Export Value: A Comprehensive Guide to Its Legal Definition
Definition & Meaning
Export value refers to the monetary worth of goods at the U.S. port of export. This value is determined by the selling price of the goods, or their cost if they have not been sold. It includes all associated expenses such as inland or domestic freight, insurance, and other charges incurred until the goods reach the U.S. port of export, whether it be a seaport, airport, or land border. The total cost of goods encompasses all expenses related to their acquisition or production by the U.S. principal party in interest.
Legal Use & context
The term "export value" is commonly used in international trade law and customs regulations. It plays a crucial role in determining duties and tariffs when goods are exported from the United States. Understanding export value is essential for businesses engaged in international trade, as it impacts pricing, compliance with trade regulations, and the calculation of export taxes. Users can manage their export documentation and compliance through legal templates available on platforms like US Legal Forms.
Real-world examples
Here are a couple of examples of abatement:
Example 1: A company exports machinery valued at $100,000. The export value includes the selling price of the machinery, plus $5,000 for domestic freight and $2,000 for insurance. Therefore, the total export value is $107,000.
Example 2: A business exports textiles that have not yet been sold. The cost to produce these textiles is $50,000, and the company incurs $3,000 in transportation costs to the port. Thus, the export value is $53,000. (hypothetical example)
Relevant laws & statutes
Export value is primarily governed by the Foreign Trade Regulations, specifically outlined in Title 15 of the Code of Federal Regulations (CFR), Part 30. These regulations detail the requirements for reporting export information and the valuation of goods.