TRANSACTION VALUE (unfinished)

A customs examiner at the Port of Manila is evaluating a shipment of imported textile machines declared at $50,000. Upon investigation, it is discovered that the buyer and seller are related companies under the same parent corporation. The seller provided the machines at a reduced price as part of an internal business arrangement. The buyer argues that the reduced price reflects a marketing incentive and not manipulation. Based on customs valuation principles, what must the examiner determine before accepting the declared value?

The examiner must determine whether the relationship between the buyer and seller influenced the price; if it did not, the transaction value may be accepted.

An importer purchased industrial pumps from Germany at a declared price of $10,000 per unit. Later, the customs officer found out that the seller had granted the importer an additional 5% discount on the condition that the importer also purchase spare parts from the same seller. The importer did not declare this conditional arrangement. What should the customs officer conclude about the acceptability of the transaction value?

The transaction value is not acceptable because the sale was subject to a condition that influenced the price and cannot be objectively quantified.

A Philippine importer supplied a foreign manufacturer with free molds and designs used in producing kitchenware for export back to the Philippines. The value of these molds was not included in the declared transaction value. Upon review, customs officials question the omission. How should the value of the molds be treated under customs valuation rules?

The value of the molds must be added to the transaction value as an “assist” since they were provided free of charge and used in the production of imported goods.

During a post-entry audit, it was discovered that a buyer paid royalties to a third party for the use of a patented process embedded in the imported goods. The payment was required by the seller as a condition for sale. The importer insists that royalties are not part of customs value. What is the correct principle to apply?

The royalty payment must be added to the customs value because it was a condition of the sale and related to the imported goods.

A shipment of imported electronic components was valued using the transaction value method. However, documentation showed that the goods were not sold but consigned to a distributor in the Philippines for testing and resale at a later date. The importer declared the value based on an estimated future price. What should the customs authority do?

The customs authority should reject the transaction value method since there was no actual sale for export; another method must be used sequentially.

A customs broker submits a declaration for imported furniture, but the declared invoice excludes the cost of packaging materials used in transport. Upon verification, customs finds that these packaging costs were paid separately by the buyer. How should these costs be treated in valuation?

The cost of packaging should be added to the transaction value as it is part of the total payment made for the imported goods.

A local importer declares the customs value of imported machinery without including international freight costs. The goods were transported by the importer’s own vessel, and no freight payment was made to a third party. How should the customs value be determined?

The actual transportation cost, including vessel operation and fuel expenses, must still be included in the customs value.

An importer from Japan sold identical mobile phones to two buyers—one related and one unrelated. The related buyer declared a lower price than the unrelated buyer for the same model. The customs examiner suspects undervaluation. What approach should be taken to verify the declared value?

The examiner should compare the related-party price to test values from sales to unrelated buyers to determine if the declared value closely approximates them.

An importer declared the value of a shipment of cosmetics based solely on the manufacturer’s invoice. Later, the importer admitted that a marketing service fee was paid directly to the seller’s affiliate abroad. This payment was not disclosed during declaration. What is the proper action of customs?

The marketing service fee must be added to the customs value if it benefited the seller and was related to the sale of the imported goods.

A customs officer encounters a declaration where the importer provided insufficient data for certain additions required under valuation adjustments, such as royalties and commissions. The importer claims the amounts cannot be determined. How should the customs officer proceed?

The transaction value must be rejected since objective and quantifiable data are required for all additions under the transaction value method.

An importer brings in spare vehicle parts from Korea. The customs officer notices that the goods were shipped with an insurance policy covering domestic transport within the Philippines. The importer insists that all insurance costs should be included in customs valuation. What is the correct determination?

Only the insurance costs incurred during international transport up to the Philippine port of entry should be included in the customs value.

A customs audit reveals that an importer paid additional royalties after importation for the continued use of a foreign brand’s trademark. These payments were not a condition of the original sale contract. The customs office questions whether to add them to the customs value. What is the proper ruling?

The royalties should not be added since they were not a condition of sale for export and were paid after importation.

A local company imports processed foods and later remits 10% of resale proceeds back to the foreign supplier as part of their distribution agreement. This arrangement was specified in the contract. How should this be reflected in customs valuation?

The remitted portion of resale proceeds must be added to the customs value since it accrues directly to the seller.

A shipment of machinery parts was declared using the transaction value method, but customs discovered that the buyer’s and seller’s declared relationship included a shared board of directors and inter-company control. The importer argues that this relationship is irrelevant. What should customs verify?

