More than the invoice price
For most imports, value is based on the price actually paid or payable for the goods when sold for export to the United States, with certain additions the law specifies. Some of those additions surprise importers, such as molds or tooling supplied free or at a discount to the overseas factory, or royalties paid as a condition of the sale. Payments made separately to the seller, even under a different contract, can count as part of the price. International freight and insurance are generally treated differently in the United States than in many other countries, which tend to include them in the value. Getting these pieces right affects not only ordinary duty but any additional tariff calculated on the same value.
Related parties and price changes after entry
When the buyer and seller are related, CBP may look at whether the relationship influenced the price, and transfer pricing set for income tax purposes does not automatically satisfy customs rules. Year-end adjustments between affiliates can raise or lower the value of goods already entered, and whether and how to report them depends on how the pricing policy was written and when its terms were fixed. Some importers declare value based on an earlier sale in a multi-tier transaction, which can reduce duties but requires documentation of that earlier sale that many importers cannot easily obtain. Rebates and price reductions granted after importation also need careful handling.
When the declared value may be wrong
Gather the purchase orders, invoices, payment records showing what was actually paid and to whom, any agreements covering tooling, royalties, or commissions, and your intercompany pricing policy if one exists. If entries already filed appear undervalued, there are ways to correct them, and a prior disclosure made before you learn of a formal CBP investigation can substantially reduce penalties. The timing of that decision matters, and so does making sure the disclosure is complete. We trace the money from your company to the seller and others, compare it with what was declared, and decide whether past entries need correction or only future entries need adjustment.
