Valuation of Goods – Customs & Duties

In this episode of the International Trade Resource Podcast, host Kim Kirkendall sits down with Nathan Reed, Director of Customs and Foreign Trade, to unravel the complexities of customs valuation for imports. With extensive experience - including consulting roles at Deloitte and DHL - Nathan breaks down why getting valuation right is critical for businesses importing goods across international borders.

What are the biggest mistakes companies make when valuing their goods? Nathan shares real-world examples of overlooked costs, misclassified transactions, and risky practices that could lead to hefty fines - or even criminal penalties. From assists (like molds and tooling costs) to HTS code misclassification, businesses often face compliance issues without realizing it. He also explains how companies can legally optimize their customs value, whether through negotiating prices, leveraging the "First Sale for Export" rule, or restructuring supply chains in response to tariff changes.

As regulations tighten and governments use AI to detect fraud and inconsistencies, importers must take full responsibility for their customs filings. Nathan and Kim discuss why relying on suppliers or freight forwarders isn’t enough, and what steps companies should take to ensure accuracy, avoid costly audits, and streamline their global trade operations.

KEY TAKEAWAYS:

• Transaction Value is Key: Understand what must be included in your declared customs value.
• Avoid Common Pitfalls: Misapplied discounts, undervaluation, and incorrect HTS codes can trigger serious penalties.
• Compliance is Your Responsibility: Importers - not suppliers - are liable for ensuring correct documentation.
• Plan for Tariffs Strategically: Learn how companies are adapting their supply chains to mitigate high duty costs.

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