PART 152—CLASSIFICATION AND APPRAISEMENT OF MERCHANDISE Authority: 19 U.S.C. 66, 1401a, 1500, 1502, 1624; Subpart B also issued under 19 U.S.C. 1315; Subpart C also issued under 19 U.S.C. 1503; Section 152.3 also issued under 19 U.S.C. 1499; Section 152.13 also issued under 19 U.S.C. 1202 (General Note 3(f), Harmonized Tariff Schedule of the United States (HTSUS)). Source: T.D. 73-175, 38 FR 17477, July 2, 1973, unless otherwise noted. Editorial Note: Nomenclature changes to part 152 appear by CBP Dec. No. 16-26, 81 FR 93022, Dec. 20, 2016. § 152.0 Scope. This part contains regulations pertaining to the tariff classification and appraisement of imported merchandise. Other applicable provisions are contained elsewhere in this chapter, such as in part 10 for articles conditionally free or subject to a reduced rate of duty, and in part 159 for relief from duties on articles lost, damaged, etc. Subpart A—General Provisions § 152.1 Definitions. The following are general definitions for the purposes of part 152: (a)-(b) [Reserved] (c) Date of exportation. (d) Fair retail value. et seq. [T.D. 73-175, 38 FR 17477, July 2, 1973, as amended by T.D. 87-89, 52 FR 24446, July 1, 1987; T.D. 89-1, 53 FR 51269, Dec. 21, 1988] § 152.2 Notification to importer of increased duties. If the Center director believes that the entered rate or value of any merchandise is too low, or if he finds that the quantity imported exceeds the entered quantity, and the estimated aggregate of the increase in duties on that entry exceeds $15, he shall promptly notify the importer on Customs Form 29, or its electronic equivalent specifying the nature of the difference on the notice. Liquidation shall be made promptly and shall not be withheld for a period of more than 20 days from the date of mailing of such notice unless in the judgment of the Center director there are compelling reasons that would warrant such action. [T.D. 73-175, 38 FR 17477, July 2, 1973, as amended by T.D. 82-224, 47 FR 53728, Nov. 29, 1982; T.D. 93-66, 58 FR 44131, Aug. 19, 1993; CBP Dec. 15-14, 80 FR 61291, Oct. 13, 2015] § 152.3 Merchandise found not to correspond with invoice description. When any merchandise not corresponding with the description given in the invoice is found by the examining officer, duties shall be assessed on the merchandise actually found. If the discrepancy appears conclusively to be the result of a mistake and not of any intent to defraud, no proceedings for forfeiture shall be taken. When the entire shipment does not agree with the invoice and there is no evidence of any intent to defraud, a new entry shall be required and the estimated duty paid on the original entry shall be refunded on liquidation as in the case of a nonimportation. (Sec. 499, 46 Stat. 728, as amended; 19 U.S.C. 1499) Subpart B—Classification § 152.11 Harmonized Tariff Schedule of the United States. Merchandise shall be classified in accordance with the Harmonized Tariff Schedule of the United States (19 U.S.C. 1202) as interpreted by administrative and judicial rulings. [T.D. 73-175, 38 FR 17477, July 2, 1973, as amended by T.D. 89-1, 53 FR 51269, Dec. 21, 1988] § 152.12 Applicable rates of duty. Rates of duty shall be based on the detailed instructions in § 141.69 of this chapter, which provides in general that the rates of duty applicable to merchandise shall be those in effect on the date of entry or withdrawal for consumption, except for certain merchandise covered by an entry for immediate transportation or overcarried and returned to the port of entry. § 152.13 Commingling of merchandise. (a) Notice to importer. (b) Highest rate applicable. (1) The quantity and value of each of the kinds so included can be readily ascertained by the usual method of CBP examination or by one or more of the methods specified in General Note 3(f), Harmonized Tariff Schedule of the United States (HTSUS) (19 U.S.C. 1202), or (2) The conditions specified in General Note 3(f), HTSUS, are satisfied. (c) Time limit. (1) File with the Center director evidence showing performance of the commercial settlement tests specified in General Note 3(f), HTSUS; or (2) Perform the segregation under CBP supervision as specified in General Note 3(f), HTSUS; or (3) File with the Center director documentary proof which will satisfy him that the merchandise is entitled to the lower rate of duty under General Note 3(f), HTSUS. (d) Extension of time limit. [T.D. 73-175, 38 FR 17477, July 2, 1973, as amended by T.D. 89-1, 53 FR 51270, Dec. 21, 1988; T.D. 95-29, 60 FR 18349, Apr. 11, 1995; T.D. 00-81, 65 FR 68887, Nov. 15, 2000; T.D. 02-14, 67 FR 15099, Mar. 29, 2002; CBP Dec. 05-31, 70 FR 53062, Sept. 7, 2005] § 152.16 Judicial changes in classification. The following procedures apply to changes in classification made by decision of either the United States Court of International Trade or the United States Court of Appeals for the Federal Circuit, except to the extent otherwise provided in a ruling published in the Customs Bulletin pursuant to § 177.10(a) of this chapter: (a) Identical merchandise under decision favorable to Government. (b) Similar merchandise under decision favorable to Government. (c) Higher rate. (d) American manufacturer's petition upheld. (e) Other decisions adverse to