# Customs decision frameworks

## Classification and origin

Collect specifications, composition, manufacturing steps, use, configuration and
retail presentation. Record each candidate heading and the applicable legal
Notes. Resolve heading before subheading, comparing the same level under GRI 6.
Special Section/Chapter provisions are not optional. The ADP definitions belong
to the relevant Chapter 84 Notes, not an invented Section XVI Note 5. A motor
vehicle body alone is not automatically a complete motor vehicle, and every
mixed material product is not automatically classified by its heaviest component.

A retail set analysis requires different headings, a shared need/activity and
presentation suitable for direct sale without repacking. A plain box does not
itself disqualify retail presentation; independently marketable components do
not themselves disqualify a set. Highest price alone does not determine essential
character. Record relevant official rulings and factual differences; do not use
an unverified ruling number as authority.

Determine non-preferential origin separately from FTA origin and AD/CVD scope.
No universal 30%, 40% or 60% value-added/cumulation shortcut applies across all
agreements. Assess the actual product rule, exceptions, processing and evidence.
A certificate is evidence, not conclusive proof of origin or merely a certificate
of exportation. A tariff shift or new commercial name alone may not resolve an
AD/CVD scope/circumvention question.

For FTA claims, map each non-originating input through the relevant rule, use
permitted valuation/cost definitions and keep period-specific BOM evidence.
Do not assert all EU and UK exporters share the same REX requirement, all textiles
share one tolerance, or a back-to-back RCEP certificate is issued by a non-party.
Check the actual agreement and exporter/importer requirements before certification.

## Valuation worksheet

Use the jurisdiction's permitted sequence: transaction value, identical goods,
similar goods, deductive, computed, fallback, with any permitted reversal of
methods documented. Do not choose arbitrary or minimum values. Record sale for
export, restrictions/conditions, related-party evidence, statutory adjustments,
exchange rate/date and supporting documents.

| Cost/question | US transaction-value review | EU transaction-value review |
|---|---|---|
| International freight/insurance | Generally exclude subject to applicable evidence/rules | Generally include to place of introduction |
| Further inland delivery | Review actual exclusions and documentation | Distinguish post-introduction cost and evidence |
| Assists | Apply statutory definition, location and allocation | Apply UCC definitions, location and allocation |
| Duty/tax within DDP price | Separate valid deductions from invoice total | Separate valid deductions; VAT base differs |
| Related-party price | Circumstances-of-sale/test-value analysis | Relevant relationship/test-value analysis |

Do not call removal of duty from a DDP invoice the WTO deductive-value method.
Do not treat every buyer-provided CAD file or inspection as a dutiable assist:
location, nature, actual benefit and legal definition matter. A US-origin design
can have different treatment from foreign engineering. Avoid invented 5%/10%
related-party valuation safe harbours. Tax arm's-length analysis is supporting
information, not automatic customs acceptance.

## Preference calculation and recovery

With each variable defined as the actual agreement requires, calculate allowed
RVC methods and compare each with its own threshold. Lower net cost is not an
automatic advantage. Synthetic example: VNM40/TV100 gives60%; VNM40/NC80 gives50%.
Do not apply fictional general automotive/steel/aluminium or AfCFTA thresholds.

Make an entry-level deadline table before recommending any retrospective claim.
For USMCA 1520(d), the one-year clock is from importation. A protest or PSC does
not automatically extend that clock. Verify qualification at the time of import
and the correct procedure with the broker. A claimed refund is not money received.
For valuation corrections, verify reconciliation eligibility/flag and deadlines;
not every downward tax adjustment permits a customs refund.

## Screening and controls

Identify transaction nexus, all parties, beneficial ownership/control, goods,
technology, destination, end use and routing. Retrieve current authoritative
lists and applicable regulations. Keep the list version/date and evidence.
Annex I to the EU Dual-Use Regulation is a controlled-item list, not a list of
controlled end users; an agency name is not a sanctions list.

Investigate names/aliases and reliable identifiers. A similarity score below85%,
a different address or a long customer history cannot automatically clear a hit.
No list hit does not clear unlisted ownership, destination/end-use controls or
unresolved diversion red flags. Keep ambiguous identity distinct from a confirmed
match. Do not silently convert ambiguity into an accusation.

The authorised compliance owner determines actual prohibition, blocking versus
rejection, reporting, licence/general licence/exception and permitted activity.
Entity List conditions differ by entry; a Denied Persons Order's scope must be
read, not reduced to an invented absolute worldwide prohibition. Do not freeze,
return or release property merely from this planning document. Record the basis
and approval for any operational hold/release and re-screen when required.

## Penalties, disclosures and records

Do not calculate a penalty from a generic percentage table. Revenue/non-revenue
violations, domestic versus dutiable value, culpability, limitations and annual
inflation adjustments matter. 19 USC1592 mitigation/prior-disclosure treatment is
not a universal minimum penalty. Formal-investigation commencement and the
party's knowledge are fact-sensitive under 19 CFR162.74; a CF-28, audit notice or
pre-penalty date alone is not a complete eligibility test. Counsel must direct
any disclosure, timing, scope, supplementation and tender. Do not discourage
truthful required reporting to conceal related issues.

Keep entry records, calculations, screening decisions, ownership checks, licences,
correspondence, proof of submission and actual settlement. Set retention by each
regime and legal hold; OFAC's general rule is ten years, not the older five-year
shortcut. Do not claim prior accepted entries prove CBP approved the position.

## Primary sources checked for this review

- [CBP CIF valuation](https://www.help.cbp.gov/s/article/Article1126)
- [Irish Revenue valuation manual](https://www.revenue.ie/en/tax-professionals/tdm/customs/valuation/valuation-20211104151648.pdf)
- [US Commerce USMCA guidance](https://www.trade.gov/usmca-auto-report)
- [CBP de minimis implementation notice](https://content.govdelivery.com/bulletins/gd/USDHSCBP-3f01456)
- [UK sanctions guidance](https://www.gov.uk/government/collections/uk-sanctions)
- [OFAC recordkeeping final rule](https://ofac.treasury.gov/media/934131/download?inline=)

These establish specific corrections, not a current ruling for an actual shipment.
Confirm the latest operative text and effective date at time of use.