Question: I recently joined a company and in assessing things as one does, I learned that for the past several years there have not been transfer price adjustments, period. Not prospective or retroactive. The company uses CPM method. What have occurred are profitability adjustments that occur once or twice throughout the fiscal year, and then […]
Question: We’re trying to work out the valuation of research and development and clinical samples produced by a contract manufacturing organization (CMO). We export the raw material to the CMO, and the CMO provides the labor and turns the raw material into vials of drug samples for testing purposes. What information do we need to […]
Question: With the drive globally for sustainability there will be an increase in the sale of materials that are made sustainably. For instance, you have polymers that are manufactured with petroleum-based feedstocks (let’s call those virgin polymer) to polymers that are now produced with renewable feedstocks (let’s call those renewable polymers). Chemically the renewable polymer and […]
Question: How does one go about valuing goods, using the fallback method, which it DOES NOT OWN, and hence has really no idea about? I’m thinking about US SERVICE PROVIDERS – who import goods solely to perform a service on them. They don’t purchase anything, don’t take title, and truly have no idea about the […]
Question: I work in a business that uses the fallback method to value used imported goods for repair/overhaul, but these are MY OWN goods that I originally sold. So I have a documented depreciation method from original sale price to value the goods at the time of import. How would one value goods for which […]
Question: If Incoterms are FOB port of departure, does this mean that ocean freight is not allowed to be deducted from invoice value when determining entered value? Answer 1: Using the FOB incoterm means that the buyer will be responsible for paying the freight costs; however, you are allowed to deduct that amount from the […]
Question: As we all know international freight is not dutiable in the US and may be deducted from the price paid/payable when that price includes an adjustment for the same. What if the shipper paid tax on the international freight charges in their home country, and the carrier’s invoice reflects that? Is the amount deductible […]
Question: Customs Valuation on Returns: Scenario A US Company A sells product A for $100 at arm’s length and exports it to Italian Customer B. Italian Customer B receives the product and decides they don’t want it, obtains authorization to return Product A to Company A, who issues a credit for $100. Company A imports […]
Question: We sell licenses/activation keys to our software. We ship those on pieces of paper to various countries in the EMEA region. The license itself can have a value of $10,000. As long as we distinguish the two values on the commercial invoice, are we allowed to have the Customs value be a dollar (the […]
Question: An item we shipped to a company in Korea two years ago had a shelf life and the item expired before the Korean importer used it. The original item was made and sold in 2022. So, its value and sale priced was based on 2022 production costs. We want to send a replacement of […]
Question: We are a repair company in the US who receives equipment from a Canadian customer for repair/return. For the part valuation on the CI, we want to list the cost as (parts+labor) + 10% for the equipment. Apart from the additional duty/tax that we would pay for the added 10%, are there any issues […]
Question: We import and export human sera from participants in clinical trails around the globe. My company may, or may not be incorrectly valuing the samples. We are opting to go with the CBP approved valuation method (See GSK and MErck Valuation Rulings) of the cost of extraction + vials + packaging costs. Someone […]
