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Reporting Values for Repair

Thu Jan 21 2010
Selina Ferguson
Component ID: #ti1932200425

Picture this…you’re sitting at your computer, in the zone, ready to enter all of today’s export shipment information. You’re completing your Electronic Export Information (EEI) with no problem, just rolling right along from field to field. All of a sudden, when you’re more than half-way done, you get stumped by the Value field. Normally this wouldn’t be an issue for you, but today you are filing an item that is being re-exporting after coming into the U.S. for repair (take a breath) and you’re wondering what is the correct value to report?

Component ID: #ti1847208819

Let’s look at an example. A company in California exports a machine worth $20,000 to France and files the EEI with this value upon the original export of the good. After a few months, the machine is returned to the U.S. for repair. To complete the repair, the company ended up incurring a cost of $3,000 for replacement parts and $1,200 for labor. The company also had to pay $500 for freight, insurance and other charges to get the repaired item to the port of export. The total cost to the California company for repairing the machine amounted to $4,700. Which value should you report, $20,000 for the machine or $4,700 for the cost to repair it? In this example, the total cost of $4,700 is the correct value that should be entered in the EEI when the repaired machine is exported back to France.

Component ID: #ti1346184804

Calculating U.S. Repair Value

Replacement Parts

$3,000

Labor Costs

$1,200
Charges to Port of Export $500
Total Value to Report on EEI for Reexport $4,700

Component ID: #ti1346184805

Here’s what you need to remember when exporting repaired items:

Component ID: #ti1346184806

1. Report the value as the cost of parts and labor plus cost to get the good to the port of export, not the original selling price.

Component ID: #ti1346184807

2. Report the Schedule B number as 9801.10.0000, not the original Schedule B number.

Component ID: #ti1346184808

Reporting repairs can be found in30.29 of the FTR, but here’s a quick tip. Remember that we are collecting export data for statistical purposes. If you’ve already exported a good and filed the required EEI then the information for your good has already been captured. We don’t want to count that value twice so when the good is re-exported we only want to capture information for values that have not already been entered in the previous EEI. In the case of repairs, this value would be the cost of parts and labor for repairing the good plus freight, insurance and other charges to get the good to the port of export.

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