What Every Member of the 

Trade Community Should Know About: 

Buying and Selling 

Commissions 

AN INFORMED COMPLIANCE PUBLICATION 

OCTOBER 2006 
Buying and Selling Commissions 

October 2006

NOTICE:

This publication is intended to provide guidance and information to the trade community. 

It reflects the position on or interpretation of the applicable laws or regulations by U.S. 

Customs and Border Protection (CBP) as of the date of publication, which is shown on 

the front cover. It does not in any way replace or supersede those laws or regulations. 

Only the latest official version of the laws or regulations is authoritative. 

Publication History 

First Issued: June, 1996

Revised: January, 2000 

Revised: October, 2006 

PRINTING NOTE: 

This publication was designed for electronic distribution via the CBP website 

(http://www.cbp.gov) and is being distributed in a variety of formats. It was originally set 

up in Microsoft Word97®. Pagination and margins in downloaded versions may vary 

depending upon which word processor or printer you use. If you wish to maintain the 

original settings, you may wish to download the .pdf version, which can then be printed 

using the freely available Adobe Acrobat Reader®. 

2
Buying and Selling Commissions 

October 2006

PREFACE 

On December 8, 1993, Title VI of the North American Free Trade Agreement Implementation 

Act (Pub. L. 103-182, 107 Stat. 2057), also known as the Customs Modernization or “Mod” Act, 

became effective. These provisions amended many sections of the Tariff Act of 1930 and 

related laws. 

Two new concepts that emerge from the Mod Act are “informed compliance” and “shared 

responsibility,” which are premised on the idea that in order to maximize voluntary compliance 

with laws and regulations of U.S. Customs and Border Protection, the trade community needs to 

be clearly and completely informed of its legal obligations. Accordingly, the Mod Act imposes a 

greater obligation on CBP to provide the public with improved information concerning the trade 

community's rights and responsibilities under customs regulations and related laws. In addition, 

both the trade and U.S. Customs and Border Protection share responsibility for carrying out 

these requirements. For example, under Section 484 of the Tariff Act, as amended (19 U.S.C. 

1484), the importer of record is responsible for using reasonable care to enter, classify and 

determine the value of imported merchandise and to provide any other information necessary to 

enable U.S. Customs and Border Protection to properly assess duties, collect accurate 

statistics, and determine whether other applicable legal requirements, if any, have been met. 

CBP is then responsible for fixing the final classification and value of the merchandise. An 

importer of record’s failure to exercise reasonable care could delay release of the merchandise 

and, in some cases, could result in the imposition of penalties. 

The Office of Regulations and Rulings (ORR) has been given a major role in meeting the 

informed compliance responsibilities of U.S. Customs and Border Protection. In order to 

provide information to the public, CBP has issued a series of informed compliance publications 

on new or revised requirements, regulations or procedures, and a variety of classification and 

valuation issues. 

The Valuation & Special Programs Branch, Commercial and Trade Facilitation Division, ORR, 

has prepared this publication on Buying and Selling Commissions as part of a series of 

informed compliance publications regarding Customs classification and valuation. We sincerely 

hope that this material, together with seminars and increased access to rulings of U.S. Customs 

and Border Protection, will help the trade community to improve voluntary compliance with 

customs laws and to understand the relevant administrative process. 

The material in this publication is provided for general information purposes only. Because 

many complicated factors can be involved in customs issues, an importer may wish to obtain a 

ruling under Regulations of U.S. Customs and Border Protection, 19 C.F.R. Part 177, or to 

obtain advice from an expert who specializes in customs matters, for example, a licensed 

customs broker, attorney or consultant. 

