deductive value

(U.S. Customs) In valuation of merchandise for customs purposes, deductive value is the resale price of imported merchandise in the United States with deductions for certain items. Generally, the deductive value is calculated by starting with a unit price and making certain additions to and deductions from that price.
Unit Price: One of three prices constitutes the unit price in deductive value. The price used depends on when and in what condition the merchandise concerned is sold in the United States.
(1) Time and Condition: The merchandise is sold in the condition as imported at or about the date of importation of the merchandise being appraised. Price: The price used is the unit price at which the greatest aggregate quantity of the merchandise concerned is sold at or about the date of importation.
(2) Time and Condition: The merchandise concerned is sold in the condition as imported but not sold at or about the date of importation of the merchandise being appraised. Price: The price used is the unit price at which the greatest aggregate quantity of the merchandise concerned is sold after the date of importation of the merchandise being appraised, but before the close of the 90th day after the date of importation.
(3) Time and Condition: The merchandise concerned is not sold in the condition as imported and not sold before the close of the 90th day after the date of importation of the merchandise being appraised. Price: The price used is the unit price at which the greatest aggregate quantity of the merchandise being appraised, after further processing, is sold before the 180th day after the date of the importation.
The third price is also known as the “further processing price” or “superdeductive.”
Addition s : Packing costs for the merchandise concerned are added to the price used for deductive value, provided these costs have not otherwise been included. These costs are added regardless of whether the importer or the buyer incurs the cost.
Deduction s : Certain items are not part of the deductive value and must be deducted from the unit price. These items include:
(1) Commissions or profits and general expense,
(2) Transportation and insurance costs,
(3) Customs duties and federal taxes,
(4) Value of further processing.
If an assist is involved in a sale, that sale cannot be used in determining deductive value.
See valuation; transaction value; identical merchandise; similar merchandise; computed value.

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