In LVS shipments, what is not included in computing the value for LVS purposes?

In the context of LVS (Low Value Shipment) shipments, the value for LVS purposes typically includes the costs directly associated with the goods being shipped, such as their purchase price and other necessary costs to get the goods ready for shipment. However, shipping costs are not included in this value assessment.

Shipping costs refer to the expenses incurred to transport the goods from the seller to the buyer. When calculating the value for LVS purposes, the focus is primarily on the intrinsic value of the goods themselves, not on the external costs associated with their transportation. By excluding shipping costs, authorities attempting to determine the taxable value of low-value shipments can ensure a clearer assessment of the actual value of the merchandise being imported.

On the other hand, insurance fees, packaging costs, and customs duties are generally included in the valuation for LVS because they directly contribute to the overall cost associated with bringing the goods into a country or making them saleable. This differentiation helps customs authorities efficiently process low-value shipments while ensuring compliance with relevant regulations.