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HQ 545994

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May 11, 1995

VAL-R:C:V 545994 EK

CATEGORY: VALUATION

District Director
San Francisco, California

RE: Application for further review of Protest No. 2809-94-101526

Dear Sir:

This is in response to the application for further review of the protest referenced above.

FACTS:

The importer entered 2,500 cameras from Taiwan into the United States. The entered value was $95,645 which covered 2,000 cameras purchased at a unit price of $36.27 and 500 pieces at a unit price of $46.27. These prices were agreed to between the parties and the cameras were appraised pursuant to their transaction value, i.e., the price actually paid or payable for the merchandise when sold for exportation to the United States. The cameras were exported on April 12, 1994. Subsequently, the seller decreased the price of the cameras and issued a credit note to the buyer for the difference in price. No explanation has been provided with respect to the reason for the decrease in price.

The protestant requests that the merchandise be appraised pursuant to the amended price.

ISSUE:

Whether the merchandise should be appraised pursuant to a price which was decreased subsequent to the exportation of the merchandise.

LAW AND ANALYSIS:

The merchandise was appraised pursuant to transaction value, section 402(b) of the Tariff Act of 1930, as amended by the Trade Agreements Act of 1979, (TAA).

Transaction value is defined as the "price actually paid or payable when sold for exportation to the United States". When the merchandise in this case was sold for exportation to the United States, the price had been established. The appraising officer correctly based the transaction value on this price.

In addition, it is well-established that any rebate, or decrease in price, effected between the buyer and seller, after the merchandise has been sold for exportation to the United States, is disregarded. (Section 402(b)(4)(B) of the TAA).

HOLDING:

The appraising officer correctly based the transaction value upon the entered value. You are directed to DENY this protest in full. In accordance with Section 3A(11)(b) of the Customs Directive 099 3550-065, dated August 4, 1993, Subject: Revised Protest Directive, this decision should be mailed b your office to the protestant no later than 60 days from the date of this letter. Sixty days from the date of the decision the Office of Regulations and Rulings will take steps to make the decision available to Customs personnel via the Customs Rulings Module in ACS and the public via the Diskette Subscription Service, Lexis, Freedom of Information Act and other public access channels.

Sincerely,

John Durant, Director

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