CB6u—Intro to U.S. Customs Brokerage, Part 6: Customs Appraisement, Value and Duty Calculation

Subscriber price: $82.00, Non-subscriber price: $121.00
Estimated total study time: 5 hours 29 minutes [Enroll now]

This the sixth of the nine-part series of introductory courses in the practical work of U.S. customs brokerage.This course provides a basic understanding of the six methods of appraisement for valuation and duty calculation. These methods of appraisement form the basis of appraisement that the World Trade Organization created so that all importers are treated fairly. Since transaction value is the most common type of appraisement used, there is more comprehensive coverage of the allowed additions and subtractions from the price paid or payable.

Customs Appraisement, Value and Duty Calculation is a segment taken from the sixth course in the Intro to U.S. Customs Brokerage series covering Transaction Value and ABI Entry Processing.

Important: This course can be taken out of sequence if so desired.

Entry Summary Overview; Valuation of Goods

There are 6 different methods that CBP uses to appraise the value of goods so that all importers are treated fairly. In this lesson we will present the basics of the invoice price paid or payable and currency conversion.

(Estimated study time: 53 minutes)

Methods of Appraisement; Adjustments to Transaction Value-Additions

In this lesson we will focus on the most widely used and preferred method of valuation and appraisement, transaction value. This lesson will review the conditions for using transaction value and describe the dutiable charges. These include indirect payments, parts and cost of assembled goods and other dutiable additions to the price actually paid or payable.

(Estimated study time: 52 minutes)

Methods of Appraisement; Adjustments to Transaction Value-Subtractions

Continuing with the most common method of appraisement, transaction value, we review the deductions from the invoice price.

(Estimated study time: 1 hour 7 minutes)

Other Methods of Appraisement

There are circumstances that require CBP to base their appraisement on other methods. These other methods include: transaction value of identical or similar merchandise, deductive or computed value, or values if other values cannot be determined. We will cover each of these briefly, in turn.

(Estimated study time: 42 minutes)

Rates of Duty

In order to determine the proper duty rate it is important to be able to read all of the parts of the HTSUS. Different rates of duty columns mean different things. There are codes called special program indicators that increase or decrease normal trade relation duty rates. It is also essential to understand circumstances where articles are exempted from duty or allowed to be commingled together. This lesson addresses these topics.

(Estimated study time: 52 minutes)

Duty Computation and Worksheet Development

Duty rates come in many forms, some are based on a percentage of the net entered value and some are compound and complex. Taxes may apply to some types of goods like alcohol. Trade agreements affect the duty computation and there is special treatment based on importer and disposition of goods. These will all be demonstrated in this lesson.

(Estimated study time: 1 hour 3 minutes)