpoint, indirect payments are acceptable to rectify quality issues, other debts, etc., but I am […]
QUESTION: A toll material is sent to us to perform added value work from a domestic company. We then export this material to Italy. Should the commercial invoice reflect the who value of the material (+our added value) or just what we were paid to work on it. The material is going to be duty […]
Question: We import from a foreign lumber manufacturer. Before they export their lumber to us, we require that a local 3rd party inspect the product on-site. So that the inspector can get paid quickly, our lumber manufacturer pays the inspector and then the lumber manufacturer separately lists the inspection charge on the commercial invoice to […]
Question: So the issue becomes that the invoice used to clear customs may not match what the customer actually pays. The values on the customs invoice will often be higher than what the customer actually pays. This results in them paying higher duty and taxes, and the clearance value not matching the actual price […]
Question: We sell to our sister company in the EU who has asked us to drop-ship, via UPS, to their non-US customer and amend the value on our commercial documentation to reflect the price they are charging their customer. We pushed back stating that we need to provide the correct export value on for the […]
Question: A machine has been operated in Country A for several years. It is now moving to Country B via an intercompany transfer. There is no sale – the asset is transferred at current book value. The current book value [after accumulated depreciation] is $400,000. The cost of a new machine in Country B is […]
Question: I am looking for any court/penalty cases (US or otherwise) or regulation that may help me in defending my stance of not complying with my customers request. Long time customer in Europe purchases 10 widgets. Duty is levied at 10% for the widget. Upon import and installation 5 widgets are found to be […]
Question: It’s an export shipment from U.S. to Pakistan. If the transaction value (fair market value) should be $10,000.00, and we provide 75% discount for customer and the selling price is $2,500.00, which value $10,000.00 or $2,500.00 should be listed on export documents (Commercial Invoice) for customer? Can we use $2500 for customer […]
Question: Effective Jan. 15, 2016, Article 81 of Mexican Customs Law establishes the requirement for a Mexican Importer of Record to provide documented support of the valuation of imported merchandise to the Mexican Customs Broker. One of the required documents is “contracts related to the purchase of the goods”. Can this requirement be satisfied with […]
Question: I have a question regarding entered value for “intangible items”, such as a service agreement for a product and downloadable software. Do these values need to be included into the entered value of the good? ANSWER: he question often depends on what the “intangible” item is. In your case you have a service contract […]
Question: My company ordered samples of fabric from a foreign supplier. The commercial invoice provided the value of the fabric and the entry was made on that value. During a routine audit my team compared the entered/commercial invoice value to what we actually paid the supplier. We paid $500 more than the amount […]
