Transaction value and the fallbacks
Most goods are valued on transaction value, which is built from the price in a sale for export to the United States. When transaction value cannot be used, for example because there is no qualifying sale or the relationship between the parties influenced the price, the law provides alternative methods that are applied in a largely fixed order. Those alternatives depend on data that importers often do not have on hand, which is one reason CBP and importers end up disagreeing. Because the order is set by law, an importer cannot simply pick whichever method produces the lowest duty. Knowing which method your entries actually rest on is the starting point for any response.
Related-party sales under review
Sales between affiliates draw the most scrutiny. Transaction value can still be used between related parties if the importer shows the relationship did not influence the price, either by examining the circumstances of the sale or by comparing it with certain test values. Transfer pricing studies prepared for income tax can be part of that showing, but CBP has taken the position that they are not conclusive on their own. Where prices are adjusted after importation under an intercompany policy, CBP's reconciliation program may allow values to be finalized later, which requires planning before the entries are filed.
Responding to CBP and contesting a decision
Valuation questions often start with a request for information about specific entries, followed by a notice of proposed action if CBP intends to change the value. A careful, documented answer at that early stage can narrow the issue considerably. If CBP liquidates entries at a higher value, a protest filed within a limited period is the usual next step, and the denial of a protest can be challenged in the Court of International Trade. For future imports, a binding ruling can settle how a particular arrangement will be valued. Our review covers the transaction structure, the pricing documents, and the entries CBP has questioned, so that the response stays consistent across all of them.
