such as restrictions on the buyer or conditions that affect the price), then there are five fallback methods: METHOD #1: Transaction Value of Identical Goods METHOD #2: Transaction Value of Similar Goods
If transaction value for identical goods is not available, then transaction value is calculated in the same manner on similar goods if the following are all true: • The goods closely resemble the goods being valued in terms of component materials and characteristics. • The goods are capable of performing the same functions and are commercially interchangeable with the goods being valued. • The goods are produced in the same country as and by the producer of the goods being valued.
Generally, transaction value is calculated in the same manner on identical goods if the following are all true: • The goods are the same in all respects, including physical characteristics, quality, and reputation. • They are produced in the same country as the goods being valued. • They are produced by the producer of the goods being valued. Note: For this method to be used, the goods must be sold for export to the same country of importation as the goods being valued. The goods must also be exported at or about the same time as the goods being valued.
What happens if a tariff is issued while my goods are in transit to the United States — will the tariff apply to my shipment? Generally, no. It is unlikely that you will have to pay the new tariff for goods already loaded onto a vessel (or other mode of transportation) at a port of loading and in transit prior to the announcement or effective date of a new tariff. Example: The Executive Order issued by the Trump administration on April 2, 2025, provides, in relevant part: “[e] xcept as otherwise provided in this order, all articles imported into the customs territory of the United States shall be, consistent with law, subject to an additional ad valorem rate of duty of 10 percent. Such rates of duty shall apply with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on April 5, 2025, except that goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. eastern daylight time on April 5, 2025, and entered for consumption or withdrawn from warehouse for consumption after 12:01 a.m. eastern daylight time on April 5, 2025, shall not be subject to such additional duty.” Note: There may be exceptions to the general rule, thus careful review of Executive Orders and/or engaging trade/customs counsel for assistance is recommended. Will CBP apply the tariff amount I calculated? No. While there are various online resources that can assist with calculating your tariff amount, in the United States, US Customs and Border Protection (CBP) makes the final determination of what the correct rate of duty is — not the importer. For specific duty information, you may request a CBP Binding Ruling or contact your local CBP port. A Binding Ruling (also known as an advance ruling) is a pre-entry, binding decision issued by CBP to importers seeking clarity on how a specific good or transaction will be treated under customs laws (i.e., an importer can seek a pre-entry classification decision). However, Binding Rulings are just that — binding. Therefore, whatever Ruling is provided by CBP will be binding upon the goods identified in the Ruling for all subsequent imports of such good, and not abiding by the Ruling may result in penalties.
26 Premier Flooring Retailer D2 | 2025
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