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Customs Valuation System - Assignment 2

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Chloe jane Macabalos
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15 views3 pages

Customs Valuation System - Assignment 2

Uploaded by

Chloe jane Macabalos
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Chloe Jane B.

Macabalos

BSCA-301

TARL03B – Assignment #02

1. Under CAO # 16- 2010, kindly discuss the allowable adjustments for Method 1- Transaction
value. 10 pts

In determining the dutiable value under the provisions of method one, the following
adjustments shall be added to the price actually paid or payable for the imported goods being
valued to the extent that they are incurred by the buyer, provided there is objective and
quantifiable data to form the basis of the adjustments, and if such value has not been included
in the price actually paid or payable:

1.) Commissions and brokerage fees (except buying commissions) ;

2.) Cost of containers which are treated as being one for Customs purposes with the goods
in question,

3.) Cost of packing whether for labor or materials;

4.) Assists;

To the extent that such value has not been incorporated in the price actually paid or
payable. The goods and services are:

a.) Materials, components parts and similar items incorporated in the imported goods;

b.) Tools, dies, moulds, and similar items used in the production of imported goods;

c.) Materials consumed in the production of the imported goods; and

d.) Engineering, development, artwork, design work, and plans and sketches
undertaken elsewhere than in the Philippines and necessary for the production of
imported goods.

5.) Royalties and license fees related to the goods being valued that the buyer must pay,
either directly or indirectly, as a condition of sale of the goods being valued, to the
extent that such royalties and fees are not included in the price actually paid or payable;
6.) The value of any part of the proceeds of any subsequent resale, disposal or use of the
imported goods that accrues directly or indirectly to the seller;

7.) The cost of transport of the imported goods to the port of entry in the Philippines;
loading, unloading and handling charges associated with the transport of the imported
goods to the port of entry in the Philippines; and

8.) The cost of insurance.

There will be certain adjustments or additional costs to bring the imported items into the
Philippines, such as freight charges, insurance premiums, and other taxes. However,
additional charges are included in the transaction value, such as the commission, assistance,
royalties, and proceeds of the sale, as well as insurance and shipping or transaction.

First thing is the value for duty is the delivery cost. Selling commissions must also be
included, for instance, if a Chinese firm sells a product and pays an agent to advertise that
product on its behalf to increase sales, the selling commissions must be included in the price.
Goods and services are supplied free of charge or at a discounted cost, and there may be
times when the power is painful for the factory or when it receives, for example, wire
hangers that are sent out to a factory so that garments may be remounted for importation.
Things like these should be factored into the cost of duty. Materials, components, and similar
stuff —a coat that's hangers—but swish tags the tags, that are sewn into two clothing are
virtually anything free packaging. Lastly, it is fairly unusual for the importer of products to put
up whole production lines with tools and manufacturing equipment. For example, if you are
an electronic components equipment maker, you may establish a third-party firm to produce
your product, but you may also give them your intellectual property. The expenses of the
entire production process must be allocated and added to the value of the goods.

2. Enumerate the post importation charges/costs that does not included in the price actually
paid or payable under CAO # 16-2010.

(Post Importation Charges/Costs)

The dutiable value must not include the following charges or costs, if they are distinguished from the
price actually paid or payable for the goods;

a.) Charges for construction, erection, assembly, maintenance or technical assistance, undertaken
after importation on imported goods such as industrial plant, machinery or equipment.
b.) Cost of transport after importation; and
c.) Duties, taxes and other charges paid for the imported goods.

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