Comments and suggestions are welcomed and should be addressed to the Assistant 

Commissioner at the Office of Regulations and Rulings, U.S. Customs and Border Protection, 

1300 Pennsylvania Avenue, NW, (Mint Annex), Washington, D.C. 20229. 

Sandra L. Bell 

Acting Assistant Commissioner 

Office of Regulations and Rulings 

3
Buying and Selling Commissions 

October 2006

(This page intentionally left blank)

4
Buying and Selling Commissions 

October 2006

INTRODUCTION............................................................................................................. 7

HOW IS IMPORTED MERCHANDISE APPRAISED?.................................................... 7

WHAT IS TRANSACTION VALUE?....................................................................................... 7 

HOW DOES THE ROLE OF AN INTERMEDIARY AFFECT TRANSACTION VALUE?......................... 7 

BUYING AND SELLING COMMISSIONS ...................................................................... 8

WHAT IS THE DIFFERENCE BETWEEN BUYING AND SELLING COMMISSIONS?.......................... 8 

HOW ARE BUYING AND SELLING COMMISSIONS TREATED UNDER THE TAA? ......................... 8 

WHEN ARE BUYING COMMISSIONS INCLUDED IN TRANSACTION VALUE?................................ 9 

WHAT ARE SOME EXAMPLES OF SERVICES WHICH ARE OFTEN PROVIDED BY BUYING AGENTS?

..................................................................................................................................... 9 

WHEN IS THE INTERMEDIARY A BONA FIDE BUYING AGENT? ................................................ 9 

WHAT ARE SOME EXAMPLES OF SERVICES WHICH ARE OFTEN PROVIDED BY SELLING AGENTS?

................................................................................................................................... 11 

WHAT ARE SOME INDICATIONS THAT THE INTERMEDIARY IS NOT A BONA FIDE BUYING AGENT 

BUT RATHER AN INDEPENDENT SELLER? ......................................................................... 11 

WHAT IS THE SIGNIFICANCE OF A BUYING AGENCY AGREEMENT OR THE ABSENCE OF SUCH AN 

AGREEMENT?............................................................................................................... 11 

WHAT IF THE SELLER AND THE INTERMEDIARY ARE RELATED? .......................................... 12 

WHO HAS THE BURDEN OF PROOF TO ESTABLISH THE EXISTENCE OF A BONA FIDE BUYING 

AGENCY?..................................................................................................................... 12 

HOW SHOULD BUYING COMMISSIONS BE SHOWN ON THE COMMERCIAL DOCUMENTS? ......... 12 

WHAT DOCUMENTARY EVIDENCE IS NEEDED TO PROVE THE EXISTENCE OF A BONA FIDE

BUYING AGENCY?......................................................................................................... 12 

WHAT HAPPENS IF THE IMPORTER DOES NOT PROVE THE EXISTENCE OF A BONA FIDE BUYING 

AGENCY?..................................................................................................................... 13 

WHEN IS THE INTERMEDIARY A SELLING AGENT? ............................................................. 13 

WHAT IF THE INTERMEDIARY PERFORMS SERVICES ON BEHALF OF BOTH THE BUYER AND THE 

SELLER?...................................................................................................................... 14 

DOES AN IMPORTER HAVE AN OBLIGATION TO REPORT COMMISSIONS TO CPB UPON ENTRY OF 

THE MERCHANDISE? ..................................................................................................... 14 

ADDITIONAL INFORMATION...................................................................................... 15

THE INTERNET ............................................................................................................. 15 

CUSTOMS REGULATIONS .............................................................................................. 15 

CUSTOMS BULLETIN ..................................................................................................... 15 

IMPORTING INTO THE UNITED STATES............................................................................ 16 

INFORMED COMPLIANCE PUBLICATIONS ......................................................................... 16 

VALUE PUBLICATIONS................................................................................................... 17 

“YOUR COMMENTS ARE IMPORTANT” ............................................................................. 18 

 

5
Buying and Selling Commissions 

October 2006

(This page intentionally left blank) 

6
Buying and Selling Commissions 

October 2006

INTRODUCTION 

When goods are imported into the Customs Territory of the United States (the 

fifty states, the District of Columbia and Puerto Rico), they are subject to certain 

formalities involving the U.S. Customs and Border Protection. In almost all cases, the 

goods are required to be “entered,” that is, declared to CBP, and are subject to 

detention and examination by Customs officers to insure compliance with all laws and 

regulations enforced or administered by CBP. As part of the entry process, goods must 

be “classified” (determined where in the U.S. tariff system they fall) and their value must 

be determined. Pursuant to the Customs Modernization Act, it is now the responsibility 

of the importer of record to use “reasonable care” to “enter,” “classify,” and “value” the 

goods and provide any other information necessary to enable CBP to properly assess 

duties, collect accurate statistics, and determine whether all other applicable legal 

requirements are met. 

