Origin of goods, customs tariffs, and the value of imported goods are the three elements of taxation that provide the basis for duty assessments. It is important to have a standard set of rules for establishing value, yet we have found that many of our clients do not have these calculations in place in their systems. C4T has developed a Valuation Module in CAS with the fine-grained functionality to automatically determine the correct customs value based on pre-configured parameters. Companies with a large volume of import declarations from different suppliers, related or non-related, can gain significant efficiencies with the addition of this module.
If you want to learn more on customs valuation concepts or methods, you can access the WCO Academy e-learning courses on customs valuation concepts or advanced valuation methods.
The CAS Customs Valuation Module handles customs valuation per transaction. In more complex cases, you can use our decision tables. They have all the customs logic built in and were designed so that business users can quickly and easily configure and maintain them without the need for IT assistance. Here’s how the valuation process works: Your system can transmit the valuation types and valuation adjustment types for a customs shipment inbound or outbound per transaction. If transactionally transmitted, then the data will be used by CAS.
As an alternative, if the data is not available in the ERP system or not transactionally available, the customs manager can define the valuation adjustments per valuation type in specific tables. When the conditions in the table are met, CAS will automatically calculate the customs value of imported goods each time the customs shipments meet the set parameters. This can be done per item, per group of items, or even per customs shipment. Plus, the module allows you to configure the tables for future shipments.
Here are several examples of decision tables for valuations:
As you can see, CAS can be used to automatically calculate the customs value of imported goods with valuation adjustments as well as statistical values and VAT taxable basis for the Declarations. The capability to manage valuation parameters integrates with the Declaration Module in CAS.
In addition to providing automatic calculations of value, the Customs Valuation Module provides transparency, giving you the ability to instantly demonstrate how you arrived at your calculation in the event of an audit.
If you don’t have a standard set of rules in place for valuation of your goods, give us a call to discuss how the CAS Customs Valuation Module can work for you.