Buying Commission
Fee paid by the importer to its agent for the service of representing them in purchasing goods, excluded from customs value provided it is separate from the price.
Definition and Customs Treatment
A buying commission is the fee paid by an importer to its agent or representative for the service of finding, negotiating and purchasing goods abroad. Under Article 8(1)(a)(i) of the WTO Customs Valuation Agreement and Article 72 UCC, buying commissions are not included in the customs value, unlike selling commissions.
Distinction from Selling Commission
The characterisation of the commission is critical:
- Buying commission (excluded): the agent acts on behalf of the buyer, represents them and acts according to their instructions
- Selling commission (included): the agent acts on behalf of the seller and participates in the distribution of goods
The burden of proof lies with the importer.
Qualification Criteria
Customs authorities examine several indicators:
- Agency contract: existence of a written mandate defining the agent's mission
- Effective control: the buyer gives instructions, chooses suppliers and sets prices
- Separate remuneration: the commission is invoiced separately from the price of goods
- No commercial risk: the agent does not bear the risk of the goods
Best Practices
Companies must build a robust file including the agency contract, correspondence exchanges, proof of separate payment and demonstration of control exercised by the importer over the purchasing operations.