 Under the authority of 19 U.S.C. §1500(a), it is Customs responsibility to fix the 

final appraisement of merchandise in accordance with 19 U.S.C. §1401a. This occurs 

after the importer of record, using reasonable care, has filed the declared value with 

U.S. Customs and Border Protection. CBP informed compliance publication “What 

Every Member of the Trade Community Should Know About: Customs Value” (Revised 

July 2006) discusses the methods of appraisement used in the United States. This 

publication concentrates on how commissions paid to intermediaries affect customs 

value. 

HOW IS IMPORTED MERCHANDISE APPRAISED? 

All merchandise imported into the United States is subject to appraisement. The 

Trade Agreements Act of 1979 (“TAA”), codified at 19 U.S.C. §1401a, et seq., sets forth 

the rules for appraisement of imported merchandise. The preferred method of 

appraisement under the TAA is transaction value. 

What is transaction value? 

The transaction value of imported merchandise is the price actually paid or 

payable for merchandise when sold for exportation to the United States, plus certain 

statutorily enumerated additions. For further information see the informed compliance 

publication “What Every Member of the Trade Community Should Know About: 

Customs Value” (Revised July, 2006). 

How does the role of an intermediary affect transaction value? 

Many import transactions involve a party (or parties) who is neither the seller nor 

the buyer but an intermediary who assists either the buyer or seller in the purchase or 

sale of the imported merchandise. Identifying the role of the intermediary is important in 

determining the transaction value of the imported merchandise. An intermediary may 

function as either a buying or selling agent or as an independent buyer/seller. When the 

7
Buying and Selling Commissions 

October 2006

intermediary is functioning as an agent, the actual sale is between the foreign seller and 

the buyer with the agent acting as a facilitator. In such case, the issue to be decided is 

whether the commissions the agent receives for its services are part of the transaction 

value of the imported merchandise. This informed compliance publication explains the 

differences between buying and selling agents, buying and selling commissions, and 

the ramifications of each for appraisement purposes. 

 When the intermediary is functioning as an independent buyer/seller, the issue to 

be decided is which sale is the sale for exportation for purposes of transaction value 

(the sale between the manufacturer/seller and the intermediary or the sale between the 

intermediary and the importer/buyer). The criteria used to determine whether the 

intermediary is functioning as an independent buyer/seller and if so, which is the sale for 

exportation, is the subject of the informed compliance publication, “What Every Member 

of the Trade Community Should Know About: Bona Fide Sales and Sales for 

Exportation”. 

BUYING AND SELLING COMMISSIONS 

What is the difference between buying and selling commissions? 

 In legal terms, in an agency relationship, one party is called the agent and the 

other party, the principal. An agent is a person who performs actions on behalf of the 

principal. The fees the agent receives for its services are called commissions. 

Typically, the commission is equal to an agreed upon percentage of the price of the 

goods. In a buying agency, the principal is the buyer and in a selling agency, the 

principal is the seller. Buying commissions are fees paid to a bona fide buying agent for 

the services it performs on behalf of the buyer in connection with the purchase of the 

imported goods. Selling commissions are fees paid to a selling agent for the services it 

performs on behalf of the seller in the sale of the imported goods. It is important to 

note that when the intermediary is acting as an agent, it is not the actual buyer or the 

actual seller of the imported goods but rather, a third party who is performing services 

on behalf of either the buyer or the seller. 

How are buying and selling commissions treated under the TAA? 

 Selling commissions incurred by the buyer with respect to the imported 

merchandise are one of the specified additions to the price actually paid or payable. An 

addition is to be made for such selling commissions unless they are already included in 

the price. (For example, if the seller pays its agent a commission and includes this 

amount in the price it charges the buyer for the imported goods, no addition is made for 

the selling commission since it is already included in the price). Selling commissions 

incurred by the buyer with respect to the imported merchandise are included in the 

transaction value either as part of the price actually paid or payable or as an addition 

thereto. 

