Limitations Of Transaction Value Flashcards
4 cases where TV method Can’t be used
Good have not been sold for export
TV value does not meet four basic conditions
Adjustments to price payable not support by data
Customs office questions the transaction value
Limitation one - No Sale For Export - 3 requirements overview
There must be sale
The sale but be for export to country of implementation
Must be possible to determine price paid
Limitation one - Title to the goods - When is transferred
Payment is made (Not always)
Assumed risk of loss
Acquires title to
Limitation One - Risk of loss
How can you determine the point of transfer
Using Inco terms, delivery terms, customs documnets.
Limitation One - Where No Sales Exists
WCO examples of what does not constitue a sale
FOC - Free of charge
Consigmenets sold supplier account
Leeased goods
Loned goods
Limitation Two - Four conditions
What are the four conditions that must be met for TV to be used?
No conditions for the use of goods once sold
No conditions on the price making TV undeterminable
No accrual of proceeds to go back to the seller
Buyer/seller not related or if they are it does not affect the price.
Limitation 2, restrictions
There should be no restrictions on use other than?
required by law/public authority
Limit to geographical area
Restrictions that do not affect goods value, - no sellin proir to fixed date
Limitation Two, Sale subject to condition
3 examples where a conditon make the sales value imposible to determine
The seller establishes the price of the imported goods on condition that the buyer will also buy other goods in a specified quantity
The price of the imported goods depends on the price(s) at which the buyer of the imported goods sells other goods to the seller of the imported goods
The price is established based on a form of a payment extraneous to the imported goods, such as where the imported goods are semi-finished goods that have been provided by the seller on condition that he will receive finished product in a specified quantity.
Limitation 2 - Subsequent Proceeds
No acrual of proceeds to go back to the seller, example?
An example of a “subsequent proceed” is where the sale for export is based on the payment of a fixed amount at the time of sale and a further payment at the time the goods are resold in the country of importation.
Limitation 2 - Related parties
Proving a relationship does not affect the price
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the transaction value of identical (see paragraph 4.2) or similar (see paragraph 5.2) goods exported to the UK, in sales between buyers and sellers who are unrelated
the customs value of identical or similar goods arrived at under Method 4 (see section 6)
the customs value of identical or similar goods arrived at under Method 5 (see section 7)
Limitation 3 - Objective and quantifiable data
How can adjustments to TV value not alow for the TV value method to be used
If adjustments to the trnasaction value canot be quatified
Limitation 4 - Customs rights to reject values
What right do customs have to reject a transaction vlaue
On a case by case basis, after examining documents and explanations from the importer,
