Exporters: Who is the USPPI? It could be YOU!
From Global Reach~
The USPPI is the person or legal entity in the United States that receives the primary benefit, monetary or otherwise, from an export transaction. The following parties can be the USPPI:
- U.S. seller (wholesaler or distributor) of goods for export
- U.S. manufacturer (if selling the goods for export)
- U.S. order party (if directly negotiated between the U.S. seller and foreign buyer and received the order for the export of the goods)
- U.S. customs broker (obtains clearance of goods through customs)
- Foreign entity (if physically in the United States to purchase or obtain the goods)
Helpful tips to identify the USPPI
- The USPPI remains the same regardless of whether the transaction is standard or routed. For more information on the differences between standard and routed transactions, please see Clarification of Routed Transactions.
- The exchange of funds does not need to occur for an entity to be the USPPI. For example, a U.S. company exporting goods at no cost (i.e., donations, replacement parts) to a subsidiary abroad would be the USPPI.
To see 3 Identification scenarios – Global Reach
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