Internet Prices for Customs Valuation?

Can online prices really determine customs value? A bold CBP ruling just said yes—raising big questions for importers and customs pros. Download the ruling, too.

As a Customs Consultant, I've seen many valuation puzzles—but few as eyebrow-raising as a recent ruling. In this case, U.S. Customs and Border Protection (CBP) rejected declared values for imported e-cigarettes and instead turned to internet-listed prices to determine the customs value. We evaluate what this means.

Key Questions Covered in This Blog

• Can internet prices replace transaction value under WTO customs valuation rules?

• Is using online listings akin to using minimum prices—something the WTO clearly prohibits?

• What makes the ruling controversial among Customs professionals?

• How does this practice compare with EU customs compliance?

• What are the risks for importers, exporters, and trade compliance officers if this sets a precedent?

Abbreviations Used In This Blog

• CBP: U.S. Customs and Border Protectio

• ACV: Agreement on Customs Valuation (WTO)

• HTSUS: Harmonized Tariff Schedule of the United States

• CEE: Center of Excellence and Expertise

• DIS: Document Image System

“Using online retail prices to appraise customs value is a step back toward valuation practices the WTO tried to leave behind. The Brussels Definition of Value was replaced for a reason.”

Arne Mielken, Managing Director, Customs Manager

Can internet prices replace transaction value?

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