HQ 544308: Valuation

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 544308

                                     May 5, 1989

          CLA-2 CO:R:C:V  544308 DHS

          CATEGORY:  Valuation

          Ann L. Newton
          Fabrique de Fer de
           Charleroi (USA), Inc.
          88 Danbury Road
          Wilton, Connecticut 06897



          RE:  Valuation

          Dear Ms. Newton:

                This is in reference to your letter of February 14, 1989,
          regarding the valuation used by the Customs Service of imported
          steel plates.

                You state that your company purchases steel from a Danish
          steel mill.  The steel is manufactured in Denmark then shipped by
          vessel directly from the mill on the Danish coast to various
          European ports.  The steel is then placed upon another vessel and
          subsequently shipped to the United States.  In a majority of
          cases the bill of lading listing both vessels is dated when the
          steel leaves Denmark.

                At the present time, you allege that Customs is excluding
          the freight costs incurred as a result of shipping the steel from
          the mill to the European port as "foreign inland freight".

                You inquire whether the freight charges are dutiable as an
          addition to the transaction value as foreign inland freight or
          whether the charges are excluded as international freight from
          the "price actually paid or payable."

                The information you have submitted is too general for us to
          make a definitive determination on this issue.  Consequently,
          this letter is being treated as an information letter under
          section 177.1(d)(2), Customs Regulations (19 CFR 177.1(d)(2)).

                As provided in section 152.101, Customs Regulations (19 CFR
          152.101), the primary basis of appraisement is transaction value.
          Transaction value is defined as the "price actually paid or
          payable" for imported merchandise when sold for exportation to
          the United States.  This is more specifically defined in section
          402(b)(4)(A) of the Trade Agreements Act of 1979, (TAA; 19 U.S.C.
          1401a(b)(4)(A), as the following:










          The term "price actually paid or payable" means
          the total payment (whether direct or indirect, and






























































                                           - 2 -

                    exclusive of any costs, charges, or expenses
                    incurred for transportation, insurance, and
                    related services incident to the international
                    shipment of the merchandise from the country of
                    exportation to the place of importation in the
                    United States) made, or to be made, for imported
                    merchandise by the buyer to, or for the benefit
                    of, the seller. (emphasis added)

                It is clear freight costs involved in the international
          movement of merchandise from the country of exportation are to be
          excluded from the dutiable value of imported merchandise
          appraised using the transaction value basis.  The expenses
          related to foreign inland freight charges, however, are not
          covered by this provision.

                Section 152.103(a)(5), Customs Regulations (19 CFR
          152.103(a)(5)), regarding foreign inland freight provides:

                    (i) If the price actually paid or payable by the
                    buyer to the seller for the imported merchandise
                    does not include a charge for foreign inland
                    freight and other charges for services incident to
                    the international shipment of the merchandise (an
                    ex-factory price), those charges will not be added
                    to the price.

                    (ii) ...Charges for foreign inland freight and
                    other services incident to the shipment of the
                    merchandise to the United States may be considered
                    incident to the international shipment of that
                    merchandise within the meaning of the price
                    actually paid or payable if they are identified
                    separately and they occur after the merchandise
                    has been sold for export to the United States and
                    placed with a carrier for through shipment to the
                    U.S..

                Absent more detailed information regarding the ports
          involved in the movement of the imported merchandise, we are
          unable to make any additional comments regarding the dutiability
          [A the transportation charges.


                                        Sincerely,




                                        John Durant, Director
                                        Commercial Rulings Division