- United States Fashion Industry Association

Transcription

- United States Fashion Industry Association
www.pwc.com
Customs & International
Trade at PwC
DENIB Roundtable
March 26, 2015
Customs & International Trade
Practice
Experienced trade professionals where and
when needed
Customs & International Trade
Global Presence
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Customs & International Trade at PwC
•  PwC’s Customs and International Trade practice (CIT) can help your company manage
the risks and opportunities associated with your import/export operations.
•  Network of more than 400 Customs & Trade professionals in over 100 markets around
the world.
•  Global strategic and local tactical insights that others cannot match.
•  A wealth of experience and knowledge of customs and trade processes around the
world to provide efficient and cost-effective customs and trade operations.
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Customs & International Trade at PwC
•  We are the leader by reputation and usage for global indirect tax consulting services,
as recognized by the Global Tax Monitor.
•  Our network is market-focused and regionally oriented to seamlessly provide the right
mix of capabilities, expertise, and cultural background to meet the complex needs of
multinationals.
•  We have deep knowledge of what local regulators are looking for and what leading
practices exist to fulfill those expectations.
•  Our practice is well integrated with other PwC lines of service and can therefore call
upon necessary specialists in these other practice areas to ensure that we meet our
clients’ needs.
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How We Can Help
First Sale for Export
Discussing First Sale
Offsetting rising costs with traderelated cost saving strategies
•  First Sale for Export
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First Sale for Export Overview
What is a First Sale for
Export?
•  When there are multi-tiered
sales transactions giving rise
to the importation of
merchandise to the U.S., the
transaction value in an
earlier sale transaction may
be used as the basis for
appraisement, provided that
certain requirements are
satisfied
Where can First Sale for
Export be used?
•  FSFE valuation method is
currently accepted by customs
authorities in the U.S. and the
EU. Most other jurisdictions
do not accept FSFE valuation
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First Sale for Export Overview
Typical Multi-Tiered Transaction Structure
Importer
Middleman Invoices
Importer
Orders placed
Import Sale Transaction –
Duties typically based off this
value
Middleman Vendor
Orders placed
Manufacturer
Invoices Middleman
First Sale Transaction –
Duties based off this value
under FSFE valuation
Manufacturer(s)
Finished Goods Shipped
Directly to Importer
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First Sale for Export Overview
Example
FSFE reduces an importer’s duty liability by applying the duty rate to
the first sale value, which is presumably lower than the import sale:
•  Product - Bath towel, cotton
•  HTS code – 6302.91.0050
•  Duty Rate – 9.20%
Import Sale Valuation
First Sale Valuation
Second Sale
$1000
First Sale
$700
Duty Rate
9.20%
Duty Rate
9.20%
Customs
Duties
$92
Customs
Duties
$64.40
Customs Duty Savings: $ 27.60
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FSFE Regulatory Requirements
All four elements are required for use of First Sale appraisement:
1.  Bona Fide Sale for Export
• 
The first sale must be a bona fide sale and the use of transaction value must
not otherwise be precluded pursuant to the valuation law.
2.  Arm’s Length Transaction
• 
The first sale must be conducted at an “arm’s length,” free from any nonmarket influences.
3.  Clearly Destined
• 
The merchandise must be clearly destined for export to the US at the time
of the first sale.
4.  Accounting for All Required Elements of Value
• 
All additions to the price paid or payable must be properly included in the
first sale value declared upon entry.
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First Sale for Export Appraisement
Key Benefits
First sale for
export may
reduce duty
expenses and
help manage the
landed cost of
imported
merchandise
First sale for
export may be
combined with
other duty
savings programs
to maximize
benefits (e.g.,
FTAs with
regional value
thresholds)
FSFE valuation
can be used
regardless of
where the
underlying
imported product
originates
importers
Suppliers whose
operating
structure
supports FSFE
are considered
more valuable
business partners
by US/EU
importers
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First Sale for Export
Practical Considerations
• 
FSFE can be used in unrelated supply chain models as well as in vertically
integrated supply chain
! 
• 
Supply chains involving related parties will require periodic analysis of
FSFE prices to ensure the manufacturer’s price meets the arm’s length
standard
Ongoing commitment to maintaining compliance with FSFE criteria
! 
FSFE valuation risks and liabilities are those of the importer, not the
foreign supplier
! 
U.S. Customs can require substantiation of the FSFE price at any time,
with an expectation that importers can provide that data within 30 days
• 
FSFE affords customer visibility to manufacturing level costing
• 
Restructuring for FSFE requires coordination between all parties in the supply
chain to ensure that all considerations are addressed
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Your PwC Contacts!
Contacts – United States
Anthony Tennariello
Dom Gambardella
Partner, New York
Tel: +1 (646) 471-4087
anthony.tennariello@us.pwc.com
Partner, New York
Tel: +1 (646) 471-3791
domenick.gambardella@us.pwc.com
Maytee Pereira
Director, New York
Tel: +1 (646) 471-0810
maytee.pereira@us.pwc.com
Contacts – Turkey
Cenk Ulu
Murat Kutlu
Partner, Turkey
Tel: +90 212 355 58 52
cenk.ulu@tr.pwc.com
Senior Manager, Turkey
Tel: +90 212 355 58 54
murat.kutlu@tr.pwc.com
Durul Kayili
Senior Manager, Turkey
Tel: +90 212 355 32 23
durul.kayili@tr.pwc.com
www.pwc.com
Thank You!