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Shipments below the transaction value in the Enhanced Value Reference Information System database must not be automatically rejected
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Bureau of Customs Assessment and Operations Coordinating Group deputy commissioner Edward James Dy Buco reminded customs personnel the e-VRIS is “only a risk management tool designed to determine if the declared value represents the transaction value”
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If the documents submitted substantiate that the declared value is the paid price for the item, the transaction value under Method 1 will be accepted
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If not, the examiner will proceed with the use of sequential methods of valuation
The Bureau of Customs (BOC) ruled that shipments with transaction values flagged under the Enhanced Value Reference Information System (e-VRIS) should not be automatically rejected.
In AOCG Memo No. 99-2023 dated February 15, Assessment and Operations Coordinating Group (AOCG) deputy commissioner Edward James Dy Buco reminded district collectors and assessment personnel that the e-VRIS is “only a risk management tool designed to determine if the declared value represents the transactions value.”
This being so, “all entries found to be below the e-VRIS shall not be automatically rejected as the transaction value for the shipment.”
For instance, if the declared value of the importer is rejected under e-VRIS, Dy Buco said Section 5.11 of Customs Memorandum Order (CMO) No. 16-2020—also known as the e-VRIS implementation order—provides that Customs examiners/appraisers should scrutinize accompanying documents to verify if the declared value represents the transaction value or the price actually paid or payable. The examiner may request the importer to further provide explanation, including submission of supporting documents to justify the declared value.
If the documents substantiate that the declared value is the actual paid or payable price for the item, then the transaction value under Method 1 of the Customs valuation system will be accepted. If the documents fail to satisfy the requirements under Method 1, the examiner can proceed with the use of sequential methods of valuation.
The e-VRIS, launched in 2020, serves as BOC’s new database of reference values and is integrated into the agency’s Electronic-to-Mobile (E2M) System. The e-VRIS replaced the National Value Verification System (NVVS), which received complaints and concerns from stakeholders since its implementation in 2019.
The e-VRIS provides for a look-up table where appraisers can select the values of identical or similar entries if the shipment is rejected under Method 1. Under e-VRIS, assessment personnel are required to identify the valuation method they used.
The system also allows the automatic flagging of potentially undervalued goods, or goods with declared values that fall below the minimum range. e-VRIS also provides importers and declarants a list of specification codes of products during the lodgment phase.
The BOC said the e-VRIS will help the bureau “establish a reliable and comprehensive database of information on the value and classification of imports for reference purposes in support of the implementation of the World Trade Organization’s (WTO) Valuation System.”
“These values are not to be considered substitute values but only reference values to assist assessment personnel in the valuation of goods. Further, assessment personnel are mandated to value imported goods pursuant to the provisions of Section 700-707 (Sequential Application of Valuation Method) of the Customs Modernization and Tariff Act (CMTA),” BOC added. – Roumina Pablo