8
Buying and Selling Commissions 

October 2006

 In contrast to selling commissions, buying commissions are not one of the 

specified additions to the price actually paid or payable. Therefore, no addition is made 

for bona fide buying commissions incurred by the buyer (that is, commissions paid to a 

bona fide buying agent who meets the criteria discussed in this publication). Except as 

noted below, bona fide buying commissions are not included in the transaction value of 

the imported merchandise. 

When are buying commissions included in transaction value? 

Buying commissions are included in the transaction value of the imported 

merchandise when they are part of the total payment made by the buyer to the seller. 

This is because the TAA does not authorize any deductions from the price actually paid 

or payable for buying commissions. (Example, the manufacturer bills the importer $100 

for the imported merchandise and the importer pays this amount to the manufacturer. 

This price includes a $5 buying commission which the manufacturer will pay to the 

buying agent upon receipt of the $100 payment from the importer. Even if CBP is 

satisfied that the intermediary is a bona fide buying agent, the total payment made by 

the buyer to the seller is $100 and no subtraction would be made for commissions the 

buying agent receives). 

What are some examples of services which are often provided by 

buying agents? 

 

 Examples of services which are characteristic of those rendered by a buying 

agent include compiling market information, gathering samples, translating, informing 

the seller of the desires of the buyer, locating suppliers, placing orders based on the 

buyer’s instructions, procuring the merchandise, assisting in factory negotiation, 

inspecting and packing merchandise, and arranging for shipment and payment. This is 

not an exhaustive list. 

When is the intermediary a bona fide buying agent? 

 The existence of a bona fide buying agent depends upon the relevant factors of 

the individual case. The courts have said that no single factor is determinative. Whether 

a person is a bona fide buying agent depends upon all the relevant facts of each case 

and the totality of the evidence. The fact that a person is called a buying agent does not 

mean that he/she is in fact a bona fide buying agent. Also, the fact that a person enters 

into a buying agency agreement with the buyer does not mean that such person is a 

bona fide buying agent. Having authority to act as a bona fide buying agent is not the 

same as actually performing as one. What needs to be considered is whether the 

services actually performed by the agent is what the parties agreed to and whether such 

actions are consistent with a bona fide buying agency. 

 In order to be considered a bona fide buying agent, the purported agent must be 

acting on behalf of and primarily for the benefit of the buyer, rather than for the seller or 

himself/herself. The main factor which determines whether a party is a bona fide buying 

9
Buying and Selling Commissions 

October 2006

agent is the right of the buyer to control the agent’s conduct with respect to those 

matters entrusted to the agent. The buyer should control the purchasing process and 

the buying agent should take directions from the buyer and act upon the buyer’s 

instructions. For example, a buying agent usually does not control who the 

manufacturer is or what is to be purchased. Normally, the buyer makes such decisions 

and the buying agent carries them out. Also, a buying agent usually does not control 

the manner of payment and other significant aspects of the purchase. While a buying 

agent may exercise some discretion, the ultimate purchasing decisions should be made 

by the buyer and not by the buyer’s agent. The more discretion the purported agent 

has, the less likely it is that such person is a bona fide buying agent. 

 Some factors considered by the courts which go to the main issue of “control” 

are: 

1. which party bears the risk of loss for lost or damaged merchandise? 

(generally, a buying agent does not bear the risk of loss); 

2. who absorbs the cost of shipping and handling? (buying agents generally do 

not absorb such costs); 

3. which party controls the manner of payment for the goods? (generally, a 

buying agent would not control how and when the seller is paid); 

4. could the buyer purchase from the manufacturers without using the services 

of the agent (if the answer is no, the agent may be a selling agent); 

5. was the intermediary operating an independent business primarily for its own 

benefit? (if the answer is yes, it is possible that the intermediary is not an 

agent but an independent seller); 

6. is the intermediary financially detached from the manufacturer or seller? (if 

not, it is possible that the intermediary may not be acting on behalf of the 

buyer, but on behalf of the seller); 

7. what do the commercial documents show? (e.g., how are the parties referred 

to in the commercial documents; is there a buying agency agreement; is 

there a purchase agreement and if so, who are the parties thereto). 

