HQ 544453: Decision on Application for Further Review of Protest No. 2704-85-005542

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 544453
                                March 8, 1990
VAL CO:R:C:V  544453 ML


CATEGORY:  Valuation

District Director
Los Angeles District

RE:  Decision on Application for Further Review of Protest
     No. 2704-85-005542

Dear Sir:

     This protest was filed against your decision in the
liquidation of various entries made by ---------------., Inc. on
behalf of --------------- Importing, Inc.  The Merchandise was
appraised pursuant to section 402(b) of the Tariff Act of 1930,
as amended by the Trade Agreements Act of 1979 (19 U.S.C.
1401a(b); TAA).

FACTS:

     The imports in question are ceiling fans that were
manufactured in Hong Kong.  The price paid for these fans was
$34.20 at the time of their exportation.  Subsequent to their
importation into the United States, the seller ------, allowed
the buyer, --------------- to debit their account in an amount
consistent with a reduced unit cost of $32.20.

     Transaction value was determined to be the originally agreed
price of $34.20.  The importer argues that, as the price
actually paid or payable was reduced, the accessed duty should
also be reduced.

ISSUE:

     Whether the initially agreed upon price between the buyer
and the seller or the subsequent reduction in the price for the
merchandise, is the price actually paid or payable for the
merchandise when it was sold for exportation to the United
States.

LAW AND ANALYSIS:

     Transaction value, the preferred method of appraisement, 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..."  (emphasis added).  Section 402(b)(4) of the
TAA provides:



          Any rebate of, or other decrease in, the
          price actually paid or payable made or
          otherwise effected between the buyer
          and the seller after the date of
          importation of the merchandise into
          the United States shall be disregarded
          in determining the transaction value
          under paragragh (1).

     Based upon the evidence presented, the price of $34.20 was
the transaction value at the time of exportation.  The latter
price of $32.72 for the ceiling fans was one which was agreed
upon by the parties after the merchandise was imported into the
United States, and cannot be taken into account in the
calculation of transaction value under authority of section
402(b)(4)(B).

HOLDING:

     In view of the foregoing, the price actually paid or payable
was the initial contract price.  A latter agreed upon price will
not reduce the transaction value as the subsequent price was
reached only after the importation of the merchandise
into the United States.

     Accordingly, you are directed to deny this protest.  Please
send a copy of this decision and Notice of Action, Customs Form
19 to the protestant.


                                   Sincerely,



                                   John Durant, Director
                                   Commercial Rulings Division