OT:RR:CTF:VS H248853 GaK
Laura Friend
Hayneedle
9394 W. Dodge Rd. Ste 300
Omaha, NE 68114
RE: Assist; advertisement flyer; assembly instructions
Dear Ms. Friend:
This is in response to your letter dated December 6, 2013, requesting a binding ruling on behalf of Hayneedle whether advertisement flyers and assembly instructions are considered dutiable assists. We also considered your e-mail from January 6, 2014 and examples of the advertisement flyers and assembly instructions that accompanied your letter.
FACTS:
Hayneedle intends to provide advertisement flyers and assembly instructions produced in the U.S. to its foreign manufacturer free of charge. The manufacturer will insert the flyers and the assembly instructions into various packages destined to Hayneedle’s fulfillment center in the United States. You provided black and white examples of the flyers and the assembly instructions on print paper. The flyers promote Hayneedle’s website and the assembly instructions provide the ultimate user instructions on how to assemble its products.
ISSUE:
Whether the advertisement flyers and assembly instructions described above are dutiable assists.
LAW AND ANALYSIS:
Imported merchandise is appraised in accordance with 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 and the preferred method of appraisement is transaction value. Transaction value is the “price actually paid or payable for the merchandise when sold for exportation to the United States” plus amounts for five enumerated statutory additions, including the value apportioned as appropriate, of any assist. 19 U.S.C. 1401a(b)(1)(c). The term “price actually paid or payable” is defined as the “total payment (whether direct or indirect, and 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.” 19 U.S.C. 1401a(b)(4)(A).
The definition of an assist, set forth at 19 U.S.C. 1401a(h)(1), is as follows:
(A) [A]ny of the following if supplied directly or indirectly, and free of charge or at reduced cost, by the buyer of imported merchandise for use in connection with the production or the sale for export to the United States of the merchandise:
(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.
Of the items listed above, only (iv) is possibly applicable as the advertisement flyers and assembly instructions are not incorporated in the imported merchandise or used in the production, but rather are merely included alongside the merchandise in its package. Further, they are produced in the U.S. so that subpart (iv) is not applicable. See also 19 U.S.C. 1401a(h)(1)(B).
HOLDING:
The advertisement flyers and assembly instructions, as described above, are not a dutiable assist.
A copy of this ruling letter should be attached to the entry documents filed at the time the goods are entered. If the documents have been filed without a copy of this ruling, it should be brought to the attention of the CBP officer handling the transaction.
Sincerely,
Monika R. Brenner, Chief
Valuation & Special Programs Branch