 In many cases, a written buying agency agreement is entered into between the 

buyer and the buying agent which outlines the responsibilities of each party and sets 

forth the amount of commissions that are to be paid. In such case, the terms of the 

agreement should be reviewed to see whether they are consistent with a buying agency 

and whether the purported agent is actually performing the functions as provided in the 

agreement. 

 The totality of the evidence must be examined in order to determine whether 

there is a bona fide buying agency. The bottom line: does the evidence prove that the 

10
Buying and Selling Commissions 

October 2006

buyer is the party in control and that the purported agent is working for the buyer and 

not the seller or himself/herself? 

What are some examples of services which are often provided by 

selling agents? 

 It is not important what the agent refers to himself/herself as. What is important 

is the role s/he plays in the transaction. Examples of the services which are often 

rendered by a selling agent include seeking customers for the seller’s goods, 

maintaining samples and showing them to prospective buyers, assisting in preparing 

export documents and arranging for insurance, transport and storage. This is not an 

exhaustive list. 

What are some indications that the intermediary is not a bona fide 

buying agent but rather an independent seller? 

 In some cases an intermediary may not be functioning as an agent at all, but 

rather as an independent buyer/seller. In such case, the amount that is referred to as 

the buying commission may actually be the intermediary’s mark-up or profit which would 

constitute part of the total price paid by the buyer and part of transaction value. Some 

indications would be that the intermediary operates an independent business primarily 

for its own benefit, that it has unlimited discretion regarding the purchase of the goods 

from the seller, that the purported buyer and seller have no direct contact, and that the 

intermediary obtains title to the goods. For further discussion, see Informed 

Compliance Publication “What Every Member of the Trade Community Should Know 

About: Bona Fide Sales and Sales for Exportation”. 

What is the significance of a buying agency agreement or the absence 

of such an agreement? 

 A written buying agency agreement which sets forth the obligations of the buyer 

and agent is evidence of the buying agency. However, it is not determinative. While 

the agreement is important, it is more important to consider whether the parties are 

actually doing what they agreed to do. For example, the fact that the agreement 

indicates that the agent must obtain the buyer’s written approval before entering into an 

agreement with the seller is meaningless if the purported agent never obtains the 

buyer’s written approval. Also, the fact that the agreement indicates that the buyer will 

be responsible for selecting the manufacturer is meaningless if the purported agent 

selects the manufacturer. Where the actions of the parties indicate that the buyer 

maintains little or no control over the agent, there is no bona fide buying agency 

relationship, even if the agreement provides otherwise. 

 The absence of a buying agency agreement does not necessarily preclude the 

existence of a bona fide buying agency relationship. However, it will be very difficult to 

establish one without it. 

11
Buying and Selling Commissions 

October 2006

What if the seller and the intermediary are related? 

 Since a buying agent is supposed to be acting on behalf of the buyer and in the 

best interests of the buyer, it is more difficult to show that the intermediary is a bona fide

buying agent when it is related to the seller. The courts have said that while a 

relationship between the buying agent and the seller does not preclude the existence of 

a buying agency, the circumstances surrounding such transactions are subject to closer 

scrutiny. One factor that CBP has looked at in these cases is whether the purported 

agent always obtains the imported merchandise from the related seller or whether it 

also regularly uses unrelated sellers. If the purported buying agent obtains the imported 

merchandise only from its related seller, it will be difficult for the importer to show that 

the agent is acting in the best interests of and under the direction and control of the 

buyer and a finding of a bona fide buying agency is unlikely. Another relevant factor 

when the seller and the intermediary are related is whether any of the commissions paid 

by the buyer inure to the benefit of the seller. If they do, this would not be consistent 

with a bona fide buying agency relationship. 

Who has the burden of proof to establish the existence of a bona fide

buying agency? 

