Packing costs
•
destination
Inland freight to shipment
•
buying commissions)
Selling commissions (excluding
•
exports
Sales proceeds tied directly to
•
country of import
Design costs incurred outside
•
to foreign manufacturer (Assists)
Material and equipment provided
•
Royalties and license fees
•
additional costs, such as:
sold for export and may include
actual price paid for the goods when
method, which is determined by the
*Transaction Value is the preferred
6
5
4
3
2
1
Other
Fallback
Residual
Computed
Deductive
Transaction Value of Similar Goods
•
Transaction Value of Identical Goods
•
Transaction Value*
for customs authorities:
Six methods used to value a company’s products
from 430
OVER 2019
AN 80.3% INCREASE
2,121
$77.7 million
In 2022, CBP collected
trade penalties
completed audits and issued a total of
39.1 million
FROM 2019
A 55.5% INCREASE
$3.35 trillion
$111.8 billion
In 2022, CBP collected
goods entries worth
in duty, taxes, and fees from
time-consuming, duty-recovery applications
Overpayment of duties and taxes that will require
•
like duty arrears and penalties
Retroactive assessments leading to increased costs
•
Customs audits (including a five-year review of entries)
•
duties and taxes significantly.
Accurately determining the value of goods can help importers reduce their
Valuation
Failing to properly value imported goods can lead to:
of the sale, but happen after the import, become a part of the price paid/payable.
Materials, plans, or tools supplied to the vendor/manufacturer for production as a condition
•
Assists and subsequent proceeds
allowances are not valid.
Only exact freight amounts substantiated by invoices can be deducted – estimates or freight
•
Direct and indirect transportation costs
country must be added to the customs value.
Fees for non-resident parent organization services billed to a subsidiary in a different
•
Management fees
the Purchase in Canada rules.
Goods sold by one party but shipped by a third party to Canada, for example, must follow
•
Drop shipments
which results in different additions, deductions, and definitions of price.
Different guidelines and legislation are used for taxation pricing than for customs pricing,
•
Related-party transactions
goods by considering:
Working with a service provider helps businesses value their
PENALTIES
SURPRISE
ARE AT RISK OF
DUTIES PAID
PREVIOUS
INTERESTS ON
COULD ACCRUE
their imports (past and current), they:
cannot provide proper documentation for
In such a scenario, if a customer/client
Services Agency?
the Canada Border
Party Transactions by
categorized as Related
investigated, they are
companies are
more related
If imports from two or
Did you know:
*CBP Yearly Update 2022
*CBP Yearly Update 2022
Free Trade
Agreements
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