ADUANAS RECAP - EXTRA

Transaction Value

Actual price paid or payable shown on the invoice plus adjustments

Transaction Value Conditions

Must be a sale for export, no restrictions, relationship does not influence price

Transaction Value Includes

Freight, insurance, packing, royalties, assists before crossing border

Transaction Value Excludes

Costs incurred after importation

Transaction Value of Identical Goods

Value of identical goods imported from same country, producer and time period

Transaction Value of Similar Goods

Value of goods with similar characteristics and same function

Deductive Method

Starts from resale price in importing country minus costs, profit, taxes and transport

Computed Method

Starts from factory cost plus materials, labor, overhead, profit and transport

Fall-back Method

Last valuation method using reasonable available information

Wholly Obtained (WO)

Goods entirely obtained in USMCA territory according to Article 4.3

Examples of Wholly Obtained

Animals born and raised, plants harvested, minerals extracted, fishing in territorial waters

Scrap and Waste

Scrap formed during production can be considered wholly obtained

De Minimis

Allows a good to qualify as originating if non-originating materials do not exceed 10%

De Minimis Percentage

Maximum 10 percent non-originating content

QVC (Qualifying Value Content)

Requires a minimum percentage of regional content

RVC Transaction Value Formula

(TV − VNM) / TV × 100

RVC Net Cost Formula

(NC − VNM) / NC × 100

CC (Change of Chapter)

Change at the 2-digit HS level and biggest transformation

CTH (Change of Tariff Heading)

Change at the 4-digit HS level

CTSH (Change of Tariff Subheading)

Change at the 6-digit HS level

HS Rule 1

Titles of sections and chapters are for reference only and have no legal value

HS Rule 2(a)

Incomplete or unassembled goods with essential character classify as complete

HS Rule 2(b)

Reference to a material includes mixtures and combinations of materials

HS Rule 3(a)

The most specific description prevails

HS Rule 3(b)

Classify goods by the component that gives essential character

HS Rule 3(c)

If unresolved classify by the last numerical order

HS Rule 4

Classify goods by the most similar or most akin product

HS Rule 5(a)

Specially shaped cases for long-term use classify with the product

HS Rule 5(b)

Normal packing materials classify with the goods

HS Rule 6

Classification at subheading level only comparing subheadings at the same level

Rule 3 Priority Order

Specific description then essential character then last numerical order

Fishing Territorial Waters

Fishing in territorial waters qualifies as wholly obtained

Fishing International Waters Non USMCA Flag

Does not qualify as wholly obtained