Strategic Planning
Customs Valuation
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Dutiable basis The import duties due at import are, in principle, levied ad-valorem (tariff rate x customs value). Therefore, the customs value of the goods is important at the import of the goods. Customs valuation is not only important for the calculation of duties due upon importation (ad-valorum based duties), but also for excise duties and value-added taxes, import restrictions/licensing and value added rules in preferential origin determination. As a rule, the customs value is based on the transaction value (price paid or payable) of the goods which are imported. For further information, see also customs valuation under helpful links and under solutions. |
Who is responsible for the correct customs value declared?
As with classification, it is important to appreciate how valuation is determined, and also to understand who is legally responsible for the valuation declaration.
Where the importer is responsible, hiring a customs broker to declare the value does not protect the importer from liability for valuation errors. Even where someone other than the importer is legally responsible for valuation determination, the principal must take care that all documents and information provided to the third party are accurate and complete.
Therefore, under all circumstances. the principal should use due care to ensure that commercial documents and information appropriately reflect the information necessary to determine value, and that valuation determinations are reasonable and fair under the rules in force.
CustomsAdvisoryPlus' valuation services
may relate to, amongst other things, the following elements:
- Sales to Branches, Commissionaires and Limite Risk Distributors
- Royalties (trademark and/or technology related)
- Valuation of intangibles (such as R&D Costs;distinction of type of costs and allocation)
- Valuation of tangibles directly/indirectly supplied to seller
- Buying Agent Fee
- Interest and Financing Agreements
- Transfer Pricing versus Customs Valuation (see also Solutions)
- Transfer Pricing and Origin Requirements
- Retroactive Price Adjustments
- Evaluate advantages use of alternative valuation methods (see also Solutions)
- Advise on/implement best practice (written) internal control procedures
All of the above identified elements could potentially result in customs duty savings and, if not treated/implemented properly, also result in duty/penal exposures.
Classification: see here
Sourcing: see here
Suspensions/Exemptions: see here
More information: contact info@customs.a.plus.com