[Code of Federal Regulations]
[Title 19, Volume 2]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 19CFR152.104]

[Page 210-211]
 
                        TITLE 19--CUSTOMS DUTIES
 
  CHAPTER I--UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY
 
PART 152--CLASSIFICATION AND APPRAISEMENT OF MERCHANDISE--Table of Contents
 
                   Subpart E--Valuation of Merchandise
 
Sec. 152.104  Transaction value of identical merchandise and similar merchandise.

    (a) General. The transaction value of identical merchandise, or of 
similar merchandise, is the transaction value (acceptable as the 
appraised value under Sec. 152.103 but adjusted under paragraph (e) of 
this section) of imported merchandise that is--
    (1) With respect to the merchandise being appraised, either 
identical merchandise, or similar merchandise; and
    (2) Exported to the United States at or about the time that the 
merchandise being appraised is exported to the United States.

[[Page 211]]

    (b) Identical merchandise. Minor differences in appearance will not 
preclude otherwise conforming merchandise from being considered 
``identical''. See Sec. 152.102(d).
    (c) Similar merchandise. The quality of the merchandise, its 
reputation, and the existence of a trademark will be factors considered 
to determine whether merchandise is ``similar''. See Sec. 152.102(i).
    (d) Commercial level and quantity. Transaction values determined 
under this section will be based on sales of identical merchandise, or 
similar merchandise, at the same commercial level and in substantially 
the same quantity as the sales of the merchandise being appraised. If no 
such sale is found, sales of identical merchandise, or similar 
merchandise, at either a different commercial level or in different 
quantities, or both, will be used, but adjusted to take account of that 
difference. Any adjustment made under this section will be based on 
``sufficient information''. See Sec. 152.102(j). If in applying this 
section to any merchandise, two or more transaction values for identical 
merchandise, or for similar merchandise, are determined, the merchandise 
will be appraised on the basis of the lower or lowest of those values.
    (e) Adjustments. (1) Adjustments for identical merchandise, or 
similar merchandise, because of different commercial levels or 
quantities, or both, whether leading to an increase or decrease in the 
value, will be made only on the basis of sufficient information; e.g., 
valid price lists containing prices referring to different levels or 
quantities.
    (2) Interpretative note. If the imported merchandise being valued 
consists of a shipment of 10 units and the only identical imported 
merchandise for which a transaction value exists involved a sale of 500 
units, and it is recognized that the seller grants quantity discounts, 
the required adjustment may be accomplished by resorting to the seller's 
price list and using that price applicable to a sale of 10 units. This 
does not require that a sale had to have been made in quantities of 10 
as long as the price list has been established as being bona fide 
through sales at other quantities. In the absence of such an objective 
measure, however, the determination of a customs value under the 
provisions for transaction value of identical or similar merchandise is 
not appropriate.