Importing into the United States - Indo-American Chamber Of ...

If merchandise meeting the foregoing criteria
cannot be found, then similar merchandise
is merchandise having the same country of production,
like characteristics and component
materials, and commercial interchangeability
but produced by a different person.
In determining whether goods are similar,
some of the factors to be considered are the
quality of the goods, their reputation, and existence
of a trademark.
■ Exclusion: Similar merchandise does not
include merchandise that incorporates or
reflects engineering, development, art
work, design work, and plans and
sketches provided free or at reduced cost
to the buyer and undertaken in the United
States.
Order of Precedence. It is possible that two or
more transaction values for identical (similar)
merchandise will be determined. In such a case,
the lowest value will be used as the appraised
value of the imported merchandise.
31. OTHER BASES: DEDUCTIVE AND
COMPUTED VALUE
DEDUCTIVE VALUE
If the transaction value of imported merchandise,
of identical merchandise, or of similar
merchandise cannot be determined, then
deductive value is calculated for the merchandise
being appraised. Deductive value is the
next basis of appraisement at the time the entry
summary is filed, to be used unless the
importer designates computed value as the preferred
method of appraisement. If computed
value was chosen and subsequently determined
not to exist for customs valuation purposes,
then the basis of appraisement reverts to
deductive value.
If an assist is involved in a sale, that sale
cannot be used in determining deductive value.
So any sale to a person who supplies an assist
for use in connection with the production or
sale for export of the merchandise concerned is
disregarded for purposes of determining
deductive value.
Basically, deductive value is the resale
price in the United States after importation of
the goods, with deductions for certain items. In
discussing deductive value, the term “merchandise
concerned” is used. The term means the
merchandise being appraised, identical merchandise,
or similar merchandise. Generally,
the deductive value is calculated by starting
with a unit price and making certain additions
to and deductions from that price.
Unit Price. One of three prices constitutes the
unit price in deductive value. The price used
depends on when and in what condition the
merchandise concerned is sold in the United
States.
1. Time and Condition: The merchandise is
sold in the condition as imported at or about
the date of importation of the merchandise
being appraised.
Price: The price used is the unit price at
which the greatest aggregate quantity of
the merchandise concerned is sold at or
about the date of importation.
2. Time and Condition: The merchandise
concerned is sold in the condition as
imported but not sold at or about the date of
importation of the merchandise being
appraised.
Price: The price used is the unit price at
which the greatest aggregate quantity of
the merchandise concerned is sold after
the date of importation of the merchandise
being appraised but before the close of the
90th day after the date of importation.
3. Time and Condition: The merchandise
concerned is not sold in the condition as
imported and not sold before the close of the
90th day after the date of importation of
the merchandise being appraised.
60 U.S. CUSTOMS SERVICE