Determining the proper customs value of imported goods is one of the most critical—and complex—responsibilities for US importers. US Customs and Border Protection (CBP) provides extensive guidance to help companies comply with valuation rules under the Tariff Act of 1930 and its amendments. Several core resources stand out as essential references for understanding valuation principles, assists, commissions, and deductions.
Customs Value: The Foundation of Appraisement
CBP’s Customs Value guidance outlines the six methods of appraisement, applied in strict order of preference. The starting point is almost always transaction value—the price actually paid or payable for goods when sold for export to the United States. This document also provides clarity on the treatment of assists, ensuring importers understand how to properly calculate value when the buyer supplies goods, services, or materials to the seller free of charge or at a reduced cost.
Customs Valuation Encyclopedia (1980–2021): A Comprehensive Reference
The Customs Valuation Encyclopedia is CBP’s most detailed reference on valuation matters. It compiles legal rulings and regulatory interpretations by CBP’s Valuation and Special Programs Branch. The encyclopedia is especially valuable for nuanced issues such as assists and buying commissions, providing detailed explanations of when these costs must be included in the customs value.
Buying & Selling Commissions
Commissions can significantly impact declared value, and CBP makes a distinction between buying commissions (generally not dutiable) and selling commissions (often dutiable). CBP’s guidance helps distinguish between legitimate buying agents and intermediaries acting on behalf of the seller, clarifying when commissions are excluded from customs value and when they must be treated as dutiable.
Bona Fide Sales & Sales for Exportation
One cornerstone of determining transaction value is whether a bona fide sale has occurred and whether that sale is truly for exportation to the United States. CBP’s dedicated guidance walks importers through how it defines bona fide sales, what evidence is considered persuasive, and how these determinations factor into First Sale for Export claims.
Proper Deductions for Freight & Other Costs
CBP offers direction on permissible deductions from the price actually paid or payable. These include freight, insurance, and other post-importation costs, provided they are identifiable and known at the time of entry. Properly applying these deductions helps importers avoid overpaying duties and ensures compliance with CBP’s valuation rules.
Why These Resources Matter
Valuation is often one of the most heavily scrutinized areas of customs compliance, with errors leading to penalties, audits, and financial risk. By leveraging CBP’s official resources—ranging from high-level valuation principles to detailed rulings—importers can better document their methodology, defend their declared values, and strengthen compliance programs.