Meaning
Federal regulations governing the appraisement and classification of imported merchandise establish the legal framework for customs valuation in the United States. Under US CBP 19 CFR 152, customs officials determine the transaction value, transaction value of identical merchandise or transaction value of similar merchandise. This regulation applies to all commercial entries imported into the United States.
The appraisement process stops when a final liquidated value is determined.
Valuation Method
The primary method of valuation is the transaction value, which is the price actually paid or payable for the merchandise when sold for export to the United States. If the transaction value cannot be determined, the regulation outlines alternative methods that must be used in a specific order. These alternatives include the deductive value and the computed value.
Under us cbp 19 cfr 152, importers must provide documentation to support their declared values.
Duty Assessment
Customs duties are assessed based on the classified tariff rate applied to the appraised value of the merchandise. Appraisers review the invoices and contracts to ensure that all dutiable costs, such as royalties or packing costs, are included in the transaction value. This assessment occurs at the port of entry or through a post-summary audit.
The assessment determines the final amount of duty the importer must pay.
Administrative Review
Importers have the right to file protests if they disagree with the customs appraisement or classification. The protest must be filed within 180 days of liquidation to be considered for review. This administrative process allows for the correction of errors before any legal action is taken.
