Expanding into the U.S. is a major growth step for UK-based brands. But with opportunity comes complexity, especially around tariffs and customs compliance. For brands, which operate a U.S. subsidiary, the way you declare customs value directly impacts both compliance and costs.
With Shopify running your direct-to-consumer sales and Mintsoft powering warehouse and fulfilment, it’s vital to ensure customs valuation is configured correctly in your tech stack.
The Transaction Value Method Explained
Under U.S. Customs and Border Protection (CBP) rules and the WTO Valuation Agreement, the Transaction Value Method is the standard way to determine customs value.
This method defines customs value as the price actually paid or payable for goods when sold for export to the U.S., excluding retail markups, marketing spend, or other domestic costs.
That means when your U.S. customers buy through Shopify, you don’t declare their retail checkout price. Instead, you declare the value paid by the importer, which could be:
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Wholesale price
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Ex-factory price
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Transfer price between related entities
For brands with a U.S. subsidiary acting as importer, the transfer price is the correct basis.
Transfer Pricing in Practice
When goods move from the UK entity to the U.S. subsidiary, the customs declaration should use the agreed transfer price. This is acceptable under CBP rules if it’s set on an arm’s length basis and properly documented.
This distinction matters, because:
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Declaring the Shopify retail price would overstate duty costs.
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Declaring below a substantiated transfer price could risk penalties.
By managing customs value at the intercompany level, brands can keep tariff costs accurate and audits clean.
Where Shopify & Mintsoft Fit In
Shopify handles the customer-facing sales order, while Mintsoft manages warehousing, fulfilment, and shipping documentation. The two systems need to be tightly connected so that:
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Orders in Shopify are passed to Mintsoft with the right product and pricing data.
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Mintsoft generates customs invoices using the transfer price, not the retail price.
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Tariff codes (HS codes) and duty rates are applied consistently across all exports.
This integration ensures the declared value on customs paperwork reflects the transfer pricing rules, not the Shopify checkout amount.
We leverage Patchworks for all of our integrations as it makes life easy and is ISO 27001 secure.
Why It Matters for Growing Brands
Correctly applying customs valuation rules in a connected Shopify–Mintsoft stack delivers real advantages:
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Cost control: Avoids paying tariffs on inflated retail values.
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Audit readiness: Supports compliance if CBP reviews your valuation method.
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Margin clarity: Ensures you know your true landed cost when goods enter the U.S.
For brands scaling quickly in fashion and lifestyle sectors, getting this right early protects profitability and keeps growth on track.
The Cogent2 Difference
Our consultants at Cogent2 work with high-volume Shopify merchants who rely on Mintsoft for fulfilment. We go deep into system design to ensure Shopify order data and Mintsoft customs documentation stay aligned with transfer pricing rules.
With our background integrating global brands like Castore, Cult Furniture and Lounge, we understand the importance of connecting sales, ERP, and warehouse systems to manage tariffs effectively. By automating data flows, we help minimise errors, reduce concurrency usage, and keep compliance smooth as your brand scales.
Summary
When selling into the U.S., Shopify brands with Mintsoft fulfilment must declare customs value based on the transaction value method. For subsidiaries, this means using the transfer price between entities, not the final retail sale. Ensuring Shopify and Mintsoft are properly connected around this principle reduces costs, supports compliance, and keeps your U.S. operations running effectively.
If you need help aligning Shopify and Mintsoft for U.S. customs and tariff compliance, Cogent2’s team of experts can guide you. We automate complexity, connect systems, and free your business to focus on growth.
