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The Value of an Accurate Commercial Invoice

April 27, 2017 by InterChez in InterChez, Tips To Ship By

A commercial invoice is required when shipping internationally. Customs will apply fees and duties to the shipment based on the description of the imported goods listed on the commercial invoice.

It is essential that the fair market value of the product is listed on the commercial invoice. If the product lost or damaged and a claim needs to be filed, the value on the commercial invoice dictates the amount paid out by the claim.

To determine what you should put as the value of your goods, you can start with the following questions.
1. For what price am I selling my product?
2. At what price did I purchase my product?
3. If it’s a sample or spare part, what would someone reasonably pay for just that part?

If you do not provide a value on your commercial invoice you may incur clearance delays and additional fees. Repeated violations may result in your freight being flagged for inspections.

Also, if no product value is provided, the CBP (Customs and Border Protection) reserves the right to calculate the value of the freight. Under the law, there are six methods that may be used to determine a value:

Transaction Value:
the value of imported merchandise is the price usually paid or payable for the merchandise

Transaction Value of Identical Merchandise:
the value given to an imported good based off of identical merchandise

Transaction Value of Similar Merchandise:
the value given to an imported good based off of the value of similar merchandise

Deductive Value:
the price sold in the U.S. in its condition as imported, resale price is subject to certain deductions

Computed Value:
cost of fabricated component + general & administrative costs + packing + profit + assist

Other Reasonable Methods to Determine Value

About InterChez

InterChez is a full-service national and international logistics, translation, and consulting company based in northeast Ohio. InterChez is proud to offer our clients technology-driven solutions that integrate and simplify complex global operations. Our proven dSEC principles – Design, Source, Execute, and Continuously Improve – complement our industry-specific experience, our innovation, and our dedication to excellence, enabling us to provide our clients with a competitive global advantage.

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