What is it and how the customs value determined?

General rules of foreign trade
General rules of foreign trade
20 August, 2019
Previous Permits for Importation and Exportation
Previous Permits for Importation and Exportation
20 August, 2019
What is it and how the customs value determined?

The customs value is the total value derived from all items that are sent, this determines the import duties to be paid who acquires shipping,  is the value per transaction.

How the customs value determined?

The World Trade Organization, states in agreement on customs valuation, a neutral system that conforms to the current realities of foreign trade; This agreement establishes that as a basic principle:

“Customs valuation must be based, except in certain cases, on the actual price of the goods under valuation, which is usually indicated on the invoice. This price, plus adjustments for certain elements listed in Article 8, is equivalent to the transaction value, which is the first and main method referred to in the Agreement.”

  • The settings listed in Article 8 are:
  • Commissions and expenses remuneration received by a broker or agent for service (brokerage).
  • Cost of packagings and related costs.
  • Certain services.
  • Canons and licensing rights.
  • Subsequent benefits.
  • Cost of Insurance, transport cost and related services caused by it to the place of importation.
  • Expenses incurred after importation.

There are six methods that can be used in case there is no transaction value or the transaction value is not acceptable as customs value, as a result of the price has been distorted by certain conditions; which are:

  • Transaction value. The price paid or full payment to pay for imported goods that make a buyer to the seller.
  • Transaction value of identical goods. Provided they are equal in all aspects, both physical characteristics such as quality and reputation, among other things.
  • Transaction value of similar goods. When they are very similar to the goods being valued, regarding its composition and characteristics, in addition to complying with the same functions, among other things.
  • Deductive value. If you can not determine the transaction value of the imported goods or identical or similar goods, determined with the unit price that will be sold, or based on similar to them in the country of importation.
  • Constructed value. It is the sum of the cost of production, ie it should include the value of materials, from raw materials, the place of production to manufacturing costs as labor.
  • Method of last resort. the value according to reasonable means consistent with the principles and general provisions of this Agreement and Article VII of the General Agreement on Tariffs and Trade (GATT) 1994 is determined.

Royal Courier Trades SA de CV, imports and exports international

 

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