Gadgets & Widgets (Gadgets) is an importer of exactly that. It imports from a sister company that manufactures its merchandise in Mexico. Upon review, you have determined that the relationship influences its transactions and transaction value is not a valid basis of appraisement. Its current shipment consists of 100,000 stylized potato peelers and 50,000 fancy injected molded corkscrews with a titanium screw bit. Since there are no sales of identical or similar merchandise available, deductive value is next on the hierarchy. However, Gadgets decides to opt for computed value. Gadgets provides the following list of the manufacturing costs for this one-time shipment: Supplied by Gadgets: Mold, 100,000 unit life-span for corkscrews 18000 Titanium Screw Bits 50000 2 molds, 50,000 unit life-span each for peelers $6,000 each Supplied by the manufacturer: Manufacturing costs 9000 Packing 4500 Internal Mexican taxes that are not refunded 600 Plastic pellets 2000 Dye 400 General expenses 700 Profit 3500 As you review the list, you determine that the amount for general expenses is too low and the amount of profit is too high to be consistent with those usually reflected in sales of imported merchandise of the same class or kind. However, when you add the costs together, the total amount becomes consistent with the total amount usually reflected in sales of imported merchandise of the same class or kind. Which ONE of the following is the computed value of this shipment?
A) 94100
B) 100700
C) 91700
D) 95900
E) 20700
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The Answer is: B
Citation: 19 CFR 152.106
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