Additional Charges to Vendor Not Excludable From Transaction Value, CBP Says

Fees and charges incurred by vendors after an international shipment of merchandise may not be excluded from the transaction value, CBP said in a recently released ruling dated Feb. 4. Furniture importer Bluestem Brands requested a CBP ruling on whether various fees that weren't included in the price actually paid or payable can be excluded from the transaction value as “costs incident to the international shipment of the merchandise.” CBP allows for some incidental shipment costs to be excluded from the transaction value.

Specifically, Bluestem asked about “document amendment charges, detention charges, switched bill of lading fees, and change of vessel fees,” which were a result of “delays in returning the loaded containers back to the Port for the originally intended vessel.” When the vendor is hit with such fees, “there is no change to the merchandise cost on the company’s purchase orders and the charges are paid by the vendor,” it said. The freight forwarder invoices listed those fees, CBP said.

All purchase orders were free on board (FOB) and “all costs until the goods were on board the vessel were included in the price actually paid or payable for the merchandise,” the company said. But, “since the document amendment charges, detention charges, switched bill of lading fees, and change of vessel fees are not included in the price actually paid or payable, they may not be excluded as costs incident to the international shipment of the merchandise,” CBP said.