February 27, 2013 1:24 PM Subscribe
How much money is the US government losing, and how much revenues are US exporters losing, due to the US government assessing import custom duties at FOB value instead of landed (CIF) value like the rest of the world does?
posted by Dansaman to Law & Government 1 user marked this as a favorite
I was surprised to learn that other countries include shipping costs (i.e., they use "landed" or CIF cost) in assessing the value of imports for application of customs duties. It's my understanding that the US government doesn't do that because of the Uniformity Clause and the Port Preference Clause in the US Constitution.
By using that lower basis for assessing duties, unless it is making up for it in a higher duty rate the US government is taking in less revenue from customs duties than it would otherwise. Is there any information about how much that difference is on an annual basis?
Certainly this also puts US exporters at a disadvantage. Is there any information that quantifies the amount of that disadvantage in annual lost revenues?