Customs should verify whether the relationship influenced the price through an examination of the circumstances of sale.

An importer purchases goods from two suppliers—one located in Taiwan and another in Japan. The goods from Taiwan could not be valued under the transaction value method due to missing invoices. The importer requests to use computed value before deductive value. What should customs decide?

Customs may allow reversal of methods four and five only if the importer requests and the Commissioner agrees that it will not cause valuation difficulties.

A customs officer is assessing imported computer hardware declared under Method One. However, the importer’s invoice includes costs for installation and maintenance services to be rendered in the Philippines. The officer questions whether these costs should be dutiable. What should be the decision?

The installation and maintenance costs performed after importation should be excluded from the dutiable value.

An importer supplied foreign manufacturers with free samples and engineering blueprints used for product design abroad. These design costs were incurred by the importer in the Philippines. The importer argues they should not be added to the customs value. What is the properruling?

The value of engineering and design work done outside the Philippines is dutiable; work done within the Philippines is not added to customs value.

A shipment of identical goods arrives under two separate import entries from the same supplier. The customs officer cannot determine the actual transaction value of one entry due to incomplete documentation. What valuation principle should be applied next?

The transaction value of identical goods from the same supplier should be used as the next sequential method.

During inspection, customs found that imported plastic products were invoiced at a price lower than market value. The importer stated the goods were promotional items and given as free samples. How should customs treat the declared value?

The transaction value method cannot apply since there was no sale; a subsequent valuation method must be used to determine dutiable value.

An importer paid for goods using a letter of credit and also settled part of the seller’s outstanding debt to another company on behalf of the seller. The importer did not include this debt settlement in the declared customs value. How should this payment be treated?

The settlement of the seller’s debt must be included in the customs value as part of the total price actually paid or payable for the imported goods.

A local trading company imported specialized drilling equipment from a related foreign supplier at a significantly discounted price. Customs officers suspected that the discount may have been influenced by their relationship, as the same supplier sold identical equipment to unrelated buyers at higher prices. What should customs determine before accepting the declared value?,

Customs must confirm that the relationship did not influence the price by examining the circumstances of the sale before accepting the declared value.

A customs broker handled a shipment of imported tools where the importer failed to include the cost of wooden crates used for packaging. The crates were purchased separately by the buyer for transport safety. What is the correct valuation treatment for these costs?,

The cost of wooden crates must be added to the customs value since packaging forms part of the total payment for the imported goods.

An importer declared machinery parts valued at $25,000, excluding $1,500 in ocean freight charges. The goods were transported under a CIF term, which includes cost, insurance, and freight. What should customs do upon discovering the exclusion?,

Customs must add the freight cost to the dutiable value since transportation to the Philippine port of entry is part of customs valuation.

A shipment of laboratory equipment was imported by a university at a discounted price, with the seller requiring the buyer to purchase software exclusively from its affiliate. The buyer did not declare this condition. What should customs conclude about this transaction?,

The transaction value is not acceptable because the sale was conditional on purchasing additional goods, which affected the price.

A Philippine importer provided a foreign factory with free dies and molds to manufacture plastic parts. The importer did not declare their cost, arguing they were merely tools. How should customs treat these items?,

The cost of the dies and molds must be added to the transaction value as assists used in production.

A company imported brand-name apparel and paid royalties to a trademark owner abroad, not the seller. The royalty payment was required under the sale agreement. What should customs do regarding the royalties?,

The royalties should be added to the customs value since they were a condition of sale and related to the imported goods.

An importer declared goods valued at $30,000 but could not provide supporting documents for certain commissions paid abroad. The customs officer requested proof, but the importer admitted the amounts were estimates. How should customs handle this case?,

The transaction value must be rejected because objective and quantifiable data are required for valuation adjustments.

A foreign supplier shipped food products to a Philippine distributor without a sales invoice, indicating the goods were for consignment. The importer declared a provisional value. How should customs proceed?,

Customs should reject the transaction value method since no sale occurred, then proceed sequentially to the next valuation method.

An importer failed to disclose that 10% of resale profits from imported beverages would be remitted to the foreign supplier as part of a distribution agreement. Customs later found this clause in the contract. How should this affect valuation?,

The 10% of resale profits must be added to the customs value since the proceeds accrue to the seller.

