Showing posts with label valuation. Show all posts
Showing posts with label valuation. Show all posts

Saturday, January 9, 2016

Join Me at ACI's Import Compliance Conference Jan. 22, 2016 Where I'll be Speaking on Classification



I'll be speaking on a panel at this event on advanced classifications on January 22, 2015.   You can enjoy a 10% discount when you register as my guest:

Guest Discount
Colleagues and cohorts may use code S10-823-823L16.S. The discount is 10% off the regular price. Here is the event information page, and here is the registration page.

In addition to my presentation, ACI has provided that:

The agenda will cover the most critical compliance issues impacting your import operations. The program has been uniquely designed to delve into your most pressing compliance issues through practical insights, case studies, Q&A and hands-on exercises. Key sessions include:
  • Advanced Topics in Customs Valuation- Focus on Post-Entry Price Adjustments, Related Party Transactions, Assists and Other Complex Issues that Can Lead to Costly Mistakes

  • Advanced Topics in Classification – How to Decipher Intricate Classification Issues

  • Statistical Sampling in Prior Disclosures: Understanding the Methods and Benefits while Avoiding Common Errors

  • How to Properly Classify and Value Goods Related to Research & Development

Look forward to seeing you there!

Monday, April 13, 2015

Tips for the New Exporter Expanding in to the U.S. Market

This article was written for UK Trade and Investment to provide some tips to new UK exporters selling through the platform "Newegg" for delivery to your average American household.



Think being small means you don’t matter?  Think again!

All shipments arriving from outside of the United States pass through US Customs and the last thing you want to be is a company who is on their list of foreign suppliers to pay attention to.

You further don't want to be the supplier that creates a problem for your U.S. buyer as it could destroy your relationship with the buyer as well as harm your reputation and detract others from buying from you.
You therefore want to have your "ducks in order" with regards to legal compliance of the products you're selling into the US market, even if you're doing so in small quantities.
 Here are 5 tips to help you do that:

1) Recognize that the law applies to those who are selling and even offering to sell in the U.S.

·       That means that even if you have not sold anything, just by virtue of offering the merchandise for sale, it requires compliance with US laws.

·       Keep in mind that each shipment adds to your supplier profile with US Customs.  Though you may start out with “Newegg,” as your business expands your shipments to the U.S. will grow too and your sales here form a part of your export history recorded with U.S. Customs.

2) Understand that many of the products you want to sell may require testing and certification as to compliance with the U.S. law(s) over that category.  For example:
  • ·      The US Consumer Product Safety Commission has oversight of many of these laws and you can go to www.cpsc.gov to learn more about how their rules might apply to your products, including toys and other children’s products
  • ·      The US Food and Drug Administration has oversight of many food, health and beauty products, including cosmetics
  • ·      The US Federal Trade Commission has oversight of clothing and home fashions, as well as marketing claims which may be placed on packaging or temporary labels 

3) Remember that compliance with these laws is required prior to its importation into the U.S.
  • ·      While you may think of yourself as “just a seller,” if you’re selling to an individual, remember that they are relying on you to sell them a safe product that complies with U.S. law
  • ·      If you’re selling to a reseller, or are trying to sell to one, then they may request from you proof of your compliance with U.S. laws, so you’ll need to have your conformity certificates in order to provide them to those vendors relying on you. 

4) Product compliance aside, there are import protocols which must be complied with such as the proper marking and valuation of the product, as well as invoicing so that US customs can asses the appropriate amount of duties on that particular product.

5) Remember, even though a shipment which has a value not exceeding $200 can enter the U.S. free of duties and other taxes, the marking, valuation, invoicing and product compliance rules all still apply and again, all of these must be correctly done when you (the exporter) ship your product out for export.
  • ·       A watch for example, not only has multiple requirements in terms of marking different parts of it with its country of origin information, declaring a watch’s value is overly complicated and so both the physical stamping of the watch parts as well as the invoice need to be prepared in such a way that it meets US Customs regulatory compliance standards.

Questions/comments?  Post below or email Deanna at clark.deanna@gmail.com

Learn more at www.fashioncompliance.com or
Tweet us @fashcompliance on www.twitter.com or


Thursday, January 31, 2013

What Is a "Sale?" (US Customs' View of It, That Is...)

Here in NYC we are wrapping up the season of winter sales (which, as an aside, have been pretty fun to shop), but this has nothing to do with what a “sale” is when it comes to importation as this concept does not relate to discounted merchandise.

A “sale” in Federal Court language is the transfer (or “passage”) of title from one party to another for “consideration.”


In everyday language, it means where I obtain something belonging to someone else in exchange for something else.  For example, trading money (i.e., purchasing) for a cashmere sweater from Bloomingdale’s, which is likely to be discounted now given the winter sales season but alas, I digress…


Having a “sale” is relevant for valuation purposes of an imported product.  This is because duties are collected on the value of merchandise which is typically identified in a commercial invoice.  Where a part of the product is supplied by the importer and the value for this is not accounted for, it can lead to an incorrect declaration and hence, an inaccurate calculation on the collection of customs duties which must be paid to US Customs when goods are entered into the US.

A sale must therefore be identifiable.

While US Customs uses no single factor as evidence, acceptable proofs of such exchange include payment by check, bank transfer, or such other commercially acceptable means of payment.  The payment must also be made for the imported merchandise at issue.  Therefore, a general transfer of money from one corporate entity to another – which cannot be linked to a specific import transaction – would not likely demonstrate the passage of title.

Lastly, when deciding whether a sale happened or not, US Customs will look at whether the circumstances of the transaction indicate that the parties are functioning as buyer and seller.  While this is normally not difficult to identify when unrelated parties are doing business (even at the most basic level like what you would find on www.craigslist.org), when the parties are related such a clearly identifiable transaction isn’t always clear, which could lead to inaccurate value declarations as described above.

Questions/comments?  Post below or email me at clark.deanna@gmail.com

Follow me on twitter @fashcompliance
ciao ciao!