When importing cargo the importer (here will be called “buyer”) will declare the value of the shipment when doing customs clearance. But 1st, we need to understand how the value (to calculate duties/tax) is calculated.
By regulation the value to calculate duties and tax are always the price to the 1st export/import entry point, or CNF price for import cargo and FOB price for export cargo. And the price that is agreed upon and between buyer and seller are always pritoritized to be used as the valid price for declaration. However the agreed price can only be accept if the following condition are met:
+ Buyer are not restricted in using and/or deciding the fate of the imported cargo, the exception are:
– Restriction of the government based on the import policy (for example, rare species require CITES…)
– Restriction of place of consuming/using product
+ Buyer doesn’t have to pay the cost to seller by using, consuming and creating revenue from the commodity
+ The special relationship (if any) doesn’t affect the agreed price
+ Price is not affected by other transaction between buyer and seller, except buyer can quantify the effect of such transactions on the price
So if the business fails to follow any of the conditions, the price will now be determined by customs, by other methods of evaluation.
For assistance with import and export information, international freight, sea transport or import entrustment, please contact Truong Thanh Logistics at the address:
Truong Thanh Logistics – Dedication, Prestige
Hotline: 0915 36 38 39
Headquarter: 26th Floor, Tower A, Song Da Building, Pham Hung, Nam Tu Liem, Hanoi.
Email: sale@truongthanhjsc.com
info@truongthanhlogistics.com
Website: www.truongthanhlogistics.com
Hai Phong Branch
Address: R.A11, TTC Building, 630 Le Thanh Tong, Hai An, Hai Phong
Da Nang Branch
Address: 27 Nguyen Ba Lan, My An Ward, Ngu Hanh Son District, Da Nang.
HCMC Branch
Address: Room 41, 4th floor, Casanova building, 85 Nguyen Son street, Phu Thanh ward, Tan Phu district, Ho Chi Minh City
