Customs Valuation 101

Customs valuation is a procedure to determine the customs value of imported goods. The customs value is essential to calculate the total duty to be paid on an imported good and the United States currently maintains and enforces a rigorous valuation system.

Importers are Responsible for Valuations

Customs and Border Protection (CBP) hold the importer of record (IOR) responsible for the accuracy of the declared value. Similar to paying taxes, the onus is on the IOR to know how much to pay, and the the IOR for reporting an incorrect value.

To put it into the words of CBP there’s a “shared responsibility” where the IOR is responsible to know and understand the applicable rules and regulations (and to review CBP’s “informed compliance” publications) and as a result value their imported goods properly. Valuation is part of an importer’s duty to exercise “reasonable care.”

Ensuring the value reported to CBP is accurate is important not just for CBP compliance but also for Census trade data. Valuation information submitted to CBP is utilized by the U.S. Census Bureau to compile trade statistics. Businesses and policymakers rely on this data to make critical business and trade policy decisions.

For more information on U.S. trade data, check out our Introduction to U.S. Trade Databases article.

Valuation Methods

In practice, 90%+ of imports use the transaction value valuation method. The transaction value is “the price actually paid or payable for imported merchandise when sold for exportation to the United States” and certain statutory or dutiable additions. The “price […]

By |2023-11-20T13:19:05-05:00November 20, 2023|Import|0 Comments

Should You Get a Binding Ruling?

What is a Binding Ruling?

Pursuant to the Customs Modernization Act, when importing merchandise into the U.S., it is now the responsibility of the importer of record to use “reasonable care” to “enter,” “classify,” and “value” the goods and provide any other information necessary to enable U.S. Customs and Border Protection (CBP) to properly assess duties, collect accurate statistics, and determine whether all other applicable legal requirements are met.

A binding ruing request can be extremely beneficial to importers, because it can provide them with certainty regarding concerns they may have about their merchandise. […]


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