Government. [T.D. 73-175, 38 FR 17477, July 2, 1973, as amended by T.D. 75-186, 40 FR 31928, July 30, 1975; T.D. 85-90, 50 FR 21430, May 24, 1985; CBP Dec. No. 16-26, 81 FR 93022, Dec. 20, 2016] § 152.17 Changes in classification by Congress or by Presidential Proclamation. When a rate of Customs duty or internal revenue tax imposed upon or by reason of importation is changed by an act of Congress or by a proclamation of the President, the new rate shall be applied in accordance with the detailed instructions in § 141.69 of this chapter, which provides in general that the rates of duty applicable to merchandise shall be those in effect on the date of entry or withdrawal for consumption, except for certain merchandise covered by an entry for immediate transportation or overcarried and returned to the port of entry. Subpart C—Appraisement §§ 152.20-152.22 [Reserved] § 152.23 Merchandise imported from intermediate countries. Merchandise imported from one country, being the growth, production, or manufacture of another country, shall for value purposes (see sections 402, Tariff Act of 1930, as amended; 19 U.S.C. 1401a) be treated as an exportation of the country from which it is immediately imported. However, if it appears by the invoice, bill of lading, or other evidence that the merchandise was destined for the United States at the time of original shipment, it shall be treated as an exportation of the country from which it was originally exported. The term “country” is to be regarded for the purposes of this section as embracing all the possessions of a nation, however widely separated, which are subject to the same supreme executive and legislative authority and control. [T.D. 73-175, 38 FR 17477, July 2, 1973, as amended by T.D. 87-89, 52 FR 24446, July 1, 1987] § 152.24 [Reserved] § 152.25 Conversion of foreign currency. When foreign currency must be converted for purposes of appraisement, the instructions in subpart C of part 159 of this chapter shall be followed. § 152.26 Furnishing value information to importer. The Center director will furnish to importers the latest information as to values in his possession, subject to the following conditions: (a) Before appraisement. (b) Only for merchandise under Center director's jurisdiction. (c) Information by importer. (d) Information not binding. (e) No reply required after entry. [CBP Dec. No. 16-26, 81 FR 93022, Dec. 20, 2016] Subpart D [Reserved] Subpart E—Valuation of Merchandise Source: T.D. 81-7, 46 FR 2600, Jan. 12, 1981, unless otherwise noted. § 152.100 Interpretative notes. The interpretative notes set forth in this subpart have been derived from information contained in the Statement of Administrative Action relating to customs valuation, submitted to and approved by Congress along with the Trade Agreements Act of 1979 (Pub. L. 96-39), and will have the force and effect of regulations issued under this subpart. § 152.101 Basis of appraisement. (a) Effective date. (b) Methods. (1) The transaction value provided for in § 152.103; (2) The transaction value of identical merchandise provided for in § 152.104, if the transaction value cannot be determined, or can be determined but cannot be used because of the limitations provided for in § 152.103(j); (3) The transaction value of similar merchandise provided for in § 152.104, if the transaction value of identical merchandise cannot be determined; (4) The deductive value provided for in § 152.105, if the transaction value of similar merchandise cannot be determined; (5) The computed value provided for in § 152.106, if the deductive value cannot be determined; or (6) The value provided for in § 152.107, if the computed value cannot be determined. (c) Importer's option. (d) Explanation to importer. [T.D. 81-7, 46 FR 2600, Jan. 12, 1981, as amended by T.D. 89-1, 53 FR 51270, Dec. 21, 1988] § 152.102 Definitions. As used in this subpart, the following terms will have the meanings indicated: (a) Assist. (i) Materials, components, parts, and similar items incorporated in the imported merchandise. (ii) Tools, dies, molds, and similar items used in the production of the imported merchandise. (iii) Merchandise consumed in the production of the imported merchandise. (iv) Engineering, development, artwork, design work, and plans and sketches that are undertaken elsewhere than in the United States and are necessary for the production of the imported merchandise. (2) No service or work to which paragraph (a)(1)(iv) of this section applies will be treated as an assist if the service or work: (i) Is performed by an individual domiciled within the United States; (ii) Is performed by that individual while acting as an employee or agent of the buyer of the imported merchandise; and (iii) Is incidental to other engineering, development, artwork, design work, or plans or sketches that are undertaken within the United States. (3) The following apply in determining the value of assists described in paragraph (a)(1)(iv) of this section: (i) The value of an assist that is available in the public domain is the cost of obtaining copies of the assist. (ii) If the production of an assist occurred in the United States and one or more foreign countries, the value of the assist is the value added outside the United