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April 2024, question 70

Valuation, Appraisement and Duty Assessment · Valuation

A U.S. hardware company imports hammers from a manufacturer in Argentina. The U.S. company purchases and sends the designs and materials set forth below to the Argentinian manufacturer free of charge to aid in the production process. The cost of which of the following should not be added to the price actually paid or payable as an assist?

  1. Brazilian wood used for the handle
  2. A German origin hammer head mold
  3. A hammer design schematic by a U.S. engineering firm
  4. A Taiwanese lathe machine
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CBP's answer: C. C: A hammer design schematic by a U.S. engineering firm

Design work counts as an assist only when it is undertaken elsewhere than in the United States. The hammer design schematic came from a U.S. engineering firm, so its cost is not added (C). The wood, the German mold and the lathe are materials or tools supplied free and are assists.

Engineering, development, artwork, design work, and plans and sketches that are undertaken elsewhere than in the United States and are necessary for the production of the imported merchandise. 19 CFR 152.102(a)(1)(iv)

Search for: assist engineering development artwork design work undertaken elsewhere than in the United States

CBP's key cites: 19 CFR 152.102(a)(1)(iv)

Question and key from CBP's April 2024 exam and answer key. The walk-through is ours; quotes are from the pinned editions in the reference viewer (HTSUS 2026 Basic, 19 CFR 2025 edition).