The importer, a construction company, purchased construction cranes from a foreign supplier. Due to the size of the cranes, they are exported to the United States unassembled. The assembly of the cranes by employees of the supplier, after importation, is included in the purchase price and separately identified on the invoice. The assembly charge is reasonable for the work to be performed. Transaction value is the proper method of appraisement. Based upon these facts, which statement below is correct?(2022 October No.33 – Value)
A) Because the charge for the post-importation assembly of the merchandise is separately identified on the foreign supplier’s invoice to the importer and is reasonable for the work performed, the charge for the assembly is included as an assist in transaction value and is dutiable.
B) Because the charge for the post-importation assembly of the merchandise is separately identified on the foreign supplier’s invoice to the importer and is reasonable for the work performed, the charge for the assembly is included in transaction value and is dutiable.
C) Because the charge for the post-importation assembly of the merchandise is included in the definition of the price actually paid or payable, whether or not separately identified on the foreign supplier’s invoice to the importer or reasonable for the work performed, the charge for assembly is included in transaction value and is not dutiable.
D) Because the charge for the post-importation assembly of the merchandise is for services rendered in the United States and is payable to the foreign supplier, the charge for assembly is a domestic fee that is excluded from transaction value and is dutiable.
E) Because the charge for the post-importation assembly of the merchandise is separately identified on the foreign supplier’s invoice to the importer and is reasonable for the work performed, the charge for the assembly is excluded from transaction value and is not dutiable.
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The Answer is: E
Citation: 19 CFR 152.103(i)
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