VAL CO:R:C:V 545304 CRS

Richard M. Belanger, Esq.
Powell, Goldstein, Frazer & Murphy
Sixth Floor
1001 Pennsylvania Avenue, N.W.
Washington, D.C. 2004

RE: Transaction value; customs duties and other Federal taxes; 19 U.S.C.  1401a(b)(3); antidumping duties included in a c.i.f. duty-paid price; HRL 543963 cited

Dear Mr. Belanger:

This is in reply to your letter of April 19, 1993, on behalf of N.V.W. (USA), concerning the deduction of antidumping duties from a c.i.f. duty-paid price. We regret the delay in responding.

FACTS:

The transaction at issue concerns the importation of flat-rolled steel. The steel is manufactured by Hoogovens Groep BV, the Dutch parent company of N.V.W., with the latter acting as a selling agent and the importer of record in sales between Hoogovens and its U.S. customers. Sales are on a c.i.f. duty-paid basis.

On February 4, 1993, the Department of Commerce issued a preliminary determination that imports of flat rolled steel from the Netherlands were, or were likely to be, sold in the U.S. at less than fair value. 58 Fed. Reg. 7113. The notice directed Customs to suspend liquidation of all entries of flat-rolled steel and require a cash deposit or the posting of a bond in an amount equal to the estimated preliminary dumping margin for Hoogovens set forth in the notice.

In consequence of this, you state that c.i.f. duty-paid price for flat-rolled steel charged by Hoogovens to its U.S. customers after the date of the notice would have to take account of the amount of the estimated antidumping duties. Nevertheless, you maintain that this amount should not be included in the appraised value of the imported merchandise.

ISSUE:

The issue presented is whether antidumping duties in a c.i.f. duty-paid price should be included in the transaction value of imported merchandise.

LAW AND ANALYSIS:

Merchandise imported into the United States is appraised in accordance with section 402 of the Tariff Act of 1930, as amended by the Trade Agreements Act of 1979 (TAA; 19 U.S.C.  1401a). The preferred method of appraisement is transaction value, defined as the "price actually paid or payable for imported merchandise when sold for exportation to the United States," plus five statutorily enumerated additions. 19 U.S.C.  1401a(b)(1). For the purposes of this ruling we have assumed that transaction value is the appropriate basis of appraisement.

Section 402(b)(3) of the TAA provides that transaction value does not include, if identified separately from the price actually paid or payable:

(B) 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, such merchandise for which vendors in the United States are ordinarily liable.

19 U.S.C.  1401a(b)(3)(B). Customs duties and other Federal taxes currently payable are also excluded from the appraised value of merchandise calculated under the deductive value method. 19 U.S.C.  1401a(d)(3)(A)(iv). You contend that antidumping duties are encompassed by the term "customs duties" and therefore should be excluded from transaction value pursuant to section 402(b)(3).

In Headquarters Ruling Letter (HRL) 543963 dated September 11, 1987, we stated that countervailing duties would be excluded from transaction value pursuant to section 402(b)(3) provided they were identified separately from the price actually paid or payable. In that case although the amount of the countervailing duty was not separately identified on the commercial invoice, the fact that the consumption entry separately identified the countervailing duty was deemed to be sufficient. See also HRL 544722 dated June 4, 1991; HRL 544596 dated November 23, 1990; and HRL 544552 dated September 20, 1990.

Similarly, it is our position that antidumping duties constitute "customs and other Federal taxes" such that they would not be included in transaction value pursuant to section 402(b)(3), provided the amount of such duties are identified separately from the price actually paid or payable for the imported merchandise. HOLDING:

Antidumping duties forming part of a c.i.f. duty-paid price, provided they are identified separately from the price actually paid or payable, constitute customs duties and other Federal taxes and should not be included in the transaction value of imported merchandise determined under section 402(b) of the TAA.

Sincerely,

John Durant, Director
Commercial Rulings Division