Customs Rate

Summary of Customs Rate

The rate of exchange employed by U.S. Customs in converting foreign currency invoices for the purpose of arriving at a value, in U.S. dollars, for imported merchandise. Ad valorem duties are applied on the dollar value. In accordance with the Customs Simplification Act of 1956, the secretary of the treasury proclaims, on a quarterly basis, the rates of exchange to be used by the Customs Service. As a matter of procedure, the secretary proclaims the rate used in the first market transaction of each quarter, as certified by the Federal Reserve Bank of New York. The rate so proclaimed is used throughout the quarter, unless the rate for any day varies by more than 5 percent from the certified rate.

(Main Author: William J. Miller)