HQ 545994: Application for Further Review of Protest No. 2809-94-101526

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 545994
                           May 11, 1995

VAL-R:C:V 545994 EK

CATEGORY: Valuation

District Director
San Francisco, California

RE: Application for Further Review of Protest No. 2809-94-101526

Dear Sir:

     This is in response to the application for further review of the protest referenced above.  

FACTS:

     The importer entered 2,500 cameras from Taiwan into the United States.  The entered
value was $95,645 which covered 2,000 cameras purchased at a unit price of $36.27 and 500
pieces at a unit price of $46.27.  These prices were agreed to between the parties and the cameras
were appraised pursuant to their transaction value, i.e., the price actually paid or payable for the
merchandise when sold for exportation to the United States.  The cameras were exported on April
12, 1994.  Subsequently, the seller decreased the price of the cameras and issued a credit note to
the buyer for the difference in price.  No explanation has been provided with respect to the reason
for the decrease in price.    

     The protestant requests that the merchandise be appraised pursuant to the amended price.  

ISSUE:

     Whether the merchandise should be appraised pursuant to a price which was decreased
subsequent to the exportation of the merchandise.  

LAW AND ANALYSIS:

     The merchandise was appraised pursuant to transaction value, section 402(b) of the Tariff
Act of 1930, as amended by the Trade Agreements Act of 1979, (TAA).  



                              - 2 -

Transaction value is defined as the "price actually paid or payable when sold for exportation to the
United States".  When the merchandise in this case was sold for 
exportation to the United States, the price had been established.  The appraising officer correctly
based the transaction value on this price.  

     In addition, it is well-established that any rebate, or decrease in price, effected between the
buyer and seller, after the merchandise has been sold for exportation to the United States, is
disregarded.  (Section 402(b)(4)(B) of the TAA).    

HOLDING:

     The appraising officer correctly based the transaction value upon the entered 
value.  You are directed to DENY this protest in full.  In accordance with Section 3A(11)(b) of
the Customs Directive 099 3550-065, dated August 4, 1993, Subject: Revised Protest Directive,
this decision should be mailed b your office to the protestant no later than 60 days from the date
of this letter.  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 the public via the Diskette Subscription Service, Lexis, Freedom of Information Act
and other public access channels.  

                              Sincerely,




                              John Durant, Director
                              Commercial Rulings Division