Customs valuation involves the application of complex statutory formulas to determine the dutiable value of imported merchandise. The manner in which import transactions are structured and documented frequently affects dutiable value. Careful attention to structure, documentation and record keeping can result in substantial duty savings and penalty avoidance.
Intercorporate relationships can also affect the valuation of imported merchandise for duty assessment purposes. CBP scrutinizes related party transactions to determine whether the relationship influenced the price paid for the imported merchandise. Customs valuation should be coordinated with Internal Revenue Service concerns as the law requires parity between a product’s inventory basis for tax purposes and the value declared at the time of importation.
We work closely with tax counsel to maximize tax and customs benefits while ensuring compliance with all applicable rules and regulations. A joint review and analysis of a firm’s customs and tax structure can identify strategic opportunities which can yield meaningful tax and duty savings.