The Value of an Accurate Commercial Invoice
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:
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
the price sold in the U.S. in its condition as imported, resale price is subject to certain deductions
cost of fabricated component + general & administrative costs + packing + profit + assist
Other Reasonable Methods to Determine Value