A foreign manufacturer transfers a shipment of merchandise to its wholly-owned U.S. subsidiary. There is no sale involved and the deductive value method is being used as the basis of appraisement. The imported merchandise is further processed by the importer and is not sold before the close of the 90th day after the date of importation. The further processed merchandise is, however, being sold before the 180th day after the date of importation. The imported merchandise is appraised at the unit price of the imported merchandise after further processing that is sold in the greatest aggregate quantity before the 180th day after the date of such importation, minus the further processing costs and other authorized deductions. This method of appraisement under deductive value is permitted because of which ONE of the following conditions?
A) All other methods of appraisement have been exhausted.
B) Although the transaction value method is acceptable, the importer has elected this method of appraisement in lieu thereof.
C) The final condition of the merchandise cannot be readily determined at the time of importation.
D) The importer has elected this method of appraisement at the time of filing the entry summary and there is sufficient information regarding the costs of further processing.
E) The importer has elected this method of appraisement because the provision was not used within the past 90-day period.
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The Answer is: D
Citation: 19 CFR 152.105(c)(3)
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