Form CBP Form 247 CBP Form 247 Cost Submission

DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection

OMB APPROVAL NO. 1651-0028
EXPIRATION DATE 11-30-2024

COST SUBMISSION
19 U.S.C. 1508 through 1509

COST SUBMISSION
BY

For the Period

through

CERTIFICATION
This declaration of actual costs, inclusive of attached Exhibits A through D and required supporting schedules, is
complete, accurate, and responsive to the instructions listed hereon to the best of my knowledge. Any omission resulting
in the under payment of duties could result in the assessment of penalties under the provisions of Section 592, Tariff Act
of 1930.

Name and Official Company Title

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Paperwork Reduction Act Statement: An agency may not conduct or sponsor an information collection and a person is
not required to respond to this information unless it displays a current valid OMB control number and an expiration
date. The control number for this collection is 1651-0028. The estimated average time to complete this application is 50
hours. If you have any comments regarding the burden estimate you can write to U.S. Customs and Border Protection,
Office of Regulations and Rulings, 90 K Street, NE., Washington DC 20229.

HOW TO PREPARE THE COST SUBMISSION
EXHIBIT A
1. Materials and Components
Components which are of U.S. manufacturer and which are in condition ready to assemble without further
fabrication are not dutiable. You must maintain auditable records, which demonstrate that these components were
not just purchased in the U.S., but were also made in the U.S.
Components which are further manufactured prior to assembly are dutiable.
Components of foreign or undetermined origin are dutiable. The value of the components shall include
transportation and related transportation expenses to the border.
2. Foreign Operating Expenses
All costs incurred in the foreign assembly plant are reported in this category. Do not fail to report costs considered
"non-dutiable.'' Attach an explanation and schedule for non-dutiable items.
3. Assist Costs
Assists are items of value supplied to the producer of the imported merchandise, free or at reduced cost, directly
or indirectly by the buyer of merchandise. These items are limited to the following:
a. Components (See item 1 above)
b. Tools, dies, molds and similar items. This category includes machines and machine tools furnished to the
assembler.
c. Merchandise consumed in production (glue, thread, nails, lubricating oils) in addition to item 1 above.
d. Engineering development, artwork, design work and plans and sketches undertaken elsewhere than in the
U.S. Design work performed in the U.S. is now expressly non-dutiable.
e. General purpose equipment, such as sewing machines, ovens, drill presses, etc. used abroad in production.
Depreciation expense would be dutiable.
The actual profit and general expenses of the assembler will generally be used, unless that figure is unusual for
goods of the same class or kind as good being valued which are made in the country of exportation for export to
the U.S.

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5. Total Value
This amount is the total of all costs and value declared for the reporting period.
6. Non-Dutiable Costs
This item sums up all deductibles: Item 9802.00.80 is for all qualifying components, i.e., those which were
produced in the U.S and were exported in condition ready to assemble without further fabrication. Item
9801.00.10 includes items, including packing, which are of U.S. origin and are returned without having been
advanced in value by any process. Item 9802.00.60 is for U.S. metal articles sent abroad for processing and
returned for further processing in the U.S. As the application of all those provisions involves highly technical law,
the advice of the import specialist will be particularly valuable.

EXHIBIT B
Summary of Entries
In Exhibit A, you summarized your costs for the reporting period. Exhibit B provides a format to summarize the declared
value and duty for the same period.

EXHIBIT C
Calculation of Duty
This page is a worksheet to be used to calculate the duty based on actual costs declared on Exhibit Afor comparison with
total duty deposits shown on Exhibit B.

EXHIBIT D
Company Information
This information should be provided with every cost submission. Only changes need to be submitted subsequently.

NOTE: Importers completing this form should contact CBP officials at the appropriate port of
entry for further clarification and/or assistance.

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EXHIBIT A
Name of Company:
Cost Submission to CBP for period

through

dated

.

DESCRIPTION OF COSTS
1. Material Components Cost
a. Non-Dutiable Cost
Material
Scrap
Freight
b. Dutiable Cost
Material
Scrap
Freight
Total Material Components Cost

$

Comments on Material costs:
1.
2.
3.

If standard component costs are used in company records, add variance to arrive at actual costs.
Supporting schedules may be attached for explanatory purposes.
Some acceptable methods of determining material costs include:
a. Shipments of materials to foreign subsidiary, with beginning and ending inventory adjustments.
b. Reliable raw material cost control accounts.
c. Bills of materials.

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EXHIBIT A
2. Foreign Operating Expenses
a. Direct Labor
b. Overhead:
Production
General & Administrative
Total Operating Expenses
c. Less: Non-Dutiable
d. Net Operating Expenses

(

)

Comments on Foreign Operating Expenses:
1.
2.
3.
4.

Costs should be taken directly from the expense account in the Factory Ledger.
Internal operating statements summarizing expense accounts should be attached to this submission.
A supporting schedule of non-dutiable expenses should be attached.
A supporting schedule of foreign currency conversion to U.S. dollars and methodology should be attached.

3. U.S. Assist Costs* (other than materials included in item 1)
a. Tools, dies, molds and similar items
b. Merchandise consumed in production
c. Engineering, development, artwork, design work and plans
and sketches undertaken outside the United States
d. Depreciation of general purpose equipment
Total Assist Costs

$

The term "assists" is defined as items supplied free or at a reduced cost by the buyer of imported goods to the
producer.

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EXHIBIT A
4.

Profit (Actual)*

4a.

Packing
U.S. Packing
Foreign Packing
Total

5.

Total Value

$
The above information constitutes your submission of actual costs and value.

SHOW MARK-UP AND HOW DETERMINED:
Less:
6.

Non-Dutiable Costs
Item 9802.00.80
Item 9801.00.10 U.S. Packing
Item 9802.00.40
9802.00.60

7.

