[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: 19CFR159.36]



[Page 233-234]

 

                        TITLE 19--CUSTOMS DUTIES

 

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

        HOMELAND SECURITY; DEPARTMENT OF THE TREASURY (CONTINUED)

 

PART 159_LIQUIDATION OF DUTIES--Table of Contents

 

                Subpart C_Conversion of Foreign Currency

 

Sec.  159.36  Multiple certified rates.



    The following procedures shall apply when the Federal Reserve Bank 

of New York certifies two or more rates of exchange (e.g., official and 

free) for a foreign currency:

    (a) Rates to be published. When the Federal Reserve Bank of New York 

certifies two or more rates of exchange for the currency of any country, 

those rates will be published in the Customs Bulletin.

    (b) Laws of country of exportation followed. When multiple rates 

have been certified for a foreign currency, the rate to be used for 

Customs purposes shall be the type of certified rate which the port 

director is satisfied, from information in his own files, information 

obtained and presented to him by the importer, or information obtained 

from other sources, is uniformly applicable under the laws and 

regulations of the country of exportation to the particular class of 

merchandise on the date of exportation. In cases where two or more types 

of certified rates are uniformly applicable on a percentage bases, each 

type of certified rate shall be used for the percentage of value to 

which it is applicable. The percentages used shall be those which 

reflect realistically the percentage for which each type of rate is 

uniformly applicable under the laws and regulations of the country of 

exportation on the date of exportation.

    (c) Procedure when multiple certified rates not uniformly 

applicable. If the port director has credible information that a type of 

rate or combination of types of rates which would otherwise be 

applicable under paragraph (b) of this section were not required or 

permitted, as the case may be, under the laws and regulations of the 

country of exportation to be used uniformly during any period in 

connection with the payment for all merchandise of the class involved, 

he shall immediately submit a detailed report to the Commissioner of 

Customs, and shall suspend appraisement and liquidation as to all 

merchandise of the class involved exported to the United States during 

the period involved, until instructions are received from the 

Commissioner of Customs.

    (d) Rate for merchandise different from rate for costs. If the port 

director has credible information that a type of rate or combination of 

types of rates not applicable to payment for the merchandise was 

required or permitted in payment of costs, charges, or expenses, the 

currency conversions for the exchange covering payment for the 

merchandise and for the exchange covering such costs, charges, or 

expenses shall



[[Page 234]]



be calculated separately. In deducting nondutiable costs, charges, or 

expenses, the foreign exchange shall be at the rate or rates actually 

used in payment of such costs, charges, or expenses, whether or not 

certified in accordance with Sec.  159.34 or Sec.  159.35. If the costs, 

charges or expenses are dutiable, they shall be calculated according to 

the rules set forth in this subpart. In the event that any type of rate 

uniformly applicable to payment of such dutiable costs, charges, or 

expenses for merchandise of the class involved was a type of rate not 

certified in accordance with Sec.  159.34 or Sec.  159.35, the port 

director shall immediately submit a detailed report to the Commissioner 

of Customs, and shall suspend appraisement and liquidation as to all 

merchandise of the class involved exported to the United States during 

the period involved, until instructions are received from the 

Commissioner.