CUSTOMS VALUATION: ARE YOU INADVERTENTLY UNDERVALUING IMPORTED MERCHANDISE?

On 13 October, Torres Law in the US published a guide saying that one area often over-looked in valuing imports into the US are the transactions and payments that may occur outside of the invoice for the merchandise, commonly referred to by CBP as “statutory additions” to the price actually paid or payable. This area is often overlooked and misunderstood because company accountants and tax lawyers may not be familiar with CBP valuation laws.  Required additions include assists, royalty payments, and selling commissions.  The guide highlights the role that the financial data may have on customs valuation. The valuation and statutory additions are comprehensive and covered by US laws, CBP regulations, CBP Informed compliance publications, and CBP Rulings.  A fully integrated valuation program must cover the price actually paid or payable, basis of appraisement, related party transactions, and what are termed statutory additions.

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Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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