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October 2024, question 80
Valuation, Appraisement and Duty Assessment · Valuation
A mold for toys was provided free of charge to a French manufacturer by the U.S. importer. The original cost of the mold was $180,000 but 2/3 of the useful life of the mold had been used by the U.S. importer prior to sending it to France. The U.S. Importer paid the freight cost of $1,600. When calculating transaction value, what is the total value of the assist for the mold?
- $0.00
- $61,600.00
- $180,000.00
- $181,600.00
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CBP's answer: B. B: $61,600.00
For a mold the buyer acquired and used before, the original cost is adjusted downward for prior use, and the assist's value also includes transportation costs to the place of production. With 2/3 of its life used, the mold's remaining value is $60,000 (one-third of $180,000), plus $1,600 freight, so $61,600 (B).
If the assist has been used previously by the buyer, regardless of whether it had been acquired or produced by him, the original cost of acquisition or production would be adjusted downward to reflect its use before its value could be determined. 19 CFR 152.103(d)(2)
the value of the assist would include transportation costs to the place of production 19 CFR 152.103(d)(2)
Search for: assist used previously by the buyer value adjusted downward
CBP's key cites: 19 CFR 152.103(d)(2)
Question and key from CBP's October 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).