An importer provides a machine to a manufacturer free of charge, for use in the production of imported merchandise. The machine cost was $50,000 and the cost for transporting the machine to the manufacturing facility was $4,500. Which declaration would be appropriate for the entered value of the machinery?
A. On the first shipment, declare $50,000, the value of the machine.
B. Pro-rate the cost of the machine, $50,000 over the number of units produced up to the time of the first shipment.
C. Pro-rate the cost of transporting the machine to the manufacturing facility, $4,500 over the number of units produced up to the time of the first shipment.
D. On the first shipment, declare $54,500, the value of the machine plus the cost of transporting the machine to the place of production.
E. It is not necessary to report the machinery to CBP since it is not imported into the United States.
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The Answer is: D
Citation: 19 CFR 152.103
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