(

)

(

)

(

)

(

)

Dutiable Value

* Comments on Profit (if there is no profit, place a zero in the blank and explain):

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EXHIBIT B
SUMMARY OF ENTRIES under item 9802.00.80 for period
Column (1)

Column (2)

Entry No.
and Date

Total
Entered
Value

Column (3)
Value Entered Non-Dutiable
9802.00.80

9801.00.10

through
Column (4)
Dutiable Value Entered Under Each Rate
%

%

%

Column (5)

Column (6)

Column (7)

Column (8)

Total
Dutiable
Value

Total
Duty
Deposited

Liquidation
Increase or
Decrease

Total
Duty
Paid

TOTALS
NOTE:
1. Exclude returned machinery, excess components, and all items generally not subjected to foreign labor or overhead. You may find it convenient to list by invoice. Use rounded
figures from Column (3) of the entry forms.
2. This Exhibit may also be used for entries involving HTSUS 9802.00.40 AND/OR 9802.00.60 by changing the item number in Column (3) or by adding additional columns as
necessary.
3. Do not include the merchandise processing fee in column (6).
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EXHIBIT C
CALCULATION OF DUTY BASED ON ACTUAL COSTS
TOTALS
1. Duty Rates of Importations
(Exhibit B, Column 4)
2. Dutiable Values Entered Under Each Rate
(Exhibit B, Column 4)

%

$

3. Percentage of each Dutiable Value to Total
(Divide each value on line 2 by the total on
line 2)

%

$

%

%

%

$

%

$

%

$

%

4. Actual Dutiable Value
(Exhibit A, Line 7)

100%

$

5. Proration of Actual Dutiable Value:
(Percentage on Line 3 X value on line 4)

$

$

$

$

6. Duty on Actual Value
(Line 1 X line 5)

$

$

$

$

$

7. Duty Paid on Estimate Value
(Exhibit B, Column 8)

$

8. Total Duty Difference
(Line 6 minus line 7)

$

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EXHIBIT D
COMPANY INFORMATION
In order to familiarize the auditors with your company organization, please furnish the following information:
(1)

Name and location of Parent Company.

(2)

Names and locations of principal U.S. Divisions.

(3)

Name and location of foreign subsidiaries.

(4)

Identify the relationship of the subsidiaries to Divisions and Parent (i.e., materials furnished, assistance, shipments
of finished goods to U.S. companies and how product is used). Identify the relationship of the Foreign Assembly
Plant Operation to the Parent Company (i.e., materials furnished, assistance, shipments of finished goods to U.S.
companies and how product is used).

(5)

Furnish names of principal managers of the foreign subsidiaries.

(6)

Identify the products manufactured or assembled by technical name. Show duty rate and the HTSUS Number item
under which each is imported into the United States.

(7)

Furnish a description of the manufacturing or assembly process for the imported articles.

(8)

Does your company use a standard cost system for pricing inventories or raw materials, work-in process, and
finished goods? Are these standard costs the basis on which estimated duties have been paid on CBP entries?

(9)

On what date did your foreign subsidiary from which you import assembled products begin operations? If the period
of this reconciliation between actual and estimated costs and duty does not begin with the inception of operations,
state the reason, e.g., similar reconciliation may have been submitted to CBP previously. Also, state why the
reconciliation does not coincide with the fiscal and/or calendar year and provide a schedule to demonstrate
differences between period used and fiscal or calendar year.

(10) Identify any royalty payments or patent costs relating to imported merchandise.

(11) Furnish information on automated record storage devices (e.g., magnetic discs, and tapes, computer programs
necessary to retrieve information in a usable form, the computer language used, and the types of computerized
accounting records used by the company.

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EXHIBIT D
COMPANY INFORMATION
CONTINUATION SHEET
Please use this additional page, if needed. (Continued from Previous page). Please number your comments according to
the question you are answering.

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Privacy Act Statement
Pursuant to 5 U.S.C. § 552a (e) (3), this Privacy Act Statement serves to inform you of why DHS is requesting the information on this
form.
AUTHORITY:
U.S. Customs and Border Protection (CBP) is authorized to collect the information requested on this form pursuant to 19 U.S.C.
Customs Duties, The Tariff Act if 1930 (sections 1508 and 1509).
PURPOSE:
CBP uses this form to collect information which allows the agency to correctly calculate the duty on imported merchandise. This
form includes details on actual costs of goods and helps the importer determine, and CBP to verify, which costs are dutiable and
which are not. CBP uses the information provided on the CBP form 247 to substantiate actual costs to establish the appraised value
and assessment of duties. This form is also by CBP import specialists as a supporting document for reconciliation processing as part
of the post release process.
ROUTINE USES:
DHS may use information submitted by individuals. Disclosures generally permitted under the Privacy Act, all or a portion of the
records or information contained in this system may be disclosed outside DHS as a routine use pursuant to 5 U.S.C. 552a (b)(3); and
with another government agency if the inquiry relates to that agency, or as otherwise required by law as a “routine use” pursuant to
its published Privacy Act system of records notice associated with this form: DHS/CBP-010 Persons Engaged in International Trade in
Customs and Border Protections Licenses/Regulated Activities, DHS/CBP-014 Regulatory Audit Archive System (RAAS) System of
Records, and CBP-001 Import Information Systems (IIS), July 26, 2016, (81 FR 48826). The Department’s full list of system of records
notices can be found on the Department's website at http://www.dhs.gov/system-records-notices-sorns.
CONSEQUENCES OF FAILURE TO PROVIDE INFORMATION:
Providing this information is voluntary. However, omissions or failure to provide this information which may result in the under
payment of duties could result in the assessment of penalties under the provisions of Section 592, Tariff Act of 1930.

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