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 […]
Question: How do you handle the following- A domestic customer is buying new equipment from a foreign supplier, but wants to run a test of our product on that equipment first, to be sure it will run acceptably. We will ship our product to the foreign equipment manufacturer. The equipment manufacturer is not charged […]
Question: Can the membership please advise if it is allowable to go back via PEA or some other means to claim first sale on product that has already cleared customs? We are in the process of having a third party complete the due diligence for first sale with one of our vendors. We anticipate having […]
Question: Can a Maquilla provide the transactional value between the US seller and their customer on a proforma invoice ? *********** Answers: Difficult because the maquiladora does not book the assist costs on its books, and the proforma invoice would have to include assists. Also the material costs and “value-added” in Mexico are usually estimated […]
Question: We import non-functional product that in most cases (some of it will actually be scrapped) will be disassembled and component parts used to manufacture finished goods that are then sold as “re-manufactured” to customers. What is the proper method of valuation for these goods? What factors must be taken into consideration? Can these goods […]
