Customs Aruba met with CUA and ATIA on the change regarding a discount on

ORANJESTAD - On September 1, 2022, Customs met with Comerciantenan Uni Aruba (CUA) and Aruba Trade & Industry Association (ATIA) to discuss the calculation of customs value as far as invoice discounts are concerned.

The purpose of this meeting was to clarify for the industry associations the handling of invoice discounts for imported products.

Online shoppingDuring this meeting, Customs experts on value explained that there are different discounts that Customs accepts and some that it does not.

If there is a price reduction on an invoice without any specification, such as when it says "discount," Customs will not accept this discount because they do not know what kind of rebate it is. Currently, one can get various discounts on online purchases, for example, on eBay, Amazon, and Walmart, that apply to everyone equally. Therefore Customs had to reevaluate the way of accepting rebates on unspecified invoices. Currently, if it is a rebate for online shopping, Customs accepts it without specification:

  • If the discount applies to everyone;
  • The invoice is the end of the sale. It is not an invoice on which they removed the sales tax or rebate or changed the price.

What still applies is that Customs will not accept a (domestic) transportation rebate.

If you get a discount on transportation (domestic), you must declare the regular price for the same route.

Customs brokers that receive an invoice from the importer that does not correspond to what was specified do not have to file a declaration with Customs to demand the invoice that is valid for everyone. To avoid the discussion, you can submit the invoice received for online shopping as soon you make the payment. Customs can demand it if it has doubts.

The policy that specifies that you must state discounts on the invoice is still applicable. For example, if an invoice shows a discount in exchange for advertising the product, Customs will not accept it.

Finally, Customs is implementing a rate change in the cash discount rate from 3% to 5%.

This policy change related to discounts on online shopping products, and the 5% cash discount became effective on September 13, 2022.

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