19 CFR 10.596 - Value of materials.

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There are 2 Updates appearing in the Federal Register for 19 CFR 10. View below or at eCFR (GPOAccess)
§ 10.596 Value of materials.
(a) Calculating the value of materials. Except as provided in § 10.603, for purposes of calculating the regional value content of a good under General Note 29(n), HTSUS, and for purposes of applying the de minimis (see§ 10.598 of this subpart) provisions of General Note 29(n), HTSUS, the value of a material is:
(1) In the case of a material imported by the producer of the good, the adjusted value of the material;
(2) In the case of a material acquired by the producer in the territory where the good is produced, the value, determined in accordance with Articles 1 through 8, Article 15, and the corresponding interpretative notes of the Customs Valuation Agreement, of the material with reasonable modifications to the provisions of the Customs Valuation Agreement as may be required due to the absence of an importation by the producer (including, but not limited to, treating a domestic purchase by the producer as if it were a sale for export to the country of importation); or
(3) In the case of a self-produced material, the sum of:
(i) All expenses incurred in the production of the material, including general expenses; and
(ii) An amount for profit equivalent to the profit added in the normal course of trade.
(b) Examples. The following examples illustrate application of the principles set forth in paragraph (a)(2) of this section:
Example 1.
A producer in El Salvador purchases material x from an unrelated seller in El Salvador for $100. Under the provisions of Article 1 of the Customs Valuation Agreement, transaction value is the price actually paid or payable for the goods when sold for export to the country of importation adjusted in accordance with the provisions of Article 8. In order to apply Article 1 to this domestic purchase by the producer, such purchase is treated as if it were a sale for export to the country of importation. Therefore, for purposes of determining the adjusted value of material x, Article 1 transaction value is the price actually paid or payable for the goods when sold to the producer in El Salvador ($100), adjusted in accordance with the provisions of Article 8. In this example, it is irrelevant whether material x was initially imported into El Salvador by the seller (or by anyone else). So long as the producer acquired material x in El Salvador, it is intended that the value of material x will be determined on the basis of the price actually paid or payable by the producer adjusted in accordance with the provisions of Article 8.
Example 2.
Same facts as in Example 1, except that the sale between the seller and the producer is subject to certain restrictions that preclude the application of Article 1. Under Article 2 of the Customs Valuation Agreement, the value is the transaction value of identical goods sold for export to the same country of importation and exported at or about the same time as the goods being valued. In order to permit the application of Article 2 to the domestic acquisition by the producer, it should be modified so that the value is the transaction value of identical goods sold within El Salvador at or about the same time the goods were sold to the producer in El Salvador. Thus, if the seller of material x also sold an identical material to another buyer in El Salvador without restrictions, that other sale would be used to determine the adjusted value of material x.
(c) Permissible additions to, and deductions from, the value of materials—
(1) Additions to originating materials. For originating materials, the following expenses, if not included under paragraph (a) of this section, may be added to the value of the originating material:
(i) The costs of freight, insurance, packing, and all other costs incurred in transporting the material within or between the territory of one or more of the Parties to the location of the producer;
(ii) Duties, taxes, and customs brokerage fees on the material paid in the territory of one or more of the Parties, other than duties and taxes that are waived, refunded, refundable, or otherwise recoverable, including credit against duty or tax paid or payable; and
(iii) The cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or byproducts.
(2) Deductions from non-originating materials. For non-originating materials, if included under paragraph (a) of this section, the following expenses may be deducted from the value of the non-originating material:
(i) The costs of freight, insurance, packing, and all other costs incurred in transporting the material within or between the territory of one or more of the Parties to the location of the producer;
(ii) Duties, taxes, and customs brokerage fees on the material paid in the territory of one or more of the Parties, other than duties and taxes that are waived, refunded, refundable, or otherwise recoverable, including credit against duty or tax paid or payable;
(iii) The cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or by-products; and
(iv) The cost of originating materials used in the production of the non-originating material in the territory of one or more of the Parties.
(d) Accounting method. Any cost or value referenced in General Note 29, HTSUS, and this subpart, must be recorded and maintained in accordance with the Generally Accepted Accounting Principles applicable in the territory of the Party in which the good is produced.

