Do you have a Related Party transaction per US Customs?

What is a related party?

U.S. Customs looks at the seller and buyer to determine if there was a relationship per the definition of U.S. Customs. This is important because that relationship may affect the price, which may affect the value being declared on the Customs entry. This concept is similar to expecting a family discount if you purchase something from your brother.  

To determine if any of your transactions are between a related party, consider the following:

Is the Importer of Record related to the Seller of the merchandise?

1. Do the buyer and the seller have any members of the same family? This includes brothers, sisters (whether whole or half blood relatives), spouse, ancestors and lineal descendants. 
2. Do the buyer and seller share any Officers or Directors? Having an officer or director of an organization and an officer or director of another organization, if each individual also is an officer or director in the other organization.
3. Do the buyer and seller have any of the same Partners?
4. Do the buyer and seller share any employees?
5. Do the buyer and seller have any person directly or indirectly owning, controlling, or holding with power to vote, five percent or move of the outstanding voting stock or shares of their organization, and the other organization?
6. Do the buyer and seller have any other person directly or indirectly controlling or controlled by, or under common control of the other?

If any of the above apply, the transaction is considered to be a Related Party transaction and should be flagged as such on the Customs entry.  

Please refer to this Customs Informed Compliance document for further details on why this is important to US Customs.

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Importer of Record

Blind Shipment