In: Finance
Explain the transaction value used by US customs.
The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts equal to:
A)The packing costs incurred by the buyer.
B)Any selling commission incurred by the buyer.
C)Thevalue, apportioned as appropriate, of any assist.
D)Any royalty or license fee that the buyer is required to pay, directly or indirectly, as a condition of the sale.
E)The proceeds of any subsequent resale, disposal, or use of the imported merchandise that accrue, directly or indirectly, to the seller.
These amounts (items A through E) are added only to the extent that each 1) is not included in the price, and 2) is based on information accurately establishing the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of appraisement, in order of precedence, must be considered.