Question 19
Domain 3: Customs ValuationIf the transaction value of similar merchandise cannot be determined, which of the following choices is an acceptable basis of appraisement for imported merchandise?
Correct answer: D
Explanation
When transaction value of identical or similar merchandise cannot be used, the valuation hierarchy moves to the next method. The source lists “Deductive value method” as an alternative valuation method after “Transaction value of identical merchandise” and “Transaction value of similar merchandise.”
Why each option is right or wrong
A. The price of merchandise for export to a country other than the United States
Export price to a third country is not a listed alternative valuation method.
B. The price of merchandise in the domestic market of the country of exportation
Domestic market price in the export country is not the customs valuation basis here.
C. The minimum value
Minimum value is not part of the customs valuation hierarchy.
D. The deductive value
Under the customs valuation hierarchy in 19 U.S.C. 1401a(a)(1), if transaction value cannot be based on identical or similar merchandise, CBP moves to the next statutory method rather than stopping. The next acceptable basis is deductive value under 19 U.S.C. 1401a(d), which is derived from the unit price at which the imported merchandise or identical/similar merchandise is sold in the U.S. in the greatest aggregate quantity, less the statutory deductions.