 The importer has the burden of proving the existence of a bona fide buying 

agency relationship. Absent sufficient proof, commissions paid by the importer will be 

included in the transaction value of the imported merchandise. 

How should buying commissions be shown on the commercial 

documents? 

 There is no one invoicing method that must be used with regard to buying 

commissions. However, the method used (along with the method of payment) can 

either facilitate a determination of non-dutiable buying commissions or make such a 

finding more difficult. The method of invoicing and the method of payment is part of the 

total evidence that must be considered before a determination can be made regarding 

the status of so-called buying commissions. For example, the easiest way to show that 

the middleman is not a seller and that the payments to the middleman represent buying 

commissions is for the seller to invoice the buyer for the purchase price of the imported 

merchandise and for the middleman to invoice the buyer separately for its commissions. 

The buyer would then pay the seller for the goods and separately pay the middleman for 

its services. This method clearly shows the price paid for the imported merchandise 

and the amount of the commission. 

What documentary evidence is needed to prove the existence of a 

bona fide buying agency? 

 Before an importer declares the commissions as non-dutiable buying 

commissions, the importer should be satisfied that the totality of the evidence 

12
Buying and Selling Commissions 

October 2006

demonstrates that the purported agent is a bona fide buying agent and not a selling 

agent nor an independent seller. The importer should be prepared to submit evidence 

which proves its claim. At a minimum, an invoice or other documentation from the 

seller, showing who the seller is and establishing the price actually paid or payable for 

the imported goods, must be submitted at the time of entry or upon demand by CBP if 

not requested at the time of entry. Any buying commissions should be shown 

separately from the price actually paid or payable for the imported merchandise. Any 

written buying agency agreement, invoices pertaining to the payment of buying 

commissions and other evidence of the buying agency should be submitted at the time 

of entry or upon request by CBP. The final determination of whether the commissions 

paid are bona fide buying commissions is made by CBP based on the documentation 

submitted. 

What happens if the importer does not prove the existence of a bona 

fide buying agency? 

 Where an intermediary is involved in the import transaction and the importer 

cannot establish its role as a bona fide buying agent, depending on the facts presented, 

the intermediary will be considered either a selling agent or an independent seller. An 

importer who declares commissions as non-dutiable buying commissions without the 

evidence to back up its claim would not be exercising reasonable care and may be 

subject to penalty or other enforcement compliance action. 

When is the intermediary a selling agent? 

 The same agency principles applicable to buying agents also apply to selling 

agents. However, in a selling agency, the principal is the seller. A selling agent 

represents the interests of the seller, rather than the buyer, in the sale of the imported 

merchandise. A selling agent may seek customers, collect orders, or otherwise assist 

the seller in the sale of the imported merchandise. In the case of a selling agency, the 

seller controls the actions of the selling agent with respect to those matters entrusted to 

the agent. For example, an importer may arrange for the purchase and importation of 

the merchandise with the seller’s agent, rather than the seller. A selling agent could 

negotiate with the importer, on behalf of the seller, concerning the sale of the imported 

goods. However, it is the seller, and not its agent, who has the ultimate authority with 

respect to the sale of the goods. If the intermediary has complete discretion regarding 

the sale of the goods, and/or obtains title and ownership from the seller, the 

intermediary would be considered an independent buyer/seller and not a selling agent. 

 When the intermediary and the seller are related, close scrutiny is required in 

ascertaining whether the intermediary is a bona fide buying agent or a selling agent. 

When the intermediary always obtains imported merchandise from its related sellers, it 

is likely that the intermediary is actually a selling agent. A similar result would be 

reached if any or all of the commissions paid by the buyer inure to the benefit of the 

seller. 

13
Buying and Selling Commissions 

October 2006

 Unless already included in the price, all selling commissions incurred by the 

buyer with respect to the imported merchandise are to be added to the price actually 

paid or payable for those goods. 

What if the intermediary performs services on behalf of both the 

buyer and the seller? 