An importer used Method Five (computed value) before trying Method Four (deductive value) without approval. The importer argued it was more convenient. What should customs decide?,

Customs should disallow the use of Method Five first unless the importer formally requested and received approval for reversing the order.

A customs appraiser noticed that an importer included the cost of domestic transport from the Philippine port to the warehouse in the declared value. The importer claimed it was part of the total logistics cost. What is the correct treatment?,

The cost of domestic transport after importation must be excluded from the customs value since it occurs post-importation.

A cargo of electronic parts was insured for international transport and for inland delivery within the Philippines. The importer declared both as part of customs value. What adjustment should customs make?,

Only the portion of insurance covering international transport up to the Philippine port of entry should be included in the dutiable value.

A shipment of identical steel coils from the same supplier was imported under different invoices. One invoice was missing details. The importer requested to use the valuation of the other identical goods. What principle applies?,

The transaction value of identical goods may be used as the next method when the value of the current shipment cannot be determined.

An importer and seller were related companies, but the declared price matched the price charged to unrelated buyers for identical products. What should customs do in this scenario?,

Customs may accept the declared transaction value since it closely approximates the value of sales to unrelated buyers.

A customs officer is assessing imported heavy equipment, but the buyer’s invoice includes fees for technical training conducted after importation. The importer claims all charges should be included. What is the correct determination?,

The training fees must be excluded since they are services rendered after importation.

A shipment of finished furniture arrived with separate charges for container rental and handling at the foreign port. The importer excluded these costs from the declaration. What should customs do?,

The container and handling charges up to the port of entry must be added to the dutiable value since they are part of transport-related costs.

A local company imported branded watches and paid additional fees to use the brand’s logo on marketing materials. The payment was not a condition of sale. Should this fee be added to the customs value?,

No, the payment should not be added since it was not a condition of sale for export.

A customs broker discovers that imported textiles were shipped with both ocean freight and domestic inland freight from the supplier’s factory to the port of export. The importer only declared ocean freight. What adjustment should customs make?,

The inland freight from the supplier’s factory to the port of export must be included in the customs value.

An importer paid the seller through a bank transfer and also settled the seller’s outstanding warehouse fees with a third-party logistics firm. The importer did not report this additional payment. How should customs treat it?,

The warehouse fee payment must be added to the customs value since it was made on behalf of the seller.

A customs valuation officer finds that an importer used arbitrary estimates instead of verified cost data to declare assists and royalties. The importer argues it is acceptable for expediency. What should the officer decide?,

The officer must reject the transaction value since customs valuation requires objective and quantifiable data for all additions.

A customs examiner is reviewing an entry where the importer provided free engineering blueprints developed in Japan for a product manufactured abroad. The importer did not declare their cost, claiming the designs were of negligible value. What should customs decide?,

Customs must add the value of the blueprints to the transaction value since they were created outside the Philippines and used in the production of the imported goods.

An importer declared machinery valued at $100,000, excluding the cost of special pallets used for transport. The pallets were designed specifically for that machinery and returned to the seller after delivery. Should the cost be included?,

Yes, the cost of pallets must be added since they are necessary for the international transport of the imported goods.

A company imported medical devices and paid royalties to a patent holder that was unrelated to the seller. The royalty payment was not a requirement of sale but part of a separate licensing agreement. Should this royalty be added to the customs value?,

No, the royalty should not be added because it was not a condition of sale for export of the goods.

An importer paid a third-party consultant to assist with quality control before export. The seller was not involved in this arrangement. The importer argued that the consultant’s fee should not be included in customs valuation. What is the correct ruling?,

The consultant’s fee should not be included since it was not paid to or for the benefit of the seller.

A customs officer encountered a shipment where the declared transaction value could not be verified because the payment was made through multiple indirect bank accounts. The importer could not provide proof of payment. What should customs do?,

Customs must reject the transaction value since the price actually paid or payable cannot be substantiated.

A local company imported construction materials but claimed that post-importation installation costs should form part of the dutiable value. The customs auditor disagreed. Who is correct?,

The auditor is correct since post-importation installation costs are not included in the customs value.

An importer from the United States sold goods to its Philippine branch at a transfer price lower than production cost. Customs discovered that both entities are legally part of the same company. How should customs treat this?,

Customs should reject the transaction value since the buyer and seller are not separate legal entities and no genuine sale occurred.

