Adjusted Value: A Comprehensive Guide to Its Legal Meaning
Definition & Meaning
The term adjusted value refers to a specific method of determining the value of imported merchandise. According to U.S. customs regulations, this value is calculated based on various articles and interpretative notes from the Customs Valuation Agreement. It is essential to exclude certain costs, such as transportation, insurance, and related expenses incurred during international shipping, as well as the value of packing materials and containers used for shipment.
Legal Use & context
The concept of adjusted value is primarily used in customs law and international trade. It plays a crucial role in determining the duties and taxes applicable to imported goods. Understanding adjusted value is important for businesses involved in importing products, as it affects the overall cost of goods and compliance with U.S. Customs and Border Protection regulations. Users can manage related forms and procedures through tools like US Legal Forms, which provide templates drafted by legal professionals.
Real-world examples
Here are a couple of examples of abatement:
Example 1: A company imports electronic goods valued at $10,000. The transportation and insurance costs amount to $1,500. The adjusted value for customs purposes would be $8,500, as the transportation and insurance costs are excluded.
Example 2: A business imports furniture worth $5,000, with packing materials costing $500. The adjusted value would be $4,500, excluding the packing costs. (hypothetical example)
Relevant laws & statutes
Major regulations governing adjusted value include:
- 19 CFR 10.450 - Customs Duties
- Customs Valuation Agreement - Articles 1 through 8 and Article 15