HQ 546097 - Application for Further Review of Protest Number 2904-95-100146; price paid or payable; 19 U.S.C.1401a(b)(1) - United States International Trade Commision Rulings

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HQ 546097

March 7, 1996

RR:IT:VA 546097 RSD

CATEGORY: VALUATION

Port Director
United States Customs Service
511 NW Broadway
Portland, Oregon 97209

RE: Application for Further Review of Protest Number 2904-95-100146; price paid or payable; 19 U.S.C.1401a(b)(1)

Dear Director:

This is in response to the memorandum dated August 4, 1995, from the District Director of the former Columbia-Snake River District forwarding the application for further review of Protest Number 2904-95-100146, filed by the importer, Tyco Manufacturing Corp. (hereinafter Tyco) concerning the appraisement of an imported toy, the Baby Giggles N Go Doll. The protest is the lead protest for other protests that concern the same issue. It is our understanding that you have already disposed of the GSP issue that was raised in the protest. We regret the delay in responding.

FACTS:

The merchandise at issue was imported on September 30, 1993. Tyco maintains that the entered value of the doll was incorrect because the unit price of the doll was miscalculated. The doll was entered at a unit price of $13.99212, but Tyco claims that the correct price is $11.60542.
In support of its claim, Tyco has submitted a letter dated January 31, 1994, from its import supervisor to its Customs broker, Barthco, which states that there was a reduction in price. A document labeled as a "credit note" prepared by Tyco (Hong Kong) Limited dated November l5, 1993, was attached to the letter. This document shows the original invoice amount, a summary of the total revised purchase price, and a revised total amount to be paid. There is also an undated summary of revised invoices of Baby Giggles N Go Doll listing both the original and the revised invoice amounts. There is no indication who prepared this summary.

ISSUE:

Whether the merchandise was correctly appraised based on the price reflected on the invoices submitted at the time of entry?

LAW AND ANALYSIS:

As you know, merchandise imported into the United States is appraised in accordance with section 402 of the Tariff Act of 1930, as amended by the Trade Agreements Act of 1979 (TAA: 19 U.S.C. ? 1401a). The preferred method of appraisement is transaction value, which is defined by ?402(b)(1) as the "price actually paid or payable for merchandise when sold for exportation to the United States," plus certain enumerated additions specified in ?402(b)(1)(A) through (E). For the purposes of this decision, we have assumed that transaction value is the appropriate basis of appraisement. Section 402(b)(4) of the TAA provides that any rebate of or other decrease in the price actually paid or payable effected after merchandise is imported into the U.S. is to be disregarded in determining transaction value. 19 U.S.C. 1401a(b)(4)(B).

In this instance, we find that the documentation provided with the protest does not establish that the prices shown on the invoice presented at entry were incorrectly calculated or that there was a reduction in the selling price of the merchandise before it was imported into the United States. The merchandise was imported into the United States on September 30, 1993, but the "adjustment invoice" or "credit note" presented by the protestant is dated November 15, 1993. The "adjustment invoice", dated after entry of the imported merchandise does not discredit the price shown on the invoice dated before entry of the merchandise. No other evidence was presented that the lower price was agreed to prior to importation or that the lower price was paid. Accordingly, the alleged price change was properly disregarded in appraising the imported merchandise.

HOLDING:

Based on the facts provided, the merchandise was appraised correctly. You are directed to deny the protest. A copy of this decision with the Form 19 should be sent to the protestant. In accordance with Section 3A(11)(b) of Customs Directive 099 3550-065, dated August 4, 1993, Subject: Revised Protest Directive, this decision should be mailed by your office to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry in accordance with the decision must be accomplished prior to mailing of the decision. 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 to the public via the Diskette Subscription Service, the Freedom of Information Act and other public access channels.

Sincerely,

Acting Director
International Trade Compliance

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