A shipment of electronic parts included a separate charge for after-sales maintenance services. The importer claimed it should be dutiable as part of total product support. How should customs assess it?,

The maintenance service charge should be excluded because it applies after importation and is not part of the sale price of the imported goods.

A foreign manufacturer shipped garments to a Philippine buyer, who provided free fabrics and accessories used in production. The importer did not report these materials. What must customs do?,

Customs must add the value of the fabrics and accessories as assists used in the production of the imported goods.

An importer declared a batch of goods at $45,000 based on the seller’s invoice but failed to include $2,000 in bank transfer fees paid to settle the seller’s outstanding debts. Should customs include the $2,000 in valuation?,

Yes, the $2,000 should be included in the customs value as it was paid on behalf of the seller.

A shipment of chemical products was insured by the importer for both international and domestic transport. Customs requested proof of cost allocation, but the importer could not separate them. What should customs do?,

Customs should only include insurance costs up to the port of entry, excluding the unverified portion covering domestic transport.

A customs auditor reviewing a case noted that the importer’s declared value excluded molds previously used for production and then supplied again to the seller. The importer argued depreciation applied. What is the correct action?,

The depreciated value of the molds must be added to the customs value, adjusted based on their use.

A shipment of vehicle engines was declared using the transaction value, but customs discovered the seller required the buyer to pay additional advertising costs abroad. The buyer did not disclose this. How should customs treat the expense?,

The advertising cost must be added to the customs value since it was a condition of sale that benefited the seller.

A customs broker declared goods based on the price on the invoice but failed to disclose additional licensing fees paid by the importer to the same seller. Customs found this omission during audit. What is the proper treatment?,

The licensing fees should be added to the customs value because they were paid as a condition of sale for export.

An importer from Thailand requested that customs use the computed value method instead of the deductive value method, claiming the former yields more accurate results. Customs disagreed. Who is correct?,

Customs is correct because methods must be applied sequentially unless reversal is approved by the Commissioner.

A shipment of imported medical equipment was found to include pre-shipment testing fees paid to a foreign laboratory required by the seller. The importer excluded these from the declared value. Should customs include them?,

yes, pre-shipment testing fees must be added since they were incurred as a condition of sale for export.

A customs officer notices that the declared value of imported goods includes Philippine import duties and VAT. The importer argues this is to ensure full cost representation. What should customs do?,

Customs must exclude duties and taxes from the customs value because they are incurred after importation.

An importer declared goods valued at $20,000 but later admitted to paying an extra $3,000 to the seller for faster shipment processing. Customs questioned whether this should be included. What is the correct action?,

The $3,000 should be added to the customs value since it is a payment made for the benefit of the seller related to the imported goods.

A shipment of auto parts was found undervalued because the importer failed to disclose freight costs from the foreign port to the Philippines. Customs suspects intentional omission. How should this be handled?,

Customs should add the freight cost to the dutiable value and may initiate further investigation for undervaluation.

An importer supplied foreign manufacturers with free computer software for production but did not report its value, claiming it was intangible and nonphysical. Customs reviewed the files and found them essential for manufacturing. What is the correct ruling?,

The value of the software must be added to the customs value as an assist used in the production of imported goods.

A customs examiner is reviewing an entry where the importer provided free engineering blueprints developed in Japan for a product manufactured abroad. The importer did not declare their cost, claiming the designs were of negligible value. What should customs decide?,

Customs must add the value of the blueprints to the transaction value since they were created outside the Philippines and used in the production of the imported goods.

An importer declared machinery valued at $100,000, excluding the cost of special pallets used for transport. The pallets were designed specifically for that machinery and returned to the seller after delivery. Should the cost be included?,

Yes, the cost of pallets must be added since they are necessary for the international transport of the imported goods.

A company imported medical devices and paid royalties to a patent holder that was unrelated to the seller. The royalty payment was not a requirement of sale but part of a separate licensing agreement. Should this royalty be added to the customs value?,

No, the royalty should not be added because it was not a condition of sale for export of the goods.

An importer paid a third-party consultant to assist with quality control before export. The seller was not involved in this arrangement. The importer argued that the consultant’s fee should not be included in customs valuation. What is the correct ruling?,

The consultant’s fee should not be included since it was not paid to or for the benefit of the seller.

A customs officer encountered a shipment where the declared transaction value could not be verified because the payment was made through multiple indirect bank accounts. The importer could not provide proof of payment. What should customs do?,

Customs must reject the transaction value since the price actually paid or payable cannot be substantiated.