 Since a buying agent is supposed to be acting on behalf of the buyer and in the 

best interests of the buyer, it is more difficult to show that the intermediary is a bona fide

buying agent when it is also performing services on behalf of the seller. While this fact 

does not automatically preclude the intermediary from being considered a bona fide

buying agent, it will require closer scrutiny of the transaction. A bona fide buying 

agency relationship is not precluded if the services performed by the intermediary are 

primarily for the benefit of the buyer, the services provided the seller are limited in 

scope, and the intermediary informs the buyer about the nature of the services to be 

performed for the seller and the amount of compensation to be received. 

Does an importer have an obligation to report commissions to CPB 

upon entry of the merchandise? 

 Yes. The importer is required to sign a declaration on the CBP Form 7501 

submitted at the time of entry, which indicates among other things, that the submitted 

invoices include commissions. In this regard, 19 U.S.C. §1481, as amended, specifies 

that all invoices of merchandise to be imported into the United States and any electronic 

equivalent thereof shall prescribe, among other things, all charges upon the 

merchandise, including commissions. In addition, 19 U.S.C. §1481 requires the 

furnishing of any other facts deemed necessary to a proper appraisement of the 

merchandise. 19 U.S.C. §1484, as amended, provides that an importer shall, using 

reasonable care, “. . . complete the entry by filing with the Customs Service the declared 

value, . . . and such other documentation or, pursuant to an electronic data interchange 

system, such other information as is necessary to enable the Customs Service . . . to 

properly assess duties on the merchandise. . . .” This would include sufficient 

information to enable CBP to determine whether any commissions were paid by the 

buyer in connection with the imported merchandise and if so, whether they are buying 

or selling commissions. Therefore, invoices relating to the payment of the imported 

merchandise and the payment of commissions (both buying and selling commissions) 

and other relevant information discussed above should be provided to CBP. An 

importer who fails to declare commissions would not be exercising reasonable care and 

may be subject to penalty or other enforcement compliance action. 

14
Buying and Selling Commissions 

October 2006

ADDITIONAL INFORMATION 

The Internet 

The home page of U.S. Customs and Border Protection on the Internet’s World Wide 

Web, provides the trade community with current, relevant information regarding CBP 

operations and items of special interest. The site posts information -- which includes 

proposed regulations, news releases, publications and notices, etc. -- that can be 

searched, read on-line, printed or downloaded to your personal computer. The web site 

was established as a trade-friendly mechanism to assist the importing and exporting 

community. The web site also links to the home pages of many other agencies whose 

importing or exporting regulations that U.S. Customs and Border Protection helps to 

enforce. The web site also contains a wealth of information of interest to a broader 

public than the trade community. For instance, on June 20, 2001, CBP launched the 

“Know Before You Go” publication and traveler awareness campaign designed to help 

educate international travelers. 

 

The web address of U.S. Customs and Border Protection is http://www.cbp.gov

Customs Regulations 

The current edition of Customs Regulations of the United States is a loose-leaf, 

subscription publication available from the Superintendent of Documents, U.S. 

Government Printing Office, Washington, DC 20402; telephone (202) 512-1800. A 

bound, 2003 edition of Title 19, Code of Federal Regulations, which incorporates all 

changes to the Regulations as of April 1, 2003, is also available for sale from the same 

address. All proposed and final regulations are published in the Federal Register, which 

is published daily by the Office of the Federal Register, National Archives and Records 

Administration, and distributed by the Superintendent of Documents. Information about 

on-line access to the Federal Register may be obtained by calling (202) 512-1530 

between 7 a.m. and 5 p.m. Eastern time. These notices are also published in the 

weekly Customs Bulletin described below. 

Customs Bulletin 

The Customs Bulletin and Decisions (“Customs Bulletin”) is a weekly publication that 

contains decisions, rulings, regulatory proposals, notices and other information of 

interest to the trade community. It also contains decisions issued by the U.S. Court of 

International Trade, as well as customs-related decisions of the U.S. Court of Appeals 

for the Federal Circuit. Each year, the Government Printing Office publishes bound 

volumes of the Customs Bulletin. Subscriptions may be purchased from the 

Superintendent of Documents at the address and phone number listed above. 

