If you have any question about valuation challenge, you will find the answer right here.
Keep reading to learn more.
- What Is Valuation Challenge?
- Which Documents Do You Need During Valuation Challenge?
- How Does Valuation Challenge Work?
- What Is The Difference Between Valuation Challenge And Normal Customs Inspection Procedures?
- Under What Circumstances Do Valuation Check Take Place?
- What Is Supporting Evidence During Valuation Challenge?
What Is Valuation Challenge?
This is basically a checkup carried out by the customs authorities when they have a reason or reasons to be skeptical about the value of your customs.
Which Documents Do You Need During Valuation Challenge?
Import export documents
The following export import documents are required while carrying out a valuation challenge:
- Bank statement- it is a printed document issued to the account holder that states the amount deposited and withdrawn from the bank
- Sea freight insurance policy- this is marine insurance that covers goods against risk of loss, damage, an accident like fire collision or explosion.
It’s not limited to sea only, it also covers transportation after sea say you use road or railway transport to get goods to the final destination.
- Commercial invoice– it’s a very important document that is legally provided by the seller to the buyer.
It acts as a contract and proof of sale between the two.
- Sale invoice- this document acts as proof of debt.
It contains the amount the buyer owes the seller for the purchased products, the payment details like the exact date, invoice number, etc.
- Transport invoice- this document shows the total transport cost you owe.
- Purchase order- is a promise document the importer sends to the exporter stating that payment will be made on a designated date.
It contains details of the product the quality and the type.
It benefits both parties in that it guarantees the seller of payment and also the buyer is able to keep track of the order.
The promise reminds them to adhere to the agreed date.
- Insurance invoice- this document highlights the insurance bill
- Bill of Lading– it is a document issued by the carrier to the shipper that contains the type of a product, quantity, and the final location of the goods.
Ideally, it acts as a shipment receipt that normally goes along with your goods
- Export declaration- it’s a document issued in the airport that contains details of the goods that are yet to be exported.
It’s used by the customs authorities exporting goods out of the EU.
- Clearance order-
this document is issued when your goods meet custom clearance entry formalities hence goods can then be released from customs to the importer
- Direct representation- here the stated party appoints a representative like a carrier for example.
The party transfers the right of provision via a message to the representative.
The representative also carries all activities relating to declarations associated
How Does Valuation Challenge Work?
Here’s how the procedure works:
The shipment is selected among the rest for a valuation check after a physical inspection has been done.
The cargo is selected only when the customs is suspicious of the customs value of your shipment.
You will be expected to produce the documents mentioned above although you are not limited to them, to prove the value of your goods is correct.
What Is The Difference Between Valuation Challenge And Normal Customs Inspection Procedures?
There is a thin line between valuation challenge and normal customs inspection procedure ;
Mainly because they are all inspections carried by the customs authorities but there is more than meets the eyes.
A valuation challenge is a procedure done after the inspection procedure has taken place.
It’s done once the customs doubt the customs value of your cargo.
Your cargo is separated from the rest for the procedure to begin.
Inspection procedure on the other hand is a normal checkup done before goods are shipped to their destination.
This procedure verifies the quantity and quality of goods and also ensures they are free from defects and they meet the safety requirements of the final destination.
Under What Circumstances Do Valuation Check Take Place?
A valuation check only takes place when the customs authorities are unsure of the customs value of your goods.
What Is Supporting Evidence During Valuation Challenge?
Supporting evidence is what you use to show the current valuation of your goods is correct.
In this case, producing the relevant document will fully support your case.