Currency Conversion is the process of restating foreign-currency invoice values in U.S. dollars for customs purposes. Under 31 U.S.C. § 5151 and 19 CFR § 159.32–§ 159.38, conversion uses the exchange rate certified by the Federal Reserve Bank of New York for the date of export of the merchandise.
Key rules:
- The applicable rate is the rate in effect on the date of export — not the date of entry, the date of invoice, or the date of payment
- Quarterly rates are published by CBP for major currencies (the "FRBNY rates")
- For currencies not quarterly-published, the daily rate applies
- The rate used must be documented in the entry record
For multi-shipment transactions, each shipment uses the rate in effect on its individual date of export. For related-party transactions where price is set in foreign currency, year-end transfer pricing true-ups must be reconverted using historical export-date rates — not the rate at the time of true-up. This is a common error.
Hedge contracts, forward-rate locks, and currency-swap arrangements do not affect customs value. The rate is determined by the FRBNY-certified rate on the date of export, regardless of the rate at which the importer actually settled the underlying invoice.
The CBP exchange-rate table is published at cbp.gov and is the official source for entry filings. Brokers and importers should not use Bloomberg or other third-party rates for customs value.
Misstated exchange rates can understate or overstate customs value — both are reportable errors under 19 U.S.C. § 1592 and may require prior disclosure or post-summary correction.