A local company imported construction materials but claimed that post-importation installation costs should form part of the dutiable value. The customs auditor disagreed. Who is correct?,

The auditor is correct since post-importation installation costs are not included in the customs value.

An importer from the United States sold goods to its Philippine branch at a transfer price lower than production cost. Customs discovered that both entities are legally part of the same company. How should customs treat this?,

Customs should reject the transaction value since the buyer and seller are not separate legal entities and no genuine sale occurred.

A shipment of electronic parts included a separate charge for after-sales maintenance services. The importer claimed it should be dutiable as part of total product support. How should customs assess it?,

The maintenance service charge should be excluded because it applies after importation and is not part of the sale price of the imported goods.

A foreign manufacturer shipped garments to a Philippine buyer, who provided free fabrics and accessories used in production. The importer did not report these materials. What must customs do?,

Customs must add the value of the fabrics and accessories as assists used in the production of the imported goods.

An importer declared a batch of goods at $45,000 based on the seller’s invoice but failed to include $2,000 in bank transfer fees paid to settle the seller’s outstanding debts. Should customs include the $2,000 in valuation?,

Yes, the $2,000 should be included in the customs value as it was paid on behalf of the seller.

A shipment of chemical products was insured by the importer for both international and domestic transport. Customs requested proof of cost allocation, but the importer could not separate them. What should customs do?,

Customs should only include insurance costs up to the port of entry, excluding the unverified portion covering domestic transport.

A customs auditor reviewing a case noted that the importer’s declared value excluded molds previously used for production and then supplied again to the seller. The importer argued depreciation applied. What is the correct action?,

The depreciated value of the molds must be added to the customs value, adjusted based on their use.

A shipment of vehicle engines was declared using the transaction value, but customs discovered the seller required the buyer to pay additional advertising costs abroad. The buyer did not disclose this. How should customs treat the expense?,

The advertising cost must be added to the customs value since it was a condition of sale that benefited the seller.

A customs broker declared goods based on the price on the invoice but failed to disclose additional licensing fees paid by the importer to the same seller. Customs found this omission during audit. What is the proper treatment?,

The licensing fees should be added to the customs value because they were paid as a condition of sale for export.

An importer from Thailand requested that customs use the computed value method instead of the deductive value method, claiming the former yields more accurate results. Customs disagreed. Who is correct?,

Customs is correct because methods must be applied sequentially unless reversal is approved by the Commissioner.

A shipment of imported medical equipment was found to include pre-shipment testing fees paid to a foreign laboratory required by the seller. The importer excluded these from the declared value. Should customs include them?,

Yes, pre-shipment testing fees must be added since they were incurred as a condition of sale for export.

A customs officer notices that the declared value of imported goods includes Philippine import duties and VAT. The importer argues this is to ensure full cost representation. What should customs do?,

Customs must exclude duties and taxes from the customs value because they are incurred after importation.

An importer declared goods valued at $20,000 but later admitted to paying an extra $3,000 to the seller for faster shipment processing. Customs questioned whether this should be included. What is the correct action?,

The $3,000 should be added to the customs value since it is a payment made for the benefit of the seller related to the imported goods.

A shipment of auto parts was found undervalued because the importer failed to disclose freight costs from the foreign port to the Philippines. Customs suspects intentional omission. How should this be handled?,

Customs should add the freight cost to the dutiable value and may initiate further investigation for undervaluation.

An importer supplied foreign manufacturers with free computer software for production but did not report its value, claiming it was intangible and nonphysical. Customs reviewed the files and found them essential for manufacturing. What is the correct ruling?,

The value of the software must be added to the customs value as an assist used in the production of imported goods.

A customs officer at the Port of Cebu encounters an importer who declared goods at a value lower than the international market price. The importer explains that the seller provided the goods as a marketing favor to encourage future orders. Customs questions the validity of the declared amount. What should be the officer’s ruling?,

The officer must reject the declared transaction value because it was influenced by non-commercial considerations and does not reflect the true price actually paid or payable.

A shipment of precision tools arrived from Japan, and the importer claimed a discount for bulk purchase. Upon review, customs found the discount was conditional on buying unrelated items from the same supplier. How should customs evaluate this declaration?,

Customs should disallow the discount and reject the transaction value since it was subject to a conditional arrangement that affected pricing.

