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On April 24, 2013, the Census Bureau posted on its Global reach website an article entitled, How to report Discounts in the Automated Export System. The article points out that the Foreign Trade Regulations (FTR) §30.6(a)(17) define value as the net selling price plus the inland or domestic freight cost, insurance and any other charges incurred to get the shipment to the U.S. port of export.
The value should reflect the net selling price the foreign buyer has paid the USPPI (the US Principal Party in Interest) for the goods. However, if a foreign buyer receives a discount on the export sale, the discount may or may not need to be deducted from the selling price. According to the FTR, if the foreign buyer received a discount based on a condition he or she performed or acted, then it should not be deducted from the net selling price. The article includes two scenarios to illustrate the rule. The first scenario involves a discounted sale offered to every buyer to reduce old inventory. In this case the discounted price (along with other costs required by the FTR) would be reported in AES. In the second scenario, a buyer is offered a 10% discount if the buyer pays cash. In this case the original price without the discount would be reported as the discounted in conditioned on some act by the buyer. |
US – Census provides guidance on reporting discounts in AES
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