VALUATION CONSULTATION PROCESS FOR IMPORTED GOODS

In the field of logistics and import-export, determining the taxable value is a crucial step that affects not only costs but also transparency in international trade transactions. However, there are many cases where customs declarations are referred for valuation consultation process, creating challenges for businesses during customs clearance. So, what is valuation consultation? How does the process work? Let’s explore the details with Smart Link Logistics in this article.

What is Valuation Consultation?

When businesses import goods, the taxable value is a key concern for both enterprises and Customs authorities. While businesses aim to declare lower values to reduce costs, Customs authorities focus on ensuring adequate tax collection for the national budget. If there is disagreement on the declared value, the valuation consultation process is initiated.

Valuation consultation is a method by which importers provide documents and evidence to verify the accuracy of the declared value to Customs authorities.

Required Documents for Valuation Consultation

Upon receiving a valuation consultation request, businesses need to prepare a complete dossier as required by Customs, including:

• Contract, Invoice, Packing List.
• Certificate of Origin (CO).
• Customs declaration.
• Payment documents.
• Authorization letter (if represented by a third party).
• Personal identification documents such as ID card or citizen ID card.
• Other documents depending on the specific requirements of each shipment.

During the consultation, businesses must demonstrate that the declared value is the actual transaction price while confirming that there is no special relationship between the importer and the seller. Customs authorities, on the other hand, utilize databases and reference prices from similar shipments to determine what they consider an appropriate value.

Decision on Taxable Value After Valuation Consultation

At the end of the consultation, Customs authorities will draft a report and issue an official notice regarding the taxable value. If the declared value is accepted, the business proceeds with finalizing procedures. Conversely, if the determined value is higher, the business must pay the additional tax difference.

Exemptions from Future Valuation Consultations

According to regulations, businesses can request the application of a single Customs Valuation Notice for subsequent imports if the goods and transaction conditions remain unchanged. This helps businesses save time and optimize the customs clearance process.

Conclusion

Valuation consultation is an essential step in ensuring transparency and fairness in international trade. Businesses should prepare all necessary documents, understand the process, and cooperate with Customs authorities to facilitate the process. We hope this article provides you with valuable insights into valuation consultation process, helping you be more proactive in your import-export activities. If you need legal support or assistance with customs procedures in import-export, contact Smart Link Logistics for prompt and effective advice. With over 14 years of experience in transportation, we are proud to accompany you throughout your journey.