How does CBP determine the appraised value of imported merchandise? Answer in under 100 words. Cite only eCFR sources.

Details / How it works

Under § 152.101, the value of merchandise exported to the United States on or after July 1, 1980 is determined in accordance with section 402, Tariff Act of 1930 (19 U.S.C. 1401a), as amended by section 201, Trade Agreements Act of 1979.

CBP appraises imported merchandise sequentially through six methods. Transaction value — the price actually paid or payable — is the primary basis. If it cannot be determined or cannot be used because of the limitations in § 152.103(j), CBP moves to the transaction value of identical merchandise, then similar merchandise, then deductive value (based on U.S. selling price), then computed value (based on cost of production), and finally the fallback value method as the last resort.

Numbers & thresholds

Effective dates: July 1, 1980 for general merchandise; July 1, 1981 for articles classified under subheading 6401.10.00 HTSUS. 90 days: window after liquidation for an importer's written explanation request.

Exceptions & edge cases

• Importer's option: An importer may request application of the computed value method before the deductive value method, but the request must be made at the time the entry summary is filed with CBP (at the port of entry or electronically). If computed value fails and deductive value also cannot be determined, the appraised value falls to the § 152.107 fallback method.
• Identical merchandise limitation: The second method applies only where transaction value cannot be determined, or can be determined but cannot be used due to the limitations in § 152.103(j).
• Explanation rights: Within 90 days after liquidation, an importer may make a written request and the Center Director shall provide a reasonable, concise written explanation of how the value was determined; this applies only to that specific merchandise and does not replace protest (part 174) or administrative ruling (part 177) procedures, nor does it require disclosure beyond FOIA or Privacy Act limits.
• Special effective date: Articles classified under subheading 6401.10.00 of the HTSUS follow a later effective date of July 1, 1981.