VAL CO:R:C:V 545574 LPF
District Director
U.S. Customs Service
P.O. Box 025280
6601 NW 25th Street
Miami, FL 33102-5280
RE: Application for Further Review of Protest No. 5201-93-102081;
Price Actually Paid or Payable; Applicable Exchange Rate for Currency Conversion; 19 USC 1401a(b); 19 CFR 152 and 159
Dear Madam:
This is a decision on an application for further review of a
protest filed December 3, 1993, against your decision concerning
the appraisement of a motor yacht. The entry was liquidated on
September 17, 1993. We regret the delay in responding.
FACTS:
On January 22, 1993, a motor yacht, known as the Gallant
Lady, was imported by Southeast Toyota Distributors, Inc. at
Miami, FL. The file contains an agreement, dated March 20, 1990,
between Southeast Toyota Distributors, Inc. ("importer"), of
Deerfield Beach, FL, and De Vries Scheepsbouw B.V. ("seller"), of
the Netherlands, concerning the manufacture and sale of the motor
yacht. The agreement provides a contract price, in Dutch
guilders, to be paid to the seller by the importer for the yacht
in seven installments corresponding to different stages of the
yacht's construction.
The file also includes invoices from the seller to the
importer, as well as confirmation of the importer's payments,
concerning most of the seven installments made between March 1990
and July 1992. A final invoice, dated August 6, 1992, reflects
the charge for the full contract price, in Dutch guilders, as
provided in the original agreement. An attached payment schedule
reflects a value of the merchandise, in U.S. dollars, based on
the exchange rate applicable on the date of payment of each
installment. It is our understanding that the date of
exportation of the yacht was July 24, 1992.
-2-
It appears that both parties are in agreement as to the
price actually paid or payable for the yacht in Dutch guilders.
However, the protestant submits that the value of the yacht, in
U.S. dollars, is properly based on the exchange rate applicable
on the date of payment of each installment. You appraised the
yacht based on the exchange rate applicable on the date of
exportation.
ISSUE:
Whether the transaction value of the yacht, in U.S. dollars,
is properly based on the exchange rate applicable on the date of
payment of each installment or the exchange rate applicable on
the date of exportation.
LAW AND ANALYSIS:
As you are aware, the preferred method of appraisement is
transaction value pursuant to section 402(b) of the Tariff Act of
1930, as amended by the Trade Agreements Act of 1979 (TAA),
codified at 19 U.S.C. 1401a. Section 402(b)(1) of the TAA
provides, in pertinent part, that the transaction value of
imported merchandise is the "price actually paid or payable for
the merchandise when sold for exportation to the United States"
plus enumerated statutory additions.
Section 152.1(c), Customs Regulations (19 CFR 152.1(c))
provides that the date of exportation or time of exportation
referred to in section 402 of the TAA, means the actual date the
merchandise finally leaves the country of exportation for the
United States. Moreover, section 159.32, Customs Regulations (19
CFR 159.32) provides that the date of exportation for currency
conversion shall be fixed in accordance with section 152.1(c).
Based on the information provided, the merchandise at issue
was exported on July 24, 1992, from the Netherlands to the U.S.
Accordingly, it follows in accordance with the above referenced
regulations, that the currency conversion from Dutch guilders to
U.S. dollars is appropriately based on the exchange rate
applicable on July 24, 1992.
HOLDING:
The transaction value of the yacht, in U.S. dollars, is
properly based on the exchange rate applicable on the date of its
exportation from the Netherlands to the U.S.
You are directed to deny this protest. A copy of this
decision with the Form 19 should be sent to the protestant.
-3-
In accordance with Section 3A(11)(b) of Customs Directive
099 3550-065, dated August 4, 1993, Subject: Revised Protest
Directive, this decision should be mailed by your office to the
protestant no later than 60 days from the date of this letter.
Any reliquidation of the entry in accordance with the decision
must be accomplished prior to mailing of the decision. Sixty
days from the date of the decision, the Office of Regulations and
Rulings will take steps to make the decision available to Customs
personnel via the Customs Rulings Module in ACS, and to the
public via the Diskette Subscription Service, the Freedom of
Information Act and other public access channels.
Sincerely,
John Durant, Director
Commercial Rulings Division