HQ 544243: Request for Ruling

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                                  HQ 544243

                                  October 24, 1988

          CLA-2 CO:R:C:V  544243 EK

          CATEGORY:  Valuation

          Cecilia Castellanos
          Edward S. Zerwekh Company
          P.O. Box 368
          Wilmington, California  90748

          RE:  Request for Ruling

          Dear Ms. Castellanos:

                This is in response to your letter of September 6, 1988,
          requesting a ruling as to the proper valuation of merchandise
          imported by your client.

          FACTS:

                You state that the merchandise in question will be entered
          under the Generalized System of Preferences (GSP).  You are not
          inquiring and this letter will not address the GSP eligibility
          requirements and whether they are met in the instant situation.

                You indicate that there may be assists involved with the
          importation and you are inquiring as the proper declaration
          and valuation of the assists.  Since your letter does not
          disclose specific details regarding the nature of the assists,
          then this letter is to be treated as an "information letter"
          pursuant to section 177.1(d)(2) of the Customs Regulations,
          19 CFR 177.1(d)(2).

          ISSUE:

                What is the proper method of declaring the assists and how
          will their value be determined?

          LAW AND ANALYSIS:

                With respect to declaration of the assist, section
          152.103(e)(1) of the Customs Regulations allows for the
          apportionment of the value of assists to imported merchandise to
          be made in a reasonable manner appropriate to the circumstances

















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          and in accordance with generally accepted accounting principles.
          The regulation further provides that if the entire anticipated
          production using the assist is for exportation to the United
          States, then the total value may be apportioned over the first
          shipment.  Duty is then paid on the entire value at once.

                Regarding the value of the assist, section 152.103(d)(1)
          and (2) of the Customs regulations states that, depending upon
          the type of assist, the value is either the cost of its
          acquisition or the cost of its production.  In either case, the
          value of the assist includes transportation costs to the place of
          production.

                Please note that it is possible to depreciate an assist to
          a zero value.  In Headquarters Ruling No. 543233 CW dated August
          9, 1984, the books and records of the importer reflected a zero
          value for a mold in accordance with generally accepted accounting
          principles.  In that case, we held that the value of the assist
          was limited to the costs and expenses incurred in transporting
          the assist to the place of production.

          HOLDING:

                Therefore, if in accordance with generally accepted
          accounting principles, the value of the assist which you are
          providing to the seller has been fully depreciated according to
          your records, then the value of the assist will be equal to the
          cost of transporting the assist to the place of production.

                                        Sincerely,




                                        John Durant, Director,
                                        Commercial Rulings Division