States. (iii) If the assist was purchased or leased by the buyer from an unrelated person, the value of the assist is the cost of the purchase or of the lease. (b) Commission. (c) Generally accepted accounting principles. (i) Which economic resources and obligations should be recorded as assets and liabilities; (ii) Which changes in assets and liabilities should be recorded; (iii) How the assets and liabilities and changes in them should be measured; (iv) What information should be disclosed and how it should be disclosed; and (v) Which financial statements should be prepared. (2) The applicability of a particular set of generally accepted accounting principles will depend upon the basis on which the value of the imported merchandise is sought to be established, and the relevant country for the point in contention. (3) Information submitted by an importer, buyer, or producer in regard to the appraisement of merchandise may not be rejected by Customs because of the accounting method by which that information was prepared, if the preparation was in accordance with generally accepted accounting principles. (d) Identical merchandise. (e) Packing costs. (f) Price actually paid or payable. (g) Related persons. (2) Any officer or director of an organization, and that organization. (3) An officer or director of an organization and an officer or director of another organization, if each individual also is an officer or director in the other organization. (4) Partners. (5) Employer and employee. (6) Any person directly or indirectly owning, controlling, or holding with power to vote, five percent or more of the outstanding voting stock or shares of any organization, and that organization. (7) Two or more persons directly or indirectly controlling, controlled by, or under common control with, any person. (h) Same class or kind. (i) Similar merchandise. (j) Sufficient information. (1) Any amount: (i) Added under § 152.103(b) to the price actually paid or payable; (ii) Deducted under § 152.105(d) as profit or general expenses or value from further processing, or (iii) Added under § 152.106(b) as profit or general expenses; or (2) Any difference taken into account under § 152.103(j)(2)(ii); or (3) Any adjustment made under § 152.104(d). (k) Unit price in greatest aggregate quantity. [T.D. 81-7, 46 FR 2600, Jan. 12, 1981, as amended by T.D. 97-82, 62 FR 51771, Oct. 3, 1997] § 152.103 Transaction value. (a) Price actually paid or payable General. Example 1. In a transaction with foreign Company X, a U.S. firm pays Company X $10,000 for a shipment of meat products, packed ready for shipment to the United States. No selling commission, assist, royalty, or license fee is involved. Company X is not related to the U.S. purchaser and imposes no condition or limitation on the buyer. The customs value of the imported meat products is $10,000—the transaction value of the imported merchandise. Example 2. A foreign shipper sold merchandise at $100 per unit to a U.S. importer. Subsequently, the foreign shipper increased its price to $110 per unit. The merchandise was exported after the effective date of the price increase. The invoice price of $100 was the price originally agreed upon and the price the U.S. importer actually paid for the merchandise. How should the merchandise be appraised? Actual transaction value of $100 per unit based on the price actually paid or payable. Example 3. A foreign shipper sells to U.S. wholesalers at one price and to U.S. retailers at a higher price. The shipment undergoing appraisement is a shipment to a U.S. retailer. There are continuing shipments of identical and similar merchandise to U.S. wholesalers. How should the merchandise be appraised? Actual transaction value based on the price actually paid or payable by the retailer. Example 4. Company X in the United States pay $2,000 to Y Toy Factory abroad for a shipment of toys. The $2,000 consists of $1,850 for the toys and $150 for ocean freight and insurance. Y Toy Factory would have charged Company X $2,200 for the toys; however, because Y owed Company X $350, Y charged only $1,850 for the toys. What is the transaction value? The transaction value of the imported merchandise is $2,200, that is, the sum of the $1,850 plus the $350 indirect payment. Because the transaction value excludes C.I.F. charges, the $150 ocean freight and insurance charge is excluded. Example 5. A seller offers merchandise at $100, less a 2% discount for cash. A buyer remits $98 cash, taking advantage of the cash discount. The transaction value is $98, the price actually paid or payable. (2) Indirect payment. (3) Assembled merchandise. Example 1. The importer previously has supplied an unrelated foreign assembler with fabricated components ready for assembly having a value or cost at the assembler's plant of $1.00 per unit. The importer pays the assembler 50¢ per unit for the assembly. The transaction value for the assembled unit is $1.50. Example 2. Same facts as Example 1 above except the U.S. importer furnishes to the foreign assembler a tooling assist consisting of a tool acquired by the importer at $1,000. The transportation expenses to the foreign assembler's plant for the tooling assist equal $100. The transaction value for the assembled unit would be $1.50 