April Webcast Q&A Wrap-up

Presented by Denise Guzialek

Program Manager--Compliance Services

Copper Hill Incorporated

 

Q: I would like to start flagging my entries to file value recon. How do I go about setting this up?

A:  The first step is to contact your surety company to add a recon rider to your existing bond. Once this is complete, contact your broker to begin the application process to begin flagging your entries for value recon. Once your entries are flagged, you have 21 months to reconcile. You can work with your broker who can file recon entries with Customs with the corrected values.

 

 In the eyes of the U.S. Customs and Border Protection (CBP), valuation is critical.

Customs is the second largest collector of revenue in the United States. Incorrectly reporting valuation can lead to an underpayment, and also overpayment, of duty and fees.

 The Real World of Valuation Challenges

The predicament in getting an accurate valuation for CBP is in receiving pertinent background information for the product. Minor transactions can qualify as assists by CBP. “Assists” describe items of value that a supplier receives from a customer that aid in the production of goods that are subsequently sold/shipped to that customer. Examples of assists include molds, production tools, raw materials, supplies and parts used to produce the final product. The value of the assist is added to transaction value when calculating customs value.