CBP Updates its Valuation Encyclopedia

April 29, 2011 by Karen Marzullo|Top News

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

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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.)