The duty, taxes, and Customs’ fees due on an imported article are its percentage of its DUTIABLE VALUE. The dutiable value is determined by the process of appraisement. Generally, appraisement is calculated by determining the transaction value of the goods, i.e. the price actually paid or payable for the goods when sold for export into the United States. Usually, the the price paid or payable is based on the F.O.B price at the port of export and shipping it onto the carrier.
Improper valuation of goods affects the duty liability. If the value of the goods is in excess of its proper value, the importer will pay a greater amount than necessary. Conversely, under declaring the value of goods may result in costly penalties. Our firm assists importers in appraising the value of goods as well as preparing and submitting binding rulings to Customs for calculating the correct value of goods.
The following costs are included in the price actually paid or payable:
1. Selling Commissions – Any commission paid to the seller’s agent (anyone who is related to , controlled, by, works for, or on behalf of the manufacturer or seller).
2. Assists – Anything that the buyer provides to the manufacturer and/or seller directly or indirectly either free of charge or for less than the arms length price for which he would have charged the buyer.
3. Royalties or License fees – Fees that the buyer must pay directly or indirectly as a condition of sale for export to the United States.
4. Packing Costs – Any costs incurred by the buyer for labor and materials to make them ready for exportation.
5. Proceeds of subsequent sale – Generally, if subsequent to the importation an importer pays or is required to pay more for the imported goods than was declared at the time of entry, those additional payments are part of the price paid for the goods.
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