Legal Definitions - merchant appraiser

A merchant appraiser is an independent expert chosen by a customs officer, but only at the specific request of an importer, to reassess the value of goods brought into a country. This re-evaluation is done to ensure the correct amount of customs duties and taxes are applied. The individual appointed as a merchant appraiser typically has extensive experience buying, selling, or dealing with the exact type and quality of goods being reviewed, giving them specialized knowledge of their market value.

Here are some examples illustrating when a merchant appraiser might be involved:

• Imagine a company that imports a large shipment of high-end, custom-built industrial machinery from overseas. When the machinery arrives at the port, customs officials assign a value that the importing company believes is significantly higher than the actual market price, which would result in much higher import duties. To challenge this valuation, the importer formally requests a merchant appraiser. Customs then appoints an expert who has a deep understanding of the market for specialized industrial equipment to provide an independent assessment of the machinery's true value, helping to resolve the dispute over the customs duties.

• A boutique art gallery imports a collection of rare, contemporary sculptures. Due to their unique nature and the fluctuating art market, determining an exact value for customs purposes can be challenging. Customs initially assigns a value based on general art market data, but the gallery owner believes this valuation doesn't fully account for specific artistic merits or recent market trends that could impact the dutiable value. The gallery owner requests a merchant appraiser—someone with expertise in valuing contemporary art—to provide a more precise and nuanced appraisal, ensuring the customs duties reflect the true market value of the sculptures.

• Consider a large electronics retailer importing a new model of high-tech smart devices. Customs flags the declared value of the shipment, suspecting it might be undervalued compared to similar products on the international market, which could lead to lower duties being paid. The retailer, confident in their declared value, requests a merchant appraiser. Customs then selects an expert with extensive experience in the electronics trade to independently examine the devices and their documentation, verifying whether the declared value is accurate for customs assessment.