What is the input value?
The input value is the reported price of the imported product based on the information provided by the seller. It can also be referred to as a declared value. The seller states this price for shipping documents when selling the product to the international buyer. Customs officials rely on these reported values when they calculate the customs and obligations for imported goods. Transport companies may also refer to this value in determining transport or product insurance.
Each product can have two different declared values that are based on the seller's reports. The first is the value for transport. The input value of the transport is usually the same as the seller's costs for the item production. When determining the cost of transport, it often refers to this value, although not all transport companies prices for transport based on the input value. Insurance companies also look at the input value of transport when setting insurance limits for the product or when calculatingThe payments for the claims.
The input value for the customs authorities is often much higher than the input value for transport. The customs input value represents the sale price of the product or the price that the seller charges to the buyer for the purchase of goods. Customs officials focus on the customs input value when calculating customs obligations or taxes payable on imports. It is much less likely to pay attention to the entry value of transport, as well as transport and insurance companies hovering a small mind to the customs input value.
Since the input values are reported by the seller, it is common for these values to be inaccurate. For example, the seller may want to underestimate this number of transport companies in an effort to save transport. Sellers can also conclude an agreement with the buyers to not get customs value in an effort to reduce duties and taxes.
in an attempt to reduce fraud and distortion of rt, some countries have fromAvised laws requiring support documentation for these data. In the United States, all imported goods must be accompanied by a commercial invoice or in a manner that reveals the actual selling price of the goods. Insurance and freight companies may also require support documents related to the seller's costs for production and transport of items.
Some countries allow individuals to import or export items as gifts if the declared value is below a certain amount. When items are sent as gifts, total duties are generally lower or non -existent. In order to reduce the risk of fraud, customs laws may require gifts to be sent only from a person per person and not from one company to another. Agents can also check goods that follow that the actual value falls within the requirements stipulated by law.