HQ 544167: Decision on Application for Further Review of Protest No. 3801-5-001300

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 544167


                                        April 5, 1988

          CLA-2 CO:R:CV:V  544167 EK


          CATEGORY:  Valuation

          District Director of Customs
          Detroit, Michigan

          RE:  Decision on Application for Further Review of Protest
               No. 3801-5-001300

          Dear Sir:

                This protest was filed against your decision in the
          liquidation of Entry No. 84-265184 dated September 26, 1984.  The
          protesting party is disputing the inclusion of foreign inland
          freight in the transaction value of imported merchandise pursuant
          to section 402(b) of the Tariff Act of 1930, as amended by the
          Trade Agreements Act of 1979 (TAA; 19 U.S.C. 1401a(b)).


          FACTS:

                The above-referenced protest concerns the dutiability of
          alleged foreign inland freight charges incurred upon shipping
          cold-rolled steel coils manufactured in East Germany and sold by
          a West German steel company.

                The importer states that the inland charges from the
          East/West German border to Hamburg are a deductible item from
          transaction value.  The importer indicates that the consumption
          entry with respect to the merchandise incorrectly stated West
          Germany when, in fact, the country of exportation should have
          been East Germany.

                The protestant claims that the steel was destined for the
          United States at the time it left the East German mill.  Customs
          is of the opinion that the appraised value should be based upon
          the terms of sale FOB Hamburg.  




















                                        - 2 -


                In this case, the invoice indicates a sale from Klockner
          Stahl, West Germany to Klockner Inc., New York.  The invoice
          states that the risk of loss passes to the importer in Hamburg,
          not at the East German mill.


          LAW AND ANALYSIS:

                Transaction value is defined in section 402(b) of the TAA
          as the "price actually paid or payable for the merchandise when
          sold for exportation to the United States . . . " .  The term
          "price actually paid or payable" is further defined in section
          402(b)(4)(A) as:

                . . . the total payment (whether direct or
                indirect, . . . ) made, or to be made, for
                imported merchandise by the buyer to, or for
                the benefit of, the seller.

                In this case, it is our conclusion that for purposes of
          determining transaction value, the merchandise was sold for
          exportation to the United States from Hamburg, West Germany.
          There is no evidence available to substantiate the importer's
          claim that the goods were "sold" for exportation to the United
          States from the East German mill.


          HOLDING:

                In view of the foregoing, the protest should be denied in
          full.  A copy of this decision should be attached to the Form 19,
          Notice of Action, to be sent to the protestant.

                                        Sincerely,




                                        John Durant
                                        Acting Director, Commercial
                                        Rulings Division