per unit plus a pro rata (4) Rebate. (5) Foreign inland freight and other inland charges incident to the international shipment of merchandise Ex-factory sales. (ii) Sales other than ex-factory. (iii) Evidence of sale for export and placement for through shipment. (iv) Erroneous and false information. (b) Additions to price actually paid or payable. (i) The packing costs incurred by the buyer with respect to the imported merchandise; (ii) Any selling commission incurred by the buyer with respect to the imported merchandise; (iii) The value, apportioned as appropriate, of any assist; (iv) Any royalty or license fee related to the imported merchandise that the buyer is required to pay, directly or indirectly, as a condition of the sale of the imported merchandise for exportation to the United States; and (v) The proceeds of any subsequent resale, disposal, or use of the imported merchandise that accrue, directly or indirectly, to the seller. (2) The price actually paid or payable for imported merchandise will be increased by the amounts attributable to the items (and no others) described in paragraphs (b)(1) (i) through (v) of this section to the extent that each amount is not otherwise included within the price actually paid or payable, and is based on sufficient information. If sufficient information is not available, for any reason, with respect to any amount referred to in this section, the transaction value will be treated as one that cannot be determined. (3) Interpretative note. (c) Sufficiency of information. (d) Assist. (1) If the assist consist of materials, components, parts, or similar items incorporated in the imported merchandise, or items consumed in the production of the imported merchandise, acquired by the buyer from an unrelated seller, the value of the assist is the cost of its acquisition. If the assist were produced by the buyer or a person related to the buyer, its value would be the cost of its production. In either case, the value of the assist would include transportation costs to the place of production. (2) If the assist consists of tools, dies, molds, or similar items used in the production of the imported merchandise, acquired by the buyer from an unrelated seller,the value of the assist is the cost of its acquisition. If the assist were produced by the buyer or a person related to the buyer, its value would be cost of its production. If the assist has been used previously by the buyer, regardless of whether it had been acquired or produced by him, the original cost of acquisition or production would be adjusted downward to reflect its use before its value could be determined. If the assist were leased by the buyer from an unrelated seller, the value of the assist would be the cost of the lease. In either case, the value of the assist would include transportation costs to the place of production. Repairs or modifications to an assist may increase its value. Example 1. A U.S. importer supplied detailed designs to the foreign producer. These designs were necessary to manufacture the merchandise. The U.S. importer bought the designs from an engineering company in the U.S. for submission to his foreign supplier. Should the appraised value of the merchandise include the value of the assist? No, design work undertaken in the U.S. may not be added to the price actually paid or payable. Example 2. A U.S. importer supplied molds free of charge to the foreign shipper. The molds were necessary to manufacture merchandise for the U.S. importer. The U.S. importer had some of the molds manufactured by a U.S. company and others manufactured in a third country. Should the appraised value of the merchandise include the value of the molds? Yes. It is an addition required to be made to transaction value. (e) Apportionment. (2) Interpretative note. (f) Royalties or license fees. Example. A foreign producer sold merchandise to an unrelated U.S. importer. The U.S. importer pays a royalty to an unrelated third party for the right to manufacture and sell a product made in part from the imported merchandise. The royalty is based on the selling price of the further-manufactured product in the U.S. Is the license fee part of the appraised value? No. The license fee is not a condition of the sale of the imported merchandise for export to the U.S. (g) Proceeds of subsequent resale. Example. A buyer contracts to import a new product. Not knowing whether the product ultimately will sell in the United States, the buyer agrees to pay the seller initially $1 per unit with an additional $1 per unit to be paid upon the sale of each unit in the United States. Assuming the resale price in the United States can be determined in a reasonable period of time, the transaction value of each unit would be $2. Otherwise, the transaction value could not be determined for want of sufficient information. (h) Right to reproduce. Example. The importer purchases a painting. By purchasing the painting, the owner possesses the right to resell, lease, or otherwise place it on display. Absent an agreement to the contrary, he does not possess the right to reproduce copies of the painting. Fees paid for the right to reproduce the painting would not be dutiable. (i) Exclusions from transaction value. (1) Any reasonable