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October 2026, question 72

Valuation, Appraisement and Duty Assessment · Valuation

If engineering work is necessary for the production of the imported merchandise, it may be an assist for the purposes of appraisement in which ONE of the following scenarios?

  1. The engineering work is performed under contract with the U.S. importer by an individual temporarily domiciled within the United States on assignment by his employer in the Netherlands.
  2. The engineering work is performed under contract with the U.S. importer by an individual domiciled within the United States and works from home for a U.S.- based firm.
  3. The engineering work is performed by an individual who resides in Ireland but is temporarily in the United States working as an employee of the U.S. importer.
  4. The engineering work is performed by an individual domiciled in Canada who is a U.S. citizen and works for a U.S. firm under contract with the U.S. importer.
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CBP's answer: D. D: The engineering work is performed by an individual domiciled in Canada who is a U.S. citizen and works for a U.S. firm under contract with the U.S. importer.

The engineering assist covers engineering, design and plans that are undertaken elsewhere than in the United States and are necessary for production (152.102(a)(1)(iv)). Work done in the United States is not an assist, and 152.102(a)(2) also carves out work performed by an individual domiciled within the United States who is the buyer's employee or agent and whose work is incidental to U.S. engineering. In A, B and C the work is done in the United States, so none is an assist. In D the engineer is domiciled in Canada, so the domicile carve-out in (a)(2)(i) is not met and the work can be an assist, so D is right.

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)
Is performed by an individual domiciled within the United States; 19 CFR 152.102(a)(2)(i)

Search for: undertaken elsewhere than in the United States

CBP's key cites: 19 CFR 152.102(a)(2)(i)

Question and key from CBP's October 2026 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).