Title 19 published on 2014-04-01

The following are only the Rules published in the Federal Register after the published date of Title 19.

For a complete list of all Rules, Proposed Rules, and Notices view the Rulemaking tab.

  • 2014-05-27; vol. 79 # 101 - Tuesday, May 27, 2014
    1. 79 FR 30356 - African Growth and Opportunity Act (AGOA) and Generalized System of Preferences and Trade Benefits Under AGOA
      GPO FDSys XML | Text
      DEPARTMENT OF THE TREASURY, DEPARTMENT OF HOMELAND SECURITY, U.S. Customs and Border Protection
      Final rule.
      Effective June 26, 2014.
      19 CFR Parts 10, 163, and 178

This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.

This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].

It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.


United States Code
U.S. Code: Title 15 - COMMERCE AND TRADE
U.S. Code: Title 19 - CUSTOMS DUTIES

§ 66 - Rules and forms prescribed by Secretary

§ 1202 - Harmonized Tariff Schedule

§ 1309 - Supplies for certain vessels and aircraft

§ 1313 - Drawback and refunds

§ 1317 - Tobacco products; supplies for certain vessels and aircraft

§ 1321 - Administrative exemptions

§ 1322 - International traffic and rescue work; United States-Mexico Boundary Treaty of 1970

§ 1401a - Value

§ 1402 - Repealed.

§ 1434 - Entry; vessels

§ 1435 - Repealed.

§ 1481 - Invoice; contents

§ 1484 - Entry of merchandise

§ 1486 - Administration of oaths

§ 1498 - Entry under regulations

§ 1508 - Recordkeeping

§ 1520 - Refunds and errors

§ 1557 - Entry for warehouse

§ 1623 - Bonds and other security

§ 1624 - General regulations

§ 2112 note - Barriers to and other distortions of trade

§ 2461 - Authority to extend preferences

§ 2462 - Designation of beneficiary developing countries

§ 2463 - Designation of eligible articles

§ 2464 - Review and report to Congress

§ 2465 - Date of termination

§ 2466 - Agricultural exports of beneficiary developing countries

§ 2466a - Designation of sub-Saharan African countries for certain benefits

§ 2466b - Termination of benefits for sub-Saharan African countries

§ 2467 - Definitions

§ 2501 - Short title

§ 2701 - Authority to grant duty-free treatment

§ 2702 - Beneficiary country

§ 2703 - Eligible articles

§ 2703a - Special rules for Haiti

19 U.S. Code § 2703a - Special rules for Haiti

§ 2704 - International Trade Commission reports on impact of Caribbean Basin Economic Recovery Program

§ 2705 - Impact study by Secretary of Labor

§ 2706 - Effective date

§ 2707 - Center for the Study of Western Hemispheric Trade

§ 3203 - Eligible articles

§ 3314 - Implementing actions in anticipation of entry into force and initial regulations

§ 3592 - Rules of origin for textile and apparel products

§ 3721 - Treatment of certain textiles and apparel

§ 3805 - Implementation of trade agreements

§ 4001 note - Purposes

USC: Title 26a
Statutes at Large
Public Laws

Title 19 published on 2014-04-01

The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 19 CFR 10 after this date.

  • 2014-05-27; vol. 79 # 101 - Tuesday, May 27, 2014
    1. 79 FR 30356 - African Growth and Opportunity Act (AGOA) and Generalized System of Preferences and Trade Benefits Under AGOA
      GPO FDSys XML | Text
      DEPARTMENT OF THE TREASURY, DEPARTMENT OF HOMELAND SECURITY, U.S. Customs and Border Protection
      Final rule.
      Effective June 26, 2014.
      19 CFR Parts 10, 163, and 178