Customs Assist
Meaning ~ Additions to the customs value representing costs of goods or services provided free or at reduced prices by the importer to the producer for manufacturing.
Dutiable Assist
Meaning
Goods or services provided directly or indirectly by a buyer to a foreign manufacturer free of charge or at a reduced cost modify the declared customs value of imported merchandise. Customs regulations treat a dutiable assist as an addition to the price actually paid or payable when determining transaction value. The statutory classification covers physical molds and engineering work performed outside the importing country, ending when production stops or tools are fully amortized.
Cost Inclusion
Buyer-supplied tooling and equipment directly increase the landed cost of imported finished products. Identifying a dutiable assist requires auditing procurement records to capture production assets provided without billing the contract manufacturer. Failure to add this value to customs entry summary filings violates import declarations law.
Duty Calculation
Apportioning the acquisition or production cost of tooling across imported quantities establishes proper per-unit customs values. Importers elect to declare the full assist value on the first commercial shipment or apportion it over anticipated production volumes. When engineering occurs in the buyer home country, statutory exemptions exclude those specific design costs from customs valuation.
Penalty Risk
Omitting buyer-furnished property from entry declarations invites customs audits and administrative fines. Customs authorities inspect commercial invoices against purchase contracts to identify unbilled production assets. Undisclosed value additions result in back-duty assessments and potential shipment seizures.