Valuation Methods
How many methods of Valuation does the WTO Valuation Agreement consist of?
6
What does the term WTO mean in context of Customs Valuation?
World Trade Organization
What are the conditions that need to be satisfied before Customs can add Royalties and License fees as part of the Transaction Value?
When it is related to the imported goods and if it is paid as a condition of the sale.
Which section of the Customs Act deals with Customs Valuation?
Section 19
What is the third method of Valuation?
Transaction Value for Similar Goods Method
What does the acronym BDV means?
BRUSSELS DEFINITION OF VALUES
All commissions and brokerages are added to the PAPP except for?
Buying Commission
According to Article 9 (1) of the WTO Agreement, where the conversion of currency is necessary for the determination of the customs value, the rate of exchange to be used shall be duly published by the competent authorities of the country of importation. Which institution is the competent authority in Jamaica?
The Bank of Jamaica
If the buyer and seller are related, what is one way the Transaction Value can be accepted?
The use of the Transaction Value Method is only acceptable if the importer can prove that the relationship did not influence the price actually paid or payable.
What is the Tranasction Value?
The price actually paid or payable for the goods when sold for export to the country of importation subject to adjustments.
You are perusing documents for a shipment as the Invoice Inspector in EPU and there were some material that were sourced outside of Jamaica that were supplied by the importer to the supplier to be incorporated into the finished product. The cost of the material was $500. The supplier charged $1000 for the finished goods.What is the FOB value for the shipment?
$1,500
What are the three options for appeal available to importers, in order?
request a review by Customs Internal Review Body, Taxpayer Appeals Department, Appeal to the Revenue Court
The methods must be applied in sequential order but there is one exception, Which two methods of valuation can be reversed?
Method 5 before 4
This involves the transfer of ownership of merchandise from a foreign country by a supplier to an importer that directly causes the merchandise to be imported to Jamaica.
What is a Sale for export?
A shipment of gaming machines arrives at KWL and the invoice states the following:
10 gaming machines $40,000
Installation at buyers premises $5,000
Invoice total $45,000. What is the FOB value for the machines?
$40,000
Which Article of the WTO Agreement gives the importer the right to appeal without penalty?
Article 11
List all methods of Valuation in sequential order
Transaction Value Method, Transaction Value for Identical Goods, Transaction Value for Similar Goods, Deductive Value Method, Computed Value Method and Fallback Method.
What are assists?
Goods and Services supplied directly or indirectly by the buyer to the seller to be used in the production and sale for export of the imported goods.
ABC Enterprises purchases a machine from GHP Holdings under a financing agreement. THe invoice states the following:
Cost of machinery $150,000, Interest charges $30,000, Inland freight $3,000. Total $183,000.
What is the FOB Value?
$153,000
Which Article of the WTO Agreement or section of the Customs Act speaks to the right of Customs to doubt the truth and accuracy of any information presented for Customs Valuation purposes?
Article 17 and Section 19 subsection 2