Primary Valuation Method - Transaction Method Flashcards
TV - What price is classed as the transaction value?
Price actually paid for the goods when sold for import.
Price must be adjusted to include other costs incurred by the buyer
Can a lower value than current market value be accepted as the transaction value?
Yes - provided the price is the agreed upon price between the buyer and seller.
Define price actually paid/payable
As well as the cost of goods, all additional cost pertaining to the import the buyer is responsible for covering whether already paid or payable after import.
What following persons of which payments can be made are included in “Price actually paid or payable”
The seller - I.E cost of goods
Third party related to the seller - Export agent, shipping agent
Third party made to satisfy and obligation to the seller
Can goods price discounts be applied to price actually paid?
Yes, if there is a 35% discount for orders placed when the goods where order but the goods ship after the discount period, this ill still applied to goods value and transaction value for customs purposed.
IS the invoice value the price actually paid?
No, it is only the cost of goods and in some cases certain services.
IS the invoice value the price actually paid?
No, it is only the cost of goods and in some cases certain services. All payments by the buyer to the seller or a third party as a condition of the sale are incorporated in to the total payment made.
Activities undertaken on the buyers own account??
Activities not incorporated in amount actually paid such as. Marketing costs, testing and showroom preparation.
What transport costs are excluded in most cases?
any transport costs after importation are excluded regardless of who pays
what countries exclude transport from export rather than import
US, South Africa and Australia
Cost of construction, erection, assembly and maintenance?
If this is following importation these costs are not included - For instance if the seller sends out staff along with the goods to install, these costs are deducted
Charges for interest under financing agreement?
These charges can be left out if
Charges shown separately
Financing agreement is in writing
goods are sold at price declared
Charges for right to reproduce the goods in the UK?
Excluded provided they are invoiced separately
Buying commission?
Such as our (Bridgeway) mark-up on ECU costs, can be ignored if itemised separately to our mark-up
Duties and Taxes?
With DDP these costs are excluded from amount payable.
