Customs Valuation Rules Export

Customs Valuation Rules Export

The calculated value, the most difficult and rarely used method, determines the customs value on the basis of the cost of production of the goods being valued, plus an amount of profit and overheads, which is generally reflected in the exporting country`s sales to the importing country of goods of the same class or type. The calculated value is the sum of the following: &nbsp George Tuttle Law Offices helps importers determine the correct declared value for the goods and avoid costly penalties. In addition, importers can achieve significant savings by reducing tariffs by improving imported goods. According to the Agreement, customs authorities may not add to the transaction value of a product – other surcharges are not permitted: for the purposes of these Rules, persons are considered “related” only if: – 2) At the request of an exporter, the competent official informs the exporter in writing of the reason for doubts as to the veracity or accuracy of the value declared by that exporter for the exported goods and gives an opportunity reasonable to: be heard before a final decision is taken under sub-rule (1). Customs valuation based on the transaction value method is largely based on the seizure of importer documents. Article 17 of the Agreement confirms that Customs administrations have the right to ensure the accuracy or correctness of any declaration, document or declaration. A decision of the Marrakesh Customs Valuation Committee on cases where Customs administrations have reason to doubt the veracity or accuracy of the declared value specifies the procedures to be followed in such cases. As a first step, the customs authority may require the importer to provide an additional explanation that the declared value corresponds to the total amount actually paid or payable for the imported goods. If reasonable doubt persists after receiving additional information (or in the absence of a response), Customs may decide that the value cannot be determined using the transaction value method. Before a final decision is taken, the customs authorities must communicate their reasons to the importer, who in turn must have a reasonable period of time to reply. In addition, the reasons for the final decision must be communicated in writing to the importer. (ii) customs duties, taxes and customs clearance duties on equipment paid in the territory of one or both Parties, with the exception of duties and taxes that are remitted, refundable, refundable or otherwise refundable, including the credit on taxes paid or payable; and (1) In these Regulations, unless the context requires otherwise, – Is the transaction value calculated in the same way for identical goods if the goods are the same in all respects, including physical characteristics, quality and reputation; are manufactured in the same country as the goods being valued; and are manufactured by the manufacturer of the goods being valued.

For this method to be used, the goods must be sold for export to the same importing country as the goods being valued. The goods must also be exported at or approximately the same time as the goods being valued. Any enterprise involved in international trade may benefit from the fair and predictable rules of this Agreement for the valuation of goods for customs purposes. Sufficient information shall be available to be able to make specific adjustments to the price paid or payable in accordance with Article 8, such as. B: commissions and brokerage fees, with the exception of purchase commissions for packaging and container costs and charges, fees and subsequent receipts shall bear the costs of transport, insurance and related costs to the place of importation, if the Member makes the valuation on the basis of the CIF, but not: post-importation costs (customs duties, transport, construction or assembly) (Annex I, note 3 to Article 1). (i) this rule itself does not provide for a valuation method, it provides for a mechanism and procedure for rejecting the declared value in cases where there are reasonable doubts that the declared value does not represent the transaction value; If the specified value is rejected, the value is determined one after the other according to rules 4 to 6. The Agreement establishes a Customs Valuation Committee composed of representatives of all Members to enable Members to consult each other on matters relating to the administration of the customs valuation system by each Member or to promote the objectives of the Convention. The agreement identifies certain situations in which the transaction value of imported goods is unacceptable for customs purposes. These occur: if there are restrictions (with a few exceptions) on the disposal or use of the goods by the buyer; if the sale or price of the goods is subject to a condition or consideration for which a value cannot be determined; if part of the proceeds from further use of the goods by the buyer accrues to the seller; or, with a few exceptions, if the buyer and seller are “related” (p.B. business partner, employer, employee, officer or director of each other`s business. The Agreement allows the legislation of the importing country to include the customs value or to exclude it from the customs value: (ii) The declared value shall be accepted if, after such examination, the competent official, in consultation with the exporter, is satisfied of the veracity or accuracy of the declared value.

Since the starting point for calculating the deductive value is the selling price in the importing country, various deductions are necessary to reduce this price to the corresponding customs value: commissions usually paid or agreed must also be deducted from the sum of profits and overheads related to sales; the usual transport costs and the corresponding insurance must be deducted from the price of the goods if these costs are generally incurred in the importing country; customs duties and other national charges due in the importing country as a result of the importation or sale of the goods shall also be deducted; If necessary, added value through assembly or further processing. 1. Subject to Rule 3, where the value of the exported goods cannot be determined in accordance with Rules 4 and 5, the determination shall be made by appropriate means in accordance with the principles and general provisions of those Rules, provided that the local market price of the exported goods cannot serve as the sole basis for determining the value of the exported goods. Under Article 5.1, the unit price at which the imported goods or like or like imported goods are sold in the largest total quantity is used as the basis for determining the value for duty. According to the Explanatory Notes to this Article, the largest total quantity is the price at which the greatest number of units are sold to self-employed persons at the first stage of trade after the importation at which those sales take place. To determine the largest total quantity, all sales are taken together at a given price, and the sum of all units of goods sold at that price is compared to the sum of all units of goods sold at a different price. The largest number of units sold at a price represents the largest total quantity. The Tokyo Round Customs Code concluded in 1979 or the GATT Article VII Implementation Agreement introduced a positive system of customs value based on the price actually paid or payable for imported goods. On the basis of the transaction value, a fair, uniform and neutral system of valuation of goods for customs purposes should be established, in accordance with economic circumstances. This value differs from the nominal value used in the definition of the Brussels value (BVD). As a stand-alone agreement, the Tokyo Round Evaluation Code has been signed by more than 40 parties.

3. Where the value cannot be determined in accordance with the provisions of sub-rule (1) and sub-rule (2), the value shall be determined successively in accordance with rules 4 to 6. (1) Subject to Rule 8, the value of the goods exported is the transaction value. 2. In determining the value of goods exported in accordance with sub-rule (1), the Registrar shall make such adjustments as he deems appropriate, taking into account relevant factors, including Article VII of the General Agreement on Tariffs and Trade, which establishes the general principles of an international valuation system. It clarified that the customs value of imported goods should be based on the actual value of the imported goods on which duty is levied or like goods and should not be based on the value of the goods of domestic origin or on arbitrary or fictitious values. Although Article VII also contains a definition of actual value, it nevertheless allows for the use of very different methods of valuation of goods. In addition, grandfathering clauses allowed for the continuation of old standards that did not even correspond to the new, very general standard. George Tuttle Law Offices also assist importers in preparing and submitting binding decisions to Customs in order to confirm the correct basis for valuing the goods and, if the goods are subject to an increase in value after importation, to challenge this increase through the administrative protest procedure. We negotiate value issues before the International Trade Court whenever necessary to ensure that our customers are treated fairly by customs. (b) `transaction value` means the value of the goods exported within the meaning of Article 14(1) of the Customs Law 1962 (52 of 1962). .

Share this post