CHAPTER XIV TRANSACTION VALUE

1
CHAPTER XIV TRANSACTION VALUE

• Transaction Value of Imported Merchandise
• Transaction Value of Identical Merchandise
• Transaction Value of Similar Merchandise
• Deductive Value
• Computed Value

2
Transaction Value of Imported Merchandise

• The price actually paid or payable for the
  merchandise for exportation to the United States,
  
• plus amounts for the following items if not
  included in the price
• The packing costs incurred by the buyer.
• Any selling commission incurred by the buyer
• The value of any assist
• Any royalty or license fee that the buyer is
  required to pay as a condition of the sale.

3
Transaction Value of Imported Merchandise

• Assists
• Items that the buyer provides free of charge or
  at a reduced cost for use in the production or
  sale of the goods for export to the United States
• Materials, components, parts
• Tools, dies, molds
• Merchandise consumed in producing imported goods
• Engineering, development, artwork, design work,
  and plans and sketches that are undertaken
  outside the United States

4
Transaction Value of Imported Merchandise

• Exclusion
• The freight, insurance and other expenses from
  the country of exportation to the place of
  importation in the U.S.
• The costs for technical assistance after
  importation
• Transportation cost after importation
• Import duties and other Federal taxes

5
Transaction Value of Imported Merchandise

• Limitations The transaction value cannot be used
  as the appraised value
• Restrictions on the disposition of the
  merchandise
• Condition for which a value cannot be determined
• Proceeds of any subsequent resale accruing to the
  seller, for which an appropriate adjustment to
  transaction value cannot be made
• Related-party transactions where the transaction
  value is not acceptable.

6
Transaction Value of Imported Merchandise

• For related-party transactions to be acceptable
• Transaction value of identical merchandise or of
  similar merchandise sold to unrelated buyers in
  the U.S.
• Deductive value or Computed value for identical
  or similar merchandise.
• Value by the Advance Pricing Agreement(APA) with
  the Internal Revenue Service (IRS)

7
Alternative Valuations

• Transaction Value of Identical Merchandise
• Transaction Value of Similar Merchandise
• Deductive Value
• Computed Value

8
Transaction Value of Identical Merchandise

• Identical in all respects to the merchandise
  being appraised
• Produced in the same country as the merchandise
  being appraised
• Produced by the same person as the merchandise
  being appraised
• All three criteria or the first two criteria

9
Transaction Value of Similar Merchandise

• Produced in the same country and by the same
  person
• Like merchandise being appraised in
  characteristics and component materials
• Commercially interchangeable with the merchandise
  being appraised
• All three criteria or all other criteria but
  produced by the different person

10
Deductive Value

• The resale price in the United States after
  importation of the merchandise, with deductions
  for certain items
• Items to be deducted from the unit resale price
• Commission or profit and general expenses
• Transportation and insurance cost from the port
  of exportation to the place of resale.
• Custom duties and federal taxes
• Value of further processing
• If an assist is involved, Deductive value cannot
  be used. Use the Computed Value instead.

11
Computed Value

• The sum of various costs up to exportation
• Materials, fabrication, and other processing
• Profit and general expenses of the producer
• Any assist, if not included in items 1) and 2)
• Packing costs
• Importer can designate either Deductive Value or
  Computed Value.