What are the First Appraisement and Second Appraisement of imported goods?

First Appraisement and Second Appraisement are terms used in the context of customs valuation, particularly in some countries’ customs procedures. Here’s what they typically refer to:

  1. First Appraisement:
    • The First Appraisement is the initial valuation of imported goods conducted by customs authorities for the purpose of assessing customs duties and taxes.
    • It involves determining the customs value of the goods based on the information provided by the importer, such as the invoice price, freight, insurance, and any other relevant costs.
    • Customs authorities may use various methods prescribed by international customs valuation agreements, such as the transaction value method, to establish the customs value.
    • The First Appraisement serves as the preliminary assessment of duties and taxes payable by the importer at the time of importation.
  2. Second Appraisement:
    • The Second Appraisement occurs when customs authorities decide to re-evaluate the customs value of imported goods after the First Appraisement.
    • This re-evaluation could be triggered by various factors, such as doubts regarding the accuracy of the declared value, suspicion of undervaluation, or discrepancies in documentation.
    • During the Second Appraisement, customs authorities may conduct a more thorough examination of the imported goods and the accompanying documentation to verify the declared value.
    • If discrepancies or inconsistencies are found, customs authorities may adjust the customs value accordingly, leading to potential changes in the assessed duties and taxes payable by the importer.

The purpose of both First and Second Appraisement is to ensure the accuracy and integrity of customs valuation, thereby preventing revenue leakage and ensuring compliance with customs regulations. It allows customs authorities to verify the declared value of imported goods and to take appropriate action if there are concerns about undervaluation or other irregularities.

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