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

Price: The price used is the unit price at which
the greatest aggregate quantity of the merchandise
being appraised, after further processing,
is sold before the 180th day after the date of
importation.
This third price is also known as the “further
processing price” or “superdeductive.”
Additions. Packing costs for the merchandise
concerned are added to the price used for
deductive value, provided these costs have not
otherwise been included. These costs are added
regardless of whether the importer or the buyer
incurs the cost. “Packing costs” means the cost
of:
■
All containers and coverings of whatever
nature; and
■ Packing, whether for labor or materials,
used in placing the merchandise in condition,
packed ready for shipment to the
United States.
Deductions. Certain items are not part of
deductive value and must be deducted from
the unit price. These items are as follows:
■
■
■
Commissions or profit and general
expenses: Any commission usually paid or
agreed to be paid, or the addition usually
made for profit and general expenses,
applicable to sales in the United States of
imported merchandise that is of the same
class or kind as the merchandise concerned,
regardless of the country of exportation.
Transportation/insurance costs: The usual
and associated costs of transporting and
insuring the merchandise concerned from
(a) the country of exportation to the place
of importation in the United States, and
(b) the place of importation to the place of
delivery in the United States, provided
these costs are not included as a general
expense under the preceding item 1.
Customs duties/federal taxes: The customs
duties and other federal taxes
payable on the merchandise concerned
because of its importation plus any federal
excise tax on, or measured by the value of,
such merchandise for which sellers in the
United States are ordinarily liable.
■ Value of further processing: The value
added by processing the merchandise after
importation, provided that sufficient information
exists concerning the cost of processing.
The price determined for deductive
value is reduced by the value of
further processing only if the third unit
price (the superdeductive) is used as
deductive value.
Superdeductive. The importer has the option
to ask that deductive value be based on the further
processing price. If the importer makes
that choice, certain facts concerning valuing the
further-processing method, termed “superdeductive,”
must be followed.
Under the superdeductive method 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, but is
sold before the 180th day after the date of
importation.
Under this method, an amount equal to
the value of the further processing must be
deducted from the unit price in determining
deductive value. The amount so deducted must
be based on objective and quantifiable data
concerning the cost of such work as well as any
spoilage, waste or scrap derived from that
work. Items such as accepted industry formulas,
methods of construction, and industry
practices could be used as a basis for calculating
the amount to be deducted.
Generally, the superdeductive method
cannot be used if the further processing
destroys the identity of the goods. Such situations
will be decided on a case-by-case basis for
the following reasons:
■
■
Sometimes, even though the identity of
the goods is lost, the value added by the
processing can be determined accurately
without unreasonable difficulty for
importers or for the Customs Service.
In some cases, the imported goods still
keep their identity after processing but
form only a minor part of the goods sold
in the United States. In such cases, using
the superdeductive method to value the
imported goods will not be justified.
IMPORTING INTO THE UNITED STATES
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