HQ 546097: Application for Further Review of Protest Number 2904-95-100146; price paid or payable; 19 U.S.C.1401a(b)(1)

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 546097
                          March 7, 1996

RR:IT:VA 546097 RSD

CATEGORY: VALUATION

Port Director
United States Customs Service
511 NW Broadway
Portland, Oregon 97209

RE:  Application for Further Review of Protest Number 2904-95-100146; price paid or  payable; 19 U.S.C.1401a(b)(1)

Dear Director:

     This is in response to the memorandum dated August 4, 1995,
from the District Director of the former Columbia-Snake River
District forwarding the application for further review of Protest
Number 2904-95-100146, filed by the importer, Tyco Manufacturing
Corp. (hereinafter Tyco) concerning the appraisement of an
imported toy, the Baby Giggles N Go Doll.  The protest is the
lead protest for other protests that concern the same issue.  It
is our understanding that you have already disposed of the GSP
issue that was raised in the protest.  We regret the delay in
responding.

FACTS:

     The merchandise at issue was imported on September 30, 1993. 
Tyco maintains that the entered value of the doll was incorrect
because the unit price of the doll was miscalculated.  The doll
was entered at a unit price of $13.99212, but Tyco claims that
the correct price is $11.60542.  
     In support of its claim, Tyco has submitted a letter dated
January 31, 1994, from its import supervisor to its Customs
broker, Barthco, which states that there was a reduction in
price.  A document labeled as a "credit note" prepared by Tyco
(Hong Kong) Limited dated November l5, 1993, was attached to the
letter. This document shows the original invoice amount, a
summary of the total revised purchase price, and a revised total
amount to be paid.  There is also an undated summary of revised
invoices of Baby Giggles N Go Doll listing both the original and
the revised invoice amounts.  There is no indication who prepared
this summary. 

ISSUE:

     Whether the merchandise was correctly appraised based on the
price reflected on the invoices submitted at the time of entry?

LAW AND ANALYSIS:

     As you know, 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, which is defined by 402(b)(1) as the "price
actually paid or payable for merchandise when sold for
exportation to the United States," plus certain enumerated
additions specified in 402(b)(1)(A) through (E).  For the
purposes of this decision, we have assumed that transaction value
is the appropriate basis of appraisement.  Section 402(b)(4) of
the TAA provides that any rebate of or other decrease in the
price actually paid or payable effected after merchandise is
imported into the U.S. is to be disregarded in determining
transaction value.  19 U.S.C. 1401a(b)(4)(B).  

     In this instance, we find that the documentation provided
with the protest does not establish that the prices shown on the
invoice presented at entry were incorrectly calculated or that
there was a reduction in the selling price of the merchandise
before it was imported into the United States.  The merchandise
was imported into the United States on September 30, 1993, but
the "adjustment invoice" or "credit note" presented by the
protestant is dated November 15, 1993.  The "adjustment invoice",
dated after entry of the imported merchandise does not discredit
the price shown on the invoice dated before entry of the
merchandise.  No other evidence was presented that the lower
price was agreed to prior to importation or that the lower price
was paid.  Accordingly, the alleged price change was properly
disregarded in appraising the imported merchandise.

HOLDING:

     Based on the facts provided, the merchandise was appraised
correctly.  You are directed to deny the protest.  A copy of this
decision with the Form 19 should be sent to the protestant.  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,



                         Acting Director
                               International Trade Compliance
Division