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Title:

CHAPTER XIV TRANSACTION VALUE

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Title: CHAPTER I INTRODUCTION Classical Theories of International Trade Author: m Last modified by: User Created Date: 11/14/2003 10:05:25 PM Document presentation format – PowerPoint PPT presentation

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Title: CHAPTER XIV TRANSACTION VALUE


1
CHAPTER XIV TRANSACTION VALUE
  • Transaction Value of Imported Merchandise
  • Transaction Value of Identical Merchandise
  • Transaction Value of Similar Merchandise
  • Deductive Value
  • Computed Value

2
Transaction Value of Imported Merchandise
  • The price actually paid or payable for the
    merchandise for exportation to the United States,
  • plus amounts for the following items if not
    included in the price
  • The packing costs incurred by the buyer.
  • Any selling commission incurred by the buyer
  • The value of any assist
  • Any royalty or license fee that the buyer is
    required to pay as a condition of the sale.

3
Transaction Value of Imported Merchandise
  • Assists
  • Items that the buyer provides free of charge or
    at a reduced cost for use in the production or
    sale of the goods for export to the United States
  • Materials, components, parts
  • Tools, dies, molds
  • Merchandise consumed in producing imported goods
  • Engineering, development, artwork, design work,
    and plans and sketches that are undertaken
    outside the United States

4
Transaction Value of Imported Merchandise
  • Exclusion
  • The freight, insurance and other expenses from
    the country of exportation to the place of
    importation in the U.S.
  • The costs for technical assistance after
    importation
  • Transportation cost after importation
  • Import duties and other Federal taxes

5
Transaction Value of Imported Merchandise
  • Limitations The transaction value cannot be used
    as the appraised value
  • Restrictions on the disposition of the
    merchandise
  • Condition for which a value cannot be determined
  • Proceeds of any subsequent resale accruing to the
    seller, for which an appropriate adjustment to
    transaction value cannot be made
  • Related-party transactions where the transaction
    value is not acceptable.

6
Transaction Value of Imported Merchandise
  • For related-party transactions to be acceptable
  • Transaction value of identical merchandise or of
    similar merchandise sold to unrelated buyers in
    the U.S.
  • Deductive value or Computed value for identical
    or similar merchandise.
  • Value by the Advance Pricing Agreement(APA) with
    the Internal Revenue Service (IRS)

7
Alternative Valuations
  • Transaction Value of Identical Merchandise
  • Transaction Value of Similar Merchandise
  • Deductive Value
  • Computed Value

8
Transaction Value of Identical Merchandise
  • Identical in all respects to the merchandise
    being appraised
  • Produced in the same country as the merchandise
    being appraised
  • Produced by the same person as the merchandise
    being appraised
  • All three criteria or the first two criteria

9
Transaction Value of Similar Merchandise
  • Produced in the same country and by the same
    person
  • Like merchandise being appraised in
    characteristics and component materials
  • Commercially interchangeable with the merchandise
    being appraised
  • All three criteria or all other criteria but
    produced by the different person

10
Deductive Value
  • The resale price in the United States after
    importation of the merchandise, with deductions
    for certain items
  • Items to be deducted from the unit resale price
  • Commission or profit and general expenses
  • Transportation and insurance cost from the port
    of exportation to the place of resale.
  • Custom duties and federal taxes
  • Value of further processing
  • If an assist is involved, Deductive value cannot
    be used. Use the Computed Value instead.

11
Computed Value
  • The sum of various costs up to exportation
  • Materials, fabrication, and other processing
  • Profit and general expenses of the producer
  • Any assist, if not included in items 1) and 2)
  • Packing costs
  • Importer can designate either Deductive Value or
    Computed Value.
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