WHAT IS CUSTOMS VALUATION CONSULTATION? ESSENTIAL NOTES FOR BUSINESSES

“What is customs valuation consultation?” is a common question raised by importers when conducting customs procedures for import-export goods. Determining the value of goods for tax purposes is a critical step in the import process. This not only affects the amount of tax payable by businesses but also directly impacts the revenue targets of customs authorities. Let Smart Link help you understand customs valuation consultation through this article!

What is Customs Valuation Consultation?

Customs valuation consultation is a process in which customs authorities and businesses exchange information and documents to verify the accuracy of the declared value on customs declarations.

Businesses are required to provide documents and evidence to prove that the declared value reflects the actual transaction price. Meanwhile, customs authorities use price databases, risk management lists, and reference information from similar shipments to build their arguments.

If no consensus is reached during the consultation, businesses may need to deposit an amount based on the value proposed by customs authorities to clear and release the goods before continuing further processes.

Customs Valuation Consultation Procedure

Once a decision for valuation consultation is made, the customs office will forward the case to the valuation consultation department of the Customs Bureau. The department will issue an invitation or contact the business to schedule a meeting.

The consultation period is generally no more than 30 days from the date of declaration registration. Representatives from the business or authorized individuals should prepare the following documents for the consultation:

• National ID or Citizen ID Card.
• Authorization letter (if not a legal representative).
• Customs documentation: contracts, commercial invoices, packing lists, payment documents, quotations, etc.

During the consultation, businesses must substantiate the authenticity of the declared value through relevant documents and explain in detail the factors influencing the price. Additionally, businesses must confirm that no special relationship exists between the buyer and the seller to eliminate doubts about undervaluing goods.

Post-Consultation Process

At the conclusion of the consultation, customs authorities will draft a report documenting all discussions, including questions, answers, and final conclusions. Subsequently, they will issue a notification either confirming the declared value or applying a different value if the original value is deemed unacceptable.

If a higher value is applied, businesses must pay the additional tax difference. If the declared value is accepted, businesses can proceed with securing refunds for the deposited amount.

Conclusion

Customs valuation consultation is a critical process requiring businesses to be well-prepared with documents and knowledge to defend their declared value. Understanding this process can help businesses minimize risks, save time, and protect their interests in import-export activities.

While no one prefers to undergo valuation consultations, it remains a necessary step to ensure transparency and fairness in international trade.