how to categorize import duty / tax

rps

I'm wondering which accounting category to use when I import goods which are components that go into a product that I then assemble and sell in my own country? I was thinking of just recording them under 'Freight and shipping costs', which would then be in the 'cost of goods sold' category for me, but not sure if this makes sense?

A little background: I'm a US based single-member LLC, and I account with an accrual system.

CallieP

Hi @rps , thanks for reaching out! That’s a great question. I'm afraid I'm not able to provide advice on this, though, as we admins here in Community Support are not accountants - we're here to help with 'how to do' rather than 'what to do', and so must defer to an accounting professional if you're not sure what accounts would be correct. As I understand it, using a COGS account is okay for this, but again, an accountant will be best able to advise on this with certainty. If any other Community members are accountants in your region, perhaps they can come lend a helping hand!