cost or charge that is incurred for— (i) The construction, erection, assembly, or maintenance of, or the technical assistance provided with respect to, the merchandise after its importation into the United States; or (ii) The transportation of the merchandise after its importation. (2) The customs duties and other Federal taxes currently payable on the imported merchandise by reason of its importation, and any Federal excise tax on, or measured by the value of, the merchandise for which vendors in the United States ordinarily are liable. Example. A foreign shipper sells a piece of equipment to a U.S. buyer. The total contract price for the equipment includes technical assistance in the U.S. The equipment cannot be purchased without the technical assistance, but the contract provides a breakdown of costs. Should the appraised value include the technical assistance? No, transaction value does not include any reasonable costs for construction, erection, assembly, maintenance of, or technical assistance, for the imported merchandise after its importation into the U.S., the cost of which can be accurately identified as being separate from the price actually paid or payable for the merchandise to which they relate. (j) Limitations on use of transaction value In general. (i) There are no restrictions on the disposition or use of the imported merchandise by the buyer, other than restrictions which are imposed or required by law, limit the geographical area in which the merchandise may be resold, or do not affect substantially the value of the merchandise; (ii) The sale of, or the price actually paid or payable for, the imported merchandise is not subject to any condition or consideration for which a value cannot be determined; (iii) No part of the proceeds of any subsequent resale, disposal, or use of the imported merchandise by the buyer will accrue directly or indirectly to the seller, unless an appropriate adjustment can be made under paragraph (b)(1)(v) of this section; and (iv) The buyer and seller are not related, or the buyer and seller are related but the transaction value is acceptable. (2) Related person transactions. (A) The transaction value of identical merchandise; or of similar merchandise, in sales to unrelated buyers in the United States; or (B) The deductive value or computed value of identical merchandise, or of similar merchandise; and (C) Each value referred to in paragraph (j)(2)(i) (A) and (B) of this section that is used for comparison relates to merchandise that was exported to the United States at or about the same time as the imported merchandise. (ii) In applying the values used for comparison, differences with respect to the sales involved will be taken into account if based on sufficient information supplied by the buyer or otherwise available to Customs and if the differences relate to: (A) Commercial levels; (B) Quantity levels; (C) The costs, commissions, values, fees, and proceeds described in paragraph (b) of this section; and (D) The costs incurred by the seller in sales in which the seller and the buyer are not related that are not incurred by the seller in sales in which the seller and the buyer are related. (k) Restrictions and conditions on sale. (i) Interpretative note. (2) The transaction value will not be accepted as the appraised value if the sale of, or the price actually paid or payable for, the merchandise is subject to a condition or consideration for which a value cannot be determined. (i) Interpretative note 1. (ii) Interpretative note 2. (iii) Interpretative note 3. (l) Related buyer and seller Validation of transaction. (i) Interpretative note 1. (ii) Interpretative note 2. (iii) Interpretative note 3. Example. A foreign seller sells merchandise to a related U.S. importer. The foreign seller does not sell identical merchandise or similar merchandise to any unrelated parties. The transaction between the foreign seller and the U.S. importer is determined by Customs to be unaffected by the relationship. How should the merchandise be appraised? Transaction value based on the price actually paid or payable. A transaction value between a related buyer and seller is acceptable if the relationship did not affect the price actually paid or payable. This is so even if similar merchandise is being sold at a higher price, which includes a higher percentage for profit and general expenses. (2) Test values. (A) The nature of the imported merchandise and the industry, (B) The season in which the merchandise is imported, (C) Whether the difference in value is commercially significant, and (D) Whether the difference in value is attributable to internal transport costs in the country of exportation. (ii) Because these factors may vary, Customs will not be able to apply a uniform standard, such as a fixed percentage, in each case. A small difference in value in a case involving one type of imported merchandise may be unacceptable, although a large difference in a case involving another type may be acceptable, in determining if the transaction value closely approximates any of the test values. Customs will be consistent in determining if one value “closely approximates” another value. The same approach will be taken if Customs considers a transaction value that is higher