Commercial Information Circulars
24-hour hotline : 23 922 922
e-mail address : enquiry@tid.gov.hk
Ref : EIC 111/3 , EIC 111/3/13
31 December 2009
Dear Sirs,
Commercial Information Circular No. 668/2009
US : CBP's Ruling Related to the Dutiability of Certain Buying Commission Payments
The US Customs and Border Protection (CBP) published in the Customs Bulletin and Decisions (Vol. 43, No. 50) of 10 December 2009 a notice about revocation of a ruling (HQ H006588) dated 17 December 2007 relating to the dutiability of certain buying commission payments. Since its decision to revoke is based on the specific facts of the particular matter, CBP is not revoking or modifying any other rulings. Its action is effective for merchandise entered or withdrawn from warehouse for consumption on or after 8 February 2010.
DETAILS
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The ruling was made by the CBP in response to a request made by David's Bridal, Inc. (DBI). CBP originally held that DBI had not met its burden of establishing that the payments made to Fillberg Limited (Fillberg), a purported buying agent in Hong Kong, constituted bona fide buying commissions inasmuch as there was insufficient documentary evidence to establish the existence of a bona fide buying agency relationship. Consequently, the payments made to Fillberg were included in transaction value and were dutiable.
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The new Headquarter ruling to revoke ruling HQ H006588 can be viewed at:
http://www.cbp.gov/linkhandler/cgov/trade/legal/bulletins_decisions/bulletins_2009/
vol43_12102009_no50/43genno50.ctt/43genno50.pdf (pages 165-174 are relevant).
ENQUIRIES
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For enquiries concerning the content of this circular, please contact the undersigned at 2398 5682.
Yours faithfully,
(Miss Bonny CHAO)
for Director-General of Trade and Industry
| Note : | While every effort is made to ensure the accuracy of the above information, the Department cannot guarantee this to be so and will not be held liable for any reliance placed on the same. |