Import Valuation Strategies

In this episode of the International Trade Resource Podcast, host Kim Kirkendall welcomes back Alejandro Alcalde, a trade compliance expert with decades of experience in global customs, logistics, and tax compliance. Together, they dive into the complexities of Import Valuation Strategies—a critical topic for businesses navigating international trade in an era of fluctuating tariffs.

Discover how First Sale Valuation (FSV) can be a game-changer for importers looking to legally minimize duties. Alejandro breaks down the requirements, common pitfalls, and real-world applications of this strategy, explaining how businesses can benefit by properly structuring their supply chains. What happens if a product moves through multiple countries before reaching its final destination? How do ownership structures and post-import modifications impact valuation? These are just some of the questions tackled in this insightful discussion.

And finally to wrap up this episode they discuss where do companies go wrong when adjusting their supply chains to optimize valuation.  Alejandro and Kim emphasize the importance of meticulous documentation, from commercial contracts to proof of payment, ensuring businesses are prepared should customs authorities come knocking years later. They also explore how working with customs brokers and trade consultants can help companies avoid costly mistakes and optimize their import processes.

KEY TAKEAWAYS:

• First Sale Valuation Can Lower Costs: Under the right conditions, using the initial purchase price instead of the final resale price can reduce import duties.
• Documentation is Everything: Keeping thorough records of contracts, invoices, and payments is critical to proving compliance.
• Your Customs Broker is a Key Partner: They must understand your valuation strategy and be aligned with your import processes.

Episode Sponsors: 

If you liked this episode - Buy Me a Coffee  - it’s a great way to help us cover the out of pocket costs.  LINK:  https://www.buymeacoffee.com/kimkirkendall

Acclime China:

https://china.acclime.com/

Corporate Services and full Accounting/CPA/Tax for China.

Website: www.intltraderesources.com

Email: intltradepodcast@gmail.com

Disclaimer: The content of this podcast is for informational purposes only and does not constitute legal or commercial advice. We provide no guarantee for the accuracy of the information provided. Reproduction or transmission of this podcast is strictly prohibited.