HQ 554993: Assembly of Motors and Equipment Provided by the Importer

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 554993

                                    May 19, 1988

          CLA-2 CO:R:CV:V  554993 EK

          CATEGORY:  Valuation

          RE:  Assembly of Motors and
               Equipment Provided by the Importer

          Dear --------:

                This is in response to your letter of April 11, 1988,
          regarding a prospective ruling request on behalf of your client.

                You state that your client will be assembling small motors
          in its production facility in Mexico.  You state that transaction
          value, pursuant to section 402(b) of the Tariff Act of 1930, as
          amended by the Trade Agreements Act of 1979 (19 U.S.C. 1401a(b);
          TAA), will be applicable in appraising the merchandise.

                Transaction value is defined in section 402(b) of the TAA
          as the "price actually paid or payable" for imported merchandise
          when sold for exportation to the United States, plus amounts
          equal to the value of any assist.  In order for transaction value
          to be applicable, a sale for exportation to the United States
          must occur.  In addition, section 402(b)(2)(B) of the TAA governs
          the applicability of transaction value in a related party
          situation.

                You should also be aware of Section 152.103(a)(3), Customs
          Regulations [19 CFR 152.103(a)(3)], which states the following:

                    The price actually paid or payable may represent
                    an amount for the assembly of imported merchandise
                    in which the seller has no interest other than as
                    the assembler.  The price actually paid or payable
                    in that case will be calculated by the addition of
                    the value of the components and required
                    adjustments to form the basis for the transaction
                    value.






















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                You further inquire as to the dutiability of a fork lift
          truck, work tables and benches which will be provided by your
          client to the Mexican assembly plant free of charge.

                From the information provided in your letter, it does not
          appear as if the fork lift truck, work tables and benches are
          assists within the meaning of section 402(h)(1)(A) of the TAA and
          therefore, will not be added to the "price actually paid or
          payable."

                You state that your client pays a U.S. Customs brokerage
          firm $5.00 to complete and submit Shipper's Export Declaration
          form per shipment to Mexico.  The shipment may contain duty
          exempt components, American packaging materials, foreign
          materials and assists.

                Your letter does not provide enough information to
          conclusively determine the nature of the fee; however, the
          following may be helpful to you.

                In cases where the value of an assist is to be added to the
          "price actually paid or payable," such value will include
          transportation costs to the place of production.  See, Section
          152.103(d), Customs Regulations [19 CFR 152.103(d)].  Therefore,
          with respect to shipments which include dutiable assists, the fee
          paid will be included in the transaction value of the final
          imported product.

                We have enclosed information regarding Customs valuation
          which may be of some use to you.

                                        Sincerely,




                                        John Durant, Director
                                        Commercial Rulings Division