than any of the enumerated test values as will be taken if the transaction value is lower than any of the test values. Example. In applying any of the test values, if the transaction value in the sale under consideration is rejected because 95 does not closely approximate 100, then a transaction value for the sale of the same merchandise at 105 occurring at or about the same time likewise would have to be rejected. Similarly, if 103 were considered to closely approximate 100, a transaction value of 97 likewise would closely approximate 100. (iii) If one of the test values provided in § 152.103(j)(2)(i) has been found to be appropriate, the Center director shall not seek to determine if the relationship between the buyer and seller influenced the price. If the Center director already has sufficient information to be satisfied, without further detailed inquiries, that one of the test values is appropriate, he shall not require the importer to demonstrate that the test value is appropriate. (m) Rejection of transaction value. [T.D. 81-7, 46 FR 2600, Jan. 12, 1981, as amended by T.D. 84-235, 49 FR 46888, Nov. 29, 1984; CBP Dec. No. 168-26, 81 FR 93023, Dec. 20, 2016] § 152.104 Transaction value of identical merchandise and similar merchandise. (a) General. (1) With respect to the merchandise being appraised, either identical merchandise, or similar merchandise; and (2) Exported to the United States at or about the time that the merchandise being appraised is exported to the United States. (b) Identical merchandise. (c) Similar merchandise. (d) Commercial level and quantity. (e) Adjustments. (2) Interpretative note. bona fide § 152.105 Deductive value. (a) Merchandise concerned. (b) Merchandise of the same class or kind. (c) Prices. (1) If the merchandise concerned is sold in the condition as imported at or about the date of importation of the merchandise being appraised, the price is the unit price at which the merchandise concerned is sold in the greatest aggregate quantity at or about such date. (2) If the merchandise concerned is sold in the condition as imported but not sold at or about the date of importation of the merchandise being appraised, the price is the unit price at which the merchandise concerned is sold in the greatest aggregate quantity after the date of importation of the merchandise being appraised but before the close of the 90th day after the date of such importation. (3) If the merchandise concerned was not sold in the condition as imported and not sold before the close of the 90th day after the date of importation of the merchandise being appraised, the price is the unit price at which the merchandise being appraised, after further processing, is sold in the greatest aggregate quantity before the 180th day after the date of such importation. This provision will apply to appraisement of merchandise only if the importer so elects at the time of filing the entry summary. (d) Deductions from price. (1) Any commission usually paid or agreed to be paid, or the addition usually made for profit and general expenses, in connection with sales in the United States of imported merchandise that is of the same class or kind, regardless of the country of exportation, as the merchandise concerned; (2) The actual costs and associated costs of transportation and insurance incurred with respect to international shipments of the merchandise concerned from the country of exportation to the United States; (3) The usual costs and associated costs of transportation and insurance incurred with respect to shipments of the merchandise concerned from the place of importation to the place of delivery in the United States, if those costs are not included as a general expense under paragraph (d)(1) of this section; (4) The customs duties and other Federal taxes currently payable on the merchandise concerned by reason of its importation, and any Federal excise tax on, or measured by the value of, the merchandise for which vendors in the United States ordinarily are liable; and (5) But only in the case of price determined under paragraph (c)(3) of this section, the value added by the processing of the merchandise after importation to the extent that the value is based on sufficient information relating to the cost of that processing. (e) Profit and general expenses; special rules. (2) In determining deductions for commissions and usual profit and general expenses, sales in the United States of the narrowest group or range of imported merchandise of the same class or kind, including the merchandise being appraised, for which sufficient information can be provided, will be examined. (f) Packing costs. (g) Assists. (h) Unit price in greatest aggregate quantity. (1) Interpretative note 1. Sale quantity Unit price Number of sales Total quantity sold at each price 1-10 units $100 10 sales of 5 units 65 5 sales of 3 units 11-25 units 95 5 sales of 11 units 55 Over 25 units 90 1 sale of 30 units 80 1 sale of 50 units The greatest number of units sold at a price is 80; therefore, the unit price in the greatest aggregate quantity is $90. (2) Interpretative note 2. (3) Interpretative note 3. ( i Sale quantity Unit price 40 units $100 30 units 90 15 units 100 50 units 95 25 units 105 35 units 90 5 units 100 ( ii