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UPDATED: 5/7/05

Proof of Freight Charges Required

A recent Customs Ruling (HQ 548138 CC) has set forth the following regulations regarding the deduction of freight charges. Freight charges serve two purposes in regards to import transactions:
  1. Determining the dutiable value or the price actually paid or payable for a shipment.
  2. Statistical Purposes.
In cases where the freight charges are not included in the price of the merchandise (i.e. FOB shipment) an estimate of the actual charges is acceptable, since they are solely used for statistical purposes.

However, when the freight is included in the price of the merchandise (i.e. C&F shipment) these charges must be accurate. It is the importers' responsibility to possess documentary proof, of the freight charges that are being deducted in order to reach the dutiable value of a shipment.

It is the importers' responsibility to use "reasonable Care" when reporting information to U.S. Customs as set forth in the Customs Mod Act. As brokers, it is our responsibility to rely on the accuracy of the information reported by our clients for use in preparation of their Customs entries. In order to insure compliance with all regulations, we will require written advice as to the type and amount of charges associated with your shipments.

If you have any questions, regarding this change in policy, please contact our office. For additional information about the Mod Act and Reasonable Care please follow these links.

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