[Code of Federal Regulations]

[Title 19, Volume 2]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 19CFR146.65]



[Page 110-111]

 

                        TITLE 19--CUSTOMS DUTIES

 

   CHAPTER I--BUREAU OF CUSTOMS AND BORDER PROTECTION, DEPARTMENT OF 

        HOMELAND SECURITY; DEPARTMENT OF THE TREASURY (CONTINUED)

 

PART 146_FOREIGN TRADE ZONES--Table of Contents

 

              Subpart F_Transfer of Merchandise From a Zone

 

Sec.  146.65  Classification, valuation, and liquidation.



    (a) Classification--(1) Privileged foreign merchandise. Privileged 

foreign merchandise provided for in this section will be subject to 

tariff classification according to its character, condition and 

quantity, at the rate of duty and tax in force on the date of filing, in 

complete and proper form, the application for privileged status. 

Classification of merchandise subject to a tariff-rate import quota will 

be made only at the higher non-quota duty rate in effect on the date 

privileged foreign status was granted. Notwithstanding the grant of 

privileged status, Customs may correct any misclassification of any such 

entered merchandise when it posts the bulletin notice of liquidation 

under Sec.  159.9 of this chapter.

    (2) Nonprivileged foreign merchandise. Nonprivileged foreign 

merchandise provided for in this section will be subject to tariff 

classification in accordance with its character, condition and quantity 

as constructively transferred to Customs territory at the time the entry 

or entry summary is filed with Customs.

    (b) Valuation--(1) Total zone value. The total zone value of 

merchandise



[[Page 111]]



provided for in this section will be determined in accordance with the 

principles of valuation contained in sections 402 and 500 of the Tariff 

Act of 1930, as amended by the Trade Agreements Act of 1979 (19 U.S.C. 

1401a, 1500). The total zone value shall be that price actually paid or 

payable to the zone seller in the transaction that caused the 

merchandise to be transferred from the zone. Where there is no price 

paid or payable, the total zone value shall be the cost of all materials 

and zone processing costs related to the merchandise transferred from 

the zone.

    (2) Dutiable value. The dutiable value of merchandise provided for 

in this section shall be the price actually paid or payable for the 

merchandise in the transaction that caused the merchandise to be 

admitted into the zone, plus the statutory additions contained in 

section 402(b)(1) of the Tariff Act of 1930, as amended by the Trade 

Agreements Act of 1979 (19 U.S.C. 1401a(b)(1)), less, if included, 

international shipment and insurance costs and U.S. inland freight 

costs. If there is no such price actually paid or payable, or no 

reasonable representation of that cost or of the statutory additions, 

the dutiable value may be determined by excluding from the zone value 

any included zone costs of processing or fabrication, general expenses 

and profit and the international shipment and insurance costs and U.S. 

inland freight costs related to the merchandise transferred from the 

zone. The dutiable value of recoverable waste or scrap provided for in 

Sec.  146.42(b) will be the price actually paid or payable to the zone 

seller in the transaction that caused the recoverable waste or scrap to 

be transferred from the zone.

    (3) Allowance. An allowance in the dutiable value of zone 

merchandise may be made by the port director in accordance with the 

provisions of subparts B and C of part 158 of this chapter, for damage, 

deterioration, or casualty while the merchandise is in the zone.

    (c) Liquidation; extension to update cost data. When the declared 

value or values of the merchandise are based on an estimate or 

estimates, the person making entry may request an extension of 

liquidation pending the presentation of updated or actual cost data. A 

request for an extension may be granted at the discretion of the port 

director.



[T.D. 86-16, 51 FR 5049, Feb. 11, 1986, as amended by T.D. 91-79, 56 FR 

46372, Sept. 12, 1991; T.D. 95-35, 60 FR 20632, Apr. 27, 1995]