1 chapter xiv transaction value transaction value of imported merchandise transaction value of...

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CHAPTER XIV CHAPTER XIV TRANSACTION VALUETRANSACTION VALUE

Transaction Value of Imported Merchandise

Transaction Value of Identical Merchandise

Transaction Value of Similar Merchandise Deductive Value Computed Value

Copyright(c) 2012 Dr. Chase C. Rhee

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Transaction Value of Imported Transaction Value of Imported MerchandiseMerchandise

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

1)The packing costs incurred by the buyer. 2)Any selling commission incurred by the

buyer 3)The value of any assist 4)Any royalty or license fee that the buyer is

required to pay as a condition of the sale.


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Transaction Value of Transaction Value of Imported MerchandiseImported 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


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Transaction Value of Transaction Value of Imported MerchandiseImported 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


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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.



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 of the Advance Pricing Agreement(APA) with the Internal Revenue Service (IRS)

6Copyright(c) 2012 Dr. Chase C. Rhee

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Alternative ValuationsAlternative Valuations

Transaction Value of Identical Merchandise

Transaction Value of Similar Merchandise Deductive Value Computed Value


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Transaction Value of Identical Transaction Value of Identical MerchandiseMerchandise

1) Identical in all respects to the merchandise being appraised

2) Produced in the same country as the merchandise being appraised

3) Produced by the same person as the merchandise being appraised

All three criteria or the first two criteria


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Transaction Value of Similar Transaction Value of Similar MerchandiseMerchandise

1) Produced in the same country and by the same person

2) Like merchandise being appraised in characteristics and component materials

3) Commercially interchangeable with the merchandise being appraised

All three criteria or all other criteria but

produced by the different person


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Deductive ValueDeductive 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 1) Commission or profit and general

expenses 2) Transportation and insurance cost from

the port of exportation to the place of resale.

3) Custom duties and federal taxes 4) Value of further processing

If an assist is involved, Deductive value cannot be used. Use the Computed Value instead.


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Computed ValueComputed Value The sum of various costs up to

exportation

1) Materials, fabrication, and other processing

2) Profit and general expenses of the producer

3) Any assist, if not included in items 1) and 2)

4) Packing costs

Importer can designate either Deductive Value or Computed Value.


1 chapter xiv transaction value transaction value of imported merchandise transaction value of...

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