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Customs transaction value
How to lower to custom transaction value to lower the duty fees

Msg#: 4655189 posted 12:52 am on Mar 19, 2014 (gmt 0)

I'm doing some research to know if it's possible to lower the transaction value when exporting from Canada to USA. I'm trying to lower the duty fees for not NAFTA eligible products. The duty fees is paid based on a percentage of the transaction value.

Here's the situation :

Company A (Canada) sells a product 5$ to company B (Canada)

Then, Company B sells the products 10$ to company C (USA). In this case, the transaction value would be 10$ and Company B (importer of record) would have to pay duty fees on 10$.

If Company B buys a warehouse in USA, could they ship to this warehouse with a transaction value of 5$, since this is company B's cost for this product. After the transaction to USA, Company B (USA) would then sell to Company C (USA) at 10$. If this is possible, Company B would pay duty fees on 5$ instead of 10$.

I'm not sure how to verify if this could be possible and/or legal. Need some help!



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