Customs Valuation Audit Mechanics for Cross Border Agency Import Transactions
Customs valuation in agency imports depends on proving buying commission exemptions under Decree 213 while adjusting for assists and royalties.
Buying Commission Exemption
Meaning
Administrative provisions exclude certain procurement fees from the taxable base of imported goods when these costs are paid to an agent representing the buyer. Applying the buying commission exemption allows importers to reduce their customs duty liability by separating intermediary fees from the actual transaction value of the merchandise. This deduction is only valid if the agent operates independently of the seller and performs genuine agency services.
Exclusion Requirement
Financial adjustments must be clearly documented to show that the intermediary has no financial interest in the manufacturing entity. If the agent receives a markup or holds a stake in the supply chain, the exemption is disallowed. Regional custom offices scrutinise contracts to confirm the true nature of the transaction.
This scrutiny is particularly intense when the agent and the seller share a parent company or have overlapping board members, as these relationships suggest a conflict of interest that invalidates the agency status.
Evidence Standard
Substantiating the claim requires the submission of written agency agreements, purchase orders, and proof of payment issued to the agent. These documents must show that the agent does not own the goods at any point. A failure to present consistent bank transfer records results in the inclusion of the commission in the dutiable value.
Verification Action
Customs officers regularly audit transaction values after the goods have entered the domestic market. When inspectors discover that a claimed agency fee actually disguised a payment to the seller, they initiate anti-smuggling investigations. The administrative recovery of unpaid duties can extend back three years from the date of the original import filing.