All merchandise imported into the United States is subject to appraisement. There are six different methods of appraisement, i.e., valuation, and their order of preference. The preferred method of appraisement is transaction value. Generally, the appraised value of all merchandise imported into the United States is the transaction value of the goods. In the event the merchandise cannot be appraised on the basis of transaction value, the secondary bases are considered.
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 amounts equal to:
Other valuation methods include
The price actually paid or payable for the imported merchandise is the total payment, excluding international freight, insurance, and other C.I.F. charges, that the buyer makes to the seller.
Selling commission means any commission paid to the seller's agent, who is related to or controlled by, or works for or on behalf of, the manufacturer or the seller.
The apportioned value of any assist constitutes part of the transaction value of the imported merchandise. First, the value of the assist is determined; then the value is pro-rated to the imported merchandise.
Royalty or license fees that a buyer must pay, directly or indirectly, as a condition of the sale of the imported merchandise for exportation to the United States will be included in the transaction value. Ultimately whether a royalty or license fee is dutiable will depend on 1) whether the buyer had to pay them as a condition of the sale and b) to whom and under what circumstances they were paid. The dutiability status will have to be decided on a case-by-case basis.
Any proceeds resulting from the subsequent sale, disposal, or use of the imported merchandise that accrue directly or indirectly to the seller are dutiable.