U.S. Customs Form: CBP Form 247 – Cost Submission

U.S. Customs and Border Protection Form 247 is used to submit to Customs the actual costs of producing an item.  In cases where there is relatedness (i.e., a mutual owner) between the supplier and importer of a product, Customs may not accept the declared value paid for the products as their true value. After all, the importer and supplier would have an incentive to lower the price paid for the goods to reduce the duties paid.  So in these cases, Customs may require information about the true costs of producing the goods, and from there they will add an allowance for the supplier to make a “reasonable” profit.  This form is used to make the declaration as to those costs.