An importer from Manila received free samples of perfume labeled as gifts but still attempted to declare them under the transaction value method. Customs questioned the basis for valuation. What principle applies?,

The transaction value method cannot apply because the goods were not sold; customs must proceed to the next appropriate valuation method.

A shipment of electronic gadgets included the cost of manuals printed in the Philippines and packaged with the goods after importation. The importer included the printing cost in the declared value. What is the correct approach?,

The printing cost should be excluded since it was incurred after importation and not part of the price paid for the goods.

A customs auditor found that an importer used approximated figures instead of verified production cost data for assists. The importer justified that precise records were unavailable. How should customs proceed?,

Customs must reject the transaction value because assists must be supported by objective and quantifiable data.

A local manufacturer imported components used in assembly lines. Customs found that the seller required the buyer to pay a separate fee for design rights before delivery. The importer did not disclose this payment. What must customs do?,

The design fee must be added to the customs value as it was a payment made as a condition of sale for export.

A shipment of agricultural machinery was shipped under CIF terms, but the importer removed the insurance cost from the declaration, claiming it was minor. Customs discovered a policy showing $1,200 insurance coverage. What should be done?,

The $1,200 insurance cost must be added to the customs value since it forms part of CIF terms and was incurred before arrival in the Philippines.

An importer declared a transaction value that excluded a $5,000 commission paid to a broker hired by the seller to secure the deal. The importer argued it was not his expense. How should customs treat this payment?,

The $5,000 commission must be added to the customs value since it was a selling commission paid for the benefit of the seller.

A customs officer reviewed a case where the buyer and seller were related through shared directors, but pricing matched independent sales data. What is the correct decision?,

Customs may accept the transaction value because the relationship did not influence the price and it closely approximates values from unrelated sales.

A Philippine company imported beverages from its foreign subsidiary. The declared value was far below market price. Customs asked for justification, but the importer provided none. How should customs determine dutiable value?,

Customs must reject the declared transaction value and proceed sequentially to the next valuation method.

A shipment of textile materials arrived with missing invoices, and the importer could not provide proof of payment. The importer requested to use computed value as a substitute. What should customs decide?,

Customs should deny the request and proceed sequentially through the proper valuation methods starting with identical or similar goods.

An importer declared $40,000 for computer processors, excluding transport costs since they were shipped using the importer’s own aircraft. Customs questioned this omission. What is the correct action?,

Customs must include the actual transport cost based on fuel, crew, and depreciation expenses in the customs value.

A customs broker handled a shipment of motor vehicle parts and noticed that the buyer made a separate payment to a foreign designer for blueprints used in production abroad. The importer did not include it in valuation. What should be done?,

The design payment must be added to the customs value as an assist used in the production of imported goods.

An importer declared the transaction value of imported footwear without including $2,000 in royalties paid to the brand owner, which was a requirement of sale. Customs found this through audit. What is the appropriate correction?,

The $2,000 royalty must be added to the customs value since it was paid as a condition of sale for the imported goods.

A local distributor imported luxury bags and included a domestic advertising fee in the declared customs value. Customs challenged the inclusion. What is the correct approach?,

The domestic advertising fee must be excluded since it is a post-importation expense not part of the dutiable value.

An importer declared identical machinery from two suppliers at different prices, both under the same contractual terms. Customs noted no valid explanation for the price gap. What should customs do?,

Customs should use the higher transaction value as a reference and reject the undervalued entry unless justified by quantifiable data.

A customs auditor discovered that the importer excluded the cost of loading at the port of export from the declared value. The importer reasoned that the loading cost was already covered in transport. What must customs decide?,

Customs must add the loading cost to the customs value as part of transport charges up to the Philippine port of entry.

A shipment of gaming consoles arrived with a declared value excluding packaging labor costs. The importer stated that packaging was done by a third party hired by the buyer. What is the correct treatment?,

The packaging labor cost should be added to the customs value because it is part of the total payment related to preparing the goods for shipment.

A customs officer found that the importer paid part of the purchase price in goods instead of money, providing raw materials to the seller in exchange for finished products. The importer did not declare this contribution. What is the correct action?,

The value of the raw materials must be added to the customs value as part of the total price actually paid or payable.

A local importer presented a low declared value and refused to provide supporting documents, claiming that the goods were under a private discount. Customs determined that no objective data existed to verify the price. What must customs do?,

Customs must reject the transaction value and determine the dutiable value using the next applicable valuation method.