CBP Updates its Valuation Encyclopedia

U.S. Customs and Border Protection has posted an updated version of its informed compliance publication entitled Customs Valuation Encyclopedia (1980-2010).

CBP’s Valuation and Special Programs Branch, has prepared this Customs Valuation Encyclopedia (1980-2010) to assist the trade community with valuation. The ICP was first issued in 1990 and was revised in January 2001, January 2004, and December 2010.

The ICP provides information on the following:

Assists

• Introduction
• Apportionment of Assists
• Assist Definition
• Components Which are Destroyed, Scrapped, or Lost
• Consumed in the Production
• Costs of Acquiring Assists
• Depreciation of Assists
• Directly or Indirectly
• Drawback on Assists
• Engineering, Development, Artwork, Design Work Necessary for the Production
• Equipment
• Free of Charge or at a Reduced Cost
• Inspection Services
• Management Services, Salaries
• Materials, Components, Parts, and Similar Items Incorporated in the Imported Merchandise
• Offsetting Overpayment of Duties
• Payment to Seller
• Proration of Assists
• Supplied by the Buyer
• Testing Costs
• Tools, Dies, Molds, and Similar Items Used in the Production
• Transportation Costs
• Use in Connection with the Production or the Sale for Export
• Value of Assists, (i.e., Cost of Acquisition or Cost of Production)

Buying Commissions

• Introduction
• Bona Fide Buying Commissions
• Commissions Paid to Agent for Acquiring Assists
• Control Over Agent
• Deducting Buying Commissions
• Dutiable as Part of the Price Actually Paid or Payable
• Factors to Consider
• Identity of Seller
• Totality of Circumstances

Cancellation Payments

• Introduction
• Contract Termination Fee
• Goods Not Imported
• Liquidated Damages and/or Penalties
• Minimum Quantity Cancellation Charges

Computed Value

• Introduction
• Assists
• Cost of Fabrication
• Election by Importer between Computed and Deductive Value
• Elements of Computed Value
• Merchandise of the Same Class or Kind
• Profit and General Expenses
• Severance Pay

Conditions or Consideration for Which a Value Cannot be Determined

• Introduction
• Transaction Value Inapplicable

Confidentiality

• Introduction

Consignments

• Introduction
• Transaction Value Inapplicable
• Transaction Value of Identical or Similar Merchandise

Countertrade

• Introduction
• Price Actually Paid or Payable

Currency Conversion

• Introduction
• Computed Value
• Formulas Used in Determining the Price Actually Paid or Payable
• Price Actually Paid or Payable

Deductive Value

• Introduction
• Deduction for Commissions
• Deduction for Usual Profits and General Expenses
• Duties Currently Payable
• Election by Importer between Deductive and Computed Value
• Related Party Transactions
• Resale in the U.S.
• Sales to Unrelated Persons
• Similar Merchandise
• Superdeductive Value
• Transportation Costs

Defective Merchandise

• Introduction
• Allowance in Price
• Defective Parts Returned to the U.S.
• Defective Merchandise Imported
• In-Transit Damage to Imported Goods
• Price Renegotiation
• Subsequently Imported Merchandise Discounted
• Warranty Provisions

Direct Costs of Processing

• Introduction
• Direct Costs of Processing Operations

Discounts

• Introduction
• Early Payment Discount
• Price Actually Paid or Payable
• Quantity Discounts
• Renegotiation of Price

Dutiable Value

• Introduction
• Appraised Value versus Dutiable Value

Duties and Taxes

• Introduction
• Appraised Value
• Currently Payable
• Deduction from Transaction Value
• Identified Separately Requirement
• Offsetting Overpayment of Duties
• Special Safeguard Duties (SSG)

Foreign Trade Zones

• Introduction
• Assists
• Design and Development Costs
• Merchandise Processing Fee
• Valuation

Formulas in Determining the Price Actually Paid or Payable

• Introduction
• Pre-Determined Formula Agreed to between Parties
• Currency Conversion
• Price Actually Paid or Payable
• Provisional Price
• Sufficient Information Available to Determine Price Actually Paid or Payable

Generally Accepted Accounting Principles

• Introduction
• Apportionment and Depreciation of Assists; 19 CFR 152.103(e)
• Computed Value
• Interest Expense
• Rejection of Accounting System
• Repairs
• Start-Up Costs
• Zero-Value Assists

Importer's Options

• Introduction
• Computed Value versus Deductive Value
• Elimination of Transaction Value

Indirect Payments

• Introduction
• Advertising Expenses
• Compensation for Assists as Indirect Payments
• Part of the Price Actually Paid or Payable as an Indirect Payment
• Reduction in Purchase Price for Settlement of a Debt

Insurance Costs

• Introduction
• Deduction for Cost of Insurance from C.I.F. Price
• Product Liability Insurance Payments

Interest Charges

• Introduction
• Pre T.D. 85-111, July 17, 1985
• T.D. 85-111, Dated July 17, 1985; Treatment of Interest Charges
• Clarification Regarding Treatment of Interest
• Assists
• Computed Value
• Financing Arrangement
• Separately Identified from Price

Invoicing Requirements

• Introduction
• Inconsistent Documents Presented at Time of Entry, T.D. 86-56
• Separately Identified from the Price Actually Paid or Payable

Lease Transactions

• Introduction
• Elimination of Transaction Value
• Reasonably Adjusted Transaction Value

North American Free Trade Agreement (NAFTA)

• Introduction
• Accumulation Provision
• Change in Tariff Classification
• De Minimis Rule
• Regional Value Content

