Tips for Studying Valuation

For the last few months, we have devoted Monday’s blog to issues related to valuation of imported merchandise. Last week the blog addressed duties and taxes. The answer to last week’s question can be found at the end of this article. As we discussed in the first article in this series, both importers and brokers must have a good understanding of valuation and how to apply it to a variety of situations. Over the past few months, we have provided some information about methods of valuation and components of valuation, as well as some examples. This week, we will conclude our valuation series by providing some tips for studying valuation.

· Gather resources such as the Valuation Encyclopedia and Informed Compliance Publications.
· Read the blogs in this series; they appear on Mondays from March 9 to June 1.
· Read Part 152 of the CBP Regulations.
· Take a valuation course. (See www.bcplearning.com for a sample.)
· Learn the methods of valuation, focusing on why each one is used.
· Learn the components of valuation.
· Create fact sheets summarizing what you have learned.
· Create a process/checklist for verifying the value of imported goods. This list will likely include a review of the purchase order, commercial invoice and accounts payable.
· Create procedures for certain key valuation topics such as declaring assists, deducting non-dutiable charges and converting foreign currency.
· Create presentations and tools for use in training other departments with valuation responsibilities such as purchasing and finance.
· Compile all of your resources into a valuation guide to share with your team and other departments having responsibilities related to valuation .

This concludes our series on valuation. Join us next Monday as we start a new series. The topic has not yet been determined so submit your suggestions in the next few days.


Answer to Duties & Taxes Question – Monday May 25, 2009

Question 58 October 2005
$100,000 - $6,000 (frt) - $850 (ins.) = $93,150 6.5 + .21 +.125 = 6.835% (duty paid)
$ 93,150/1.06835= $87,191