15
Buying and Selling Commissions 

October 2006

Importing Into the United States 

This publication provides an overview of the importing process and contains general 

information about import requirements. The February 2002 edition of Importing Into the 

United States contains much new and revised material brought about pursuant to the 

Customs Modernization Act (“Mod Act”). The Mod Act has fundamentally altered the 

relationship between importers and U.S. Customs and Border Protection by shifting to 

the importer the legal responsibility for declaring the value, classification, and rate of 

duty applicable to entered merchandise. 

The February 2002 edition contains a section entitled "Informed Compliance." A key 

component of informed compliance is the shared responsibility between U.S. Customs 

and Border Protection and the import community, wherein CBP communicates its 

requirements to the importer, and the importer, in turn, uses reasonable care to assure 

that CBP is provided accurate and timely data pertaining to his or her importation. 

Single copies may be obtained from local offices of U.S. Customs and Border 

Protection, or from the Office of Public Affairs, U.S. Customs and Border Protection, 

1300 Pennsylvania Avenue NW, Washington, DC 20229. An on-line version is 

available at the CBP web site. Importing Into the United States is also available for 

sale, in single copies or bulk orders, from the Superintendent of Documents by calling 

(202) 512-1800, or by mail from the Superintendent of Documents, Government Printing 

Office, P.O. Box 371954, Pittsburgh, PA 15250-7054. 

Informed Compliance Publications 

U.S. Customs and Border Protection has prepared a number of Informed Compliance 

publications in the “What Every Member of the Trade Community Should Know 

About:...” series. Check the Internet web site http://www.cbp.gov for current 

publications. 

16
Buying and Selling Commissions 

October 2006

Value Publications 

Customs Valuation under the Trade Agreements Act of 1979 is a 96-page book 

containing a detailed narrative description of the customs valuation system, the customs 

valuation title of the Trade Agreements Act (§402 of the Tariff Act of 1930, as amended 

by the Trade Agreements Act of 1979 (19 U.S.C. §1401a)), the Statement of 

Administrative Action which was sent to the U.S. Congress in conjunction with the TAA, 

regulations (19 C.F.R. §§152.000-152.108) implementing the valuation system (a few 

sections of the regulations have been amended subsequent to the publication of the 

book) and questions and answers concerning the valuation system. A copy may be 

obtained from U.S. Customs and Border Protection, Office of Regulations and Rulings, 

Value Branch, 1300 Pennsylvania Avenue, NW, (Mint Annex), Washington, D.C. 20229. 

Customs Valuation Encyclopedia (with updates) is comprised of relevant statutory 

provisions, CBP Regulations implementing the statute, portions of the Customs 

Valuation Code, judicial precedent, and administrative rulings involving application of 

valuation law. A copy may be purchased for a nominal charge from the Superintendent 

of Documents, Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-

7054. This publication is also available on the Internet web site of U.S. Customs and 

Border Protection. 

The information provided in this publication is for general information 

purposes only. Recognizing that many complicated factors may be 

involved in customs issues, an importer may wish to obtain a ruling under 

CBP Regulations, 19 C.F.R. Part 177, or obtain advice from an expert 

(such as a licensed Customs Broker, attorney or consultant) who 

specializes in customs matters. Reliance solely on the general 

information in this pamphlet may not be considered reasonable care.

Additional information may also be obtained from U.S. Customs and Border Protection 

ports of entry. Please consult your telephone directory for an office near you. The 

listing will be found under U.S. Government, Department of Homeland Security. 

17
Buying and Selling Commissions 

October 2006

“Your Comments are Important” 

The Small Business and Regulatory Enforcement Ombudsman and 10 regional 

Fairness Boards were established to receive comments from small businesses about 

Federal agency enforcement activities and rate each agency’s responsiveness to small 

business. If you wish to comment on the enforcement actions of U.S. Customs and 

Border Protection, call 1-888-REG-FAIR (1-888-734-3247). 

REPORT SMUGGLING 1-800-BE-ALERT OR 1-800-NO-DROGA 

Visit our Internet web site: http://www.cbp.gov

18