Notice

• Introduction

Packing Costs

• Introduction
• Addition to Price Actually Paid or Payable
• Hang Tags
• Packed Ready for Shipment to the U.S., Seaworthy Condition
• Packing Costs Unavailable
• U.S. Packing

Post-Importation Charges

• Introduction
• Construction, Erection, Assembly, or Maintenance Charges
• Subsequent to Importation
• Post-Importation Services
• Post-Importation Transportation
• Price Actually Paid or Payable

Price Actually Paid or Payable

• Introduction
• Additional Payments Made by the Buyer to the Seller; Total Payment
• Advertising/Marketing Costs
• Allowance in Price Actually Paid or Payable
• Assembly of Merchandise
• Benefit of Seller
• Cancellation Payments
• Charges Identified Separately from the Price Actually Paid or Payable
• Charges Incident to the International Shipment of the Imported Merchandise
• Direct or Indirect Payments
• Discounts
• Inspection Charges
• Insufficient Information to Determine the Price Actually Paid or Payable
• Interest Charges
• Invoice Price
• Payments to a Third Party
• Payments Unrelated to the Imported Merchandise
• Post-Importation Services
• Price Renegotiation
• Proceeds of a Subsequent Resale
• Selling Commissions
• Testing Costs
• Time of Payment
• User Fee
• U.S. Retail Price
• U.S.-Sourced Merchandise
• Warehousing Charges

Proceeds of a Subsequent Resale

• Introduction
• Addition to the Price Actually Paid or Payable
• Transaction Value, Sufficient Information

Prohibited Appraised Values

• Introduction
• Two or More Values

Quota Charges

• Introduction
• Free-Quota Price Manipulations; T.D. 86-56
• Payments for Quota Made Directly to the Seller
• Payments to Unrelated Third Parties
• Quota Holder Acting as "Straw" Seller

Rebates Subsequent to Importation

• Introduction
• Discounts
• Formula Used in Determining Transaction Value
• Free-Quota Price Manipulations; T.D. 86-56
• Post-Importation Refund
• Price Actually Paid or Payable
• Price Renegotiations

Reconciliation

Related Party Transactions

• Introduction
• Control
• Definition of Related Parties
• Examination of the Circumstances of the Sale
• Rejection of Transaction Value
• Sales to Unrelated Buyers
• Test Values
• Transfer Prices

Repairs

• Introduction
• Price Renegotiations
• Repairs in the U.S.
• Warranty Provisions
• Value of Repairs for Merchandise Damaged In-Transit

Restrictions on the Use of Imported Merchandise

• Introduction

Right of Appeal

• Introduction

Royalty Payments and License Fees

• Introduction
• Direct Costs of Processing
• Price Actually Paid or Payable
• Proceeds of a Subsequent Resale
• Related to the Imported Merchandise and as a Condition of the Sale

Sale for Exportation

• Introduction
• Assembly of Merchandise
• Bona Fide Sale
• Irrevocably Destined for Exportation to the U.S.
• Sale for Export to the U.S. Distinguished from Domestic Sale
• Sale Which Most Directly Causes Merchandise to be Exported to the U.S.
• Terms of Sale
• Timing of Sale
• Transaction Value Eliminated due to Lack of Sale
• Transaction Value Determination

Selling Commissions

• Introduction
• Addition to Price Actually Paid or Payable

Sequential Order

• Introduction
• Hierarchy of Valuation Methods

Software

• Introduction

Transaction Value

• Introduction
• Assists
• Condition or Consideration for Which a Value Cannot be Determined
• Consignments
• Countertrade
• Hang Tags/Labels
• Limitations on Use of Transaction Value
• Packing Costs
• Price Actually Paid or Payable
• Proceeds of a Subsequent Resale (i.e., Appropriate Adjustment)
• Related Party Transactions
• Restrictions on Disposition or Use of Imported Merchandise
• Royalty and License Fees
• Sale for Exportation to the U.S.
• Selling Commissions
• Unrelated Parties

Transaction Value of Identical or Similar Merchandise

• Introduction
• Consignment Transactions
• Exported to the U.S. at or about the Same Time
• Identical or Similar Merchandise
• Related Parties
• Sufficient Information
• Transaction Value Readily Available
• Two or More Values

Transparency

• Introduction

Transportation Costs

• Introduction
• Deductive Value
• Estimated Freight Costs versus Actual
• Foreign-Inland Freight Charges
• Freight and Related Charges Incurred in Transporting Assists
• International Freight Deduction
• Post-Importation Transportation
• Vessel Loading Charges

Treatment

Used Merchandise

• Introduction
• Depreciation Allowed for Used Merchandise
• Elimination of Transaction Value
• Waste Material

Value if Other Values Cannot be Determined

• Introduction
• Computed Value
• Defective Merchandise
• Foreign Trade Zone
• Previously Established Transaction Value, Reasonably Adjusted
• Sequential Order
• Used Merchandise
• Waste Material
• 19 USC 1500

Verification

• Introduction
• Insufficient Evidence
• 19 USC 1500

ICP Provided for Informational Purposes Only

CBP states that the information provided in this publication is for general information purposes only. CBP cautions that because many complicated factors can be involved in customs issues, an importer may wish to obtain a ruling under CBP Regulations, 19 CFR Part 177, or obtain advice from an expert (such as a licensed Customs Broker, attorney or consultant) who specializes in customs matters. Reliance solely on the general information in this ICP may not be considered reasonable care.

(See ITT’s Online Archives or 07/02/04 news, 04070205, for BP summary of the January 2004 version of this ICP.)