Total quantity sold Unit price 65 $90 50 95 60 100 25 105 In this example, the greatest number of units sold at a particular price is 65; therefore, the unit price in the greatest aggregate quantity is $90. (i) Further processing Quantified data. (2) Loss of identity. Example. A foreign shipper sells merchandise to a related U.S. importer. The foreign shipper does not sell to any unrelated person. The transaction between the foreign shipper and the U.S. importer is determined to have been affected by the relationship. There is no identical or similar merchandise from the same country of production. The U.S. importer further processes the product and sells the finished product to an unrelated buyer in the U.S. within 180 days of the date of importation. No assists from the unrelated U.S. buyer are involved, and the type of processing involved can be accurately costed. How should the merchandise be appraised? The merchandise should be appraised under deductive value with allowances for profit and general expenses, freight and insurance, duties and taxes, and the cost of processing. [T.D. 81-7, 46 FR 2600, Jan. 12, 1981, as amended by T.D. 85-123, 50 FR 29956, July 23, 1985] § 152.106 Computed value. (a) Elements. (1) The cost or value of the materials and the fabrication and other processing of any kind employed in the production of the imported merchandise; (2) An amount for profit and general expenses equal to that usually reflected in sales of merchandise of the same class or kind as the imported merchandise that are made by the producers in the country of exportation for export to the United States; (3) Any assist, if its value is not included under paragraph (a) (1) or (2) of this section; and (4) The packing costs. (b) Special rules. (2) The amount for profit and general expenses under paragraph (a)(2) of this section will be based upon the producer's profit and general expenses, unless the producer's profit and general expenses are inconsistent with those usually reflected in sales of merchandise of the same class or kind as the imported merchandise that are made by producers in the country of exportation for export to the United States. In that case, the amount under paragraph (a)(2) of this section will be based on the usual profit and general expenses of such producers in those sales, as determined from “sufficient information”. See § 152.102(j). (c) Profit and general expenses. (1) Interpretative note 1. (2) Interpretative note 2. (d) Assists and packing costs. (e) Merchandise of same class or kind. Example. A foreign shipper sells merchandise to a related U.S. importer. The foreign shipper does not sell to any unrelated persons. The transaction between the foreign shipper and the U.S. importer is determined to have been affected by the relationship. There is no identical or similar merchandise from the same country of production. The U.S. importer further processes the product and sells the finished product to an unrelated buyer in the U.S. within 180 days of the date of importation. No assists from the unrelated U.S. buyer are involved, and the type of processing involved can be accurately costed. The U.S. importer has requested that the shipment be appraised under computed value. The profit and general expenses figure for the same class or kind of merchandise in the country of exportation for export to the U.S. is known. How should the merchandise be appraised? The merchandise should be appraised under computed value, using the company's profit and general expenses if not inconsistent with those usually reflected in sales of merchandise of the same class or kind. (f) Availability of information. (i) The importer is unable to provide required computed value information within a reasonable time, and/or (ii) The foreign producer refuses to provide, or is legally prevented from providing, that information. (2) If information other than that supplied by or on behalf of the producer is used to determine computed value, the Center director shall inform the importer, upon written request, of: (i) The source of the information, (ii) The data used, and (iii) The calculation based upon the specified data, if not contrary to domestic law regarding disclosure of information. See also § 152.101(d). § 152.107 Value if other values cannot be determined or used. (a) Reasonable adjustments. (b) Identical merchandise or similar merchandise. (c) Deductive value. § 152.108 Unacceptable bases of appraisement. For the purposes of this subpart, imported merchandise may not be appraised on the basis of: (a) The selling price in the United States of merchandise produced in the United States; (b) A system that provides for the appraisement of imported merchandise at the higher of two alternative values; (c) The price of merchandise in the domestic market of the country of exportation; (d) A cost of production, other than a value determined under § 152.106 for merchandise that is identical merchandise, or similar merchandise, to the merchandise being appraised; (e) The price of merchandise for export to a country other than the United States; (f) Minimum values for appraisement; (g) Arbitrary or fictitious values. [T.D. 81-7, 46 FR 2600, Jan. 12, 1981, as amended by T.D. 85-123, 50 FR 29956, July 23, 1985]