19 U.S.C. § 1401a — Value

Page 139 TITLE 19—CUSTOMS DUTIES § 1401a 114–125, set out as a note under section 211 of Title 6, Domestic Security. EFFECTIVE DATE OF 2004 AMENDMENT Pub. L. 108–429, title I, § 1561(d), Dec. 3, 2004, 118 Stat. 2582, provided that: ‘‘This section [amending this sec- tion and section 1629 of this title and repealing provi- sions set out as a note under section 1629 of this title], and the amendments made by this section, take effect on the date of the enactment of this Act [Dec. 3, 2004].’’ Pub. L. 108–429, title II, § 2108, Dec. 3, 2004, 118 Stat. 2598, provided that: ‘‘The amendments made by this subtitle [subtitle B (§§ 2101–2108) of title II of Pub. L. 108–429, amending this section and sections 1484, 1501, 1504, 1514, 1515, and 1520 of this title] shall apply to mer- chandise entered, or withdrawn from warehouse for consumption, on or after the 15th day after the date of the enactment of this Act [Dec. 3, 2004].’’ EFFECTIVE DATE OF 1996 AMENDMENT Amendment by section 3(a)(6)(A) of Pub. L. 104–295 applicable as of Dec. 8, 1993, see section 3(b) of Pub. L. 104–295, set out as a note under section 1321 of this title. EFFECTIVE DATE OF 1970 AMENDMENT For effective date of amendment by Pub. L. 91–271, see section 203 of Pub. L. 91–271, set out as a note under section 1500 of this title. EFFECTIVE DATE OF 1955 AMENDMENT Act June 30, 1955, ch. 258, § 2(d), 69 Stat. 242, provided that: ‘‘The amendments made by this section [amend- ing this section, sections 1557, 1562, and 1709 of this title, and sections 542, 544, and 545 of Title 18, Crimes and Criminal Procedure] shall take effect on the day following the day on which this Act is enacted [July 1, 1955].’’ EFFECTIVE DATE OF 1938 AMENDMENT Act June 25, 1938, ch. 679, § 37, 52 Stat. 1094, provided that: ‘‘Sections 31 and 34 of this Act [amending section 1001 of this title] shall take effect on the date of enact- ment of this Act [June 25, 1938]. Except as otherwise specially provided in this Act, the remainder of this Act [amending this section and sections 1001, 1201, 1304, 1308, 1309, 1315, 1317, 1402, 1451, 1459, 1460, 1484, 1485, 1491, 1499, 1501, 1516, 1520, 1524, 1553, 1557, 1558, 1559, 1562, 1563, 1603, 1607, 1609, 1613, 1623, and 1709 of this title, enacting sections 1321, 1467, and 1528 of this title, and amending section 331 of former Title 46, Shipping] shall take ef- fect on the thirtieth day following the date of its enact- ment.’’ TRANSFER OF FUNCTIONS For transfer of functions, personnel, assets, and li- abilities of the United States Customs Service of the Department of the Treasury, including functions of the Secretary of the Treasury relating thereto, to the Sec- retary of Homeland Security, and for treatment of re- lated references, see sections 203(1), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of Novem- ber 25, 2002, as modified, set out as a note under section 542 of Title 6. For establishment of U.S. Customs and Border Protection in the Department of Homeland Se- curity, treated as if included in Pub. L. 107–296 as of Nov. 25, 2002, see section 211 of Title 6, as amended gen- erally by Pub. L. 114–125, and section 802(b) of Pub. L. 114–125, set out as a note under section 211 of Title 6. For transfer of authorities, functions, personnel, and assets of the Coast Guard, including the authorities and functions of the Secretary of Transportation relat- ing thereto, to the Department of Homeland Security, and for treatment of related references, see sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic Secu- rity, and the Department of Homeland Security Reor- ganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6. Executive Documents CHANGE OF NAME United States Customs Service substituted for Bu- reau of Customs in subsec. (i) pursuant to Treasury De- partment Order 165–23, Apr. 4, 1973, eff. Aug. 1, 1973, 38 F.R. 13037. See, also, section 308 of Title 31, Money and Finance. TRANSFER OF FUNCTIONS Functions of all officers of Department of the Treas- ury and functions of all agencies and employees of such Department transferred, with certain exceptions, to Secretary of the Treasury, with power vested in him to authorize their performance or performance of any of his functions, by any of those officers, agencies, and employees, by Reorg. Plan No. 26 of 1950, §§ 1, 2, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set out in the Appendix to Title 5, Government Organization and Em- ployees. § 1401a. Value (a) Generally (1) Except as otherwise specifically provided for in this chapter, imported merchandise shall be appraised, for the purposes of this chapter, on the basis of the following: (A) The transaction value provided for under subsection (b). (B) The transaction value of identical mer- chandise provided for under subsection (c), if the value referred to in subparagraph (A) can- not be determined, or can be determined but cannot be used by reason of subsection (b)(2). (C) The transaction value of similar mer- chandise provided for under subsection (c), if the value referred to in subparagraph (B) can- not be determined. (D) The deductive value provided for under subsection (d), if the value referred to in sub- paragraph (C) cannot be determined and if the importer does not request alternative valu- ation under paragraph (2). (E) The computed value provided for under subsection (e), if the value referred to in sub- paragraph (D) cannot be determined. (F) The value provided for under subsection (f), if the value referred to in subparagraph (E) cannot be determined. (2) If the value referred to in paragraph (1)(C) cannot be determined with respect to imported merchandise, the merchandise shall be appraised on the basis of the computed value provided for under paragraph (1)(E), rather than the deduc- tive value provided for under paragraph (1)(D), if the importer makes a request to that effect to the customs officer concerned within such time as the Secretary shall prescribe. If the computed value of the merchandise cannot subsequently be determined, the merchandise may not be ap- praised on the basis of the value referred to in paragraph (1)(F) unless the deductive value of the merchandise cannot be determined under paragraph (1)(D). (3) Upon written request therefor by the im- porter of merchandise, and subject to provisions of law regarding the disclosure of information, the customs officer concerned shall provide the importer with a written explanation of how the value of that merchandise was determined under this section. Page 140 TITLE 19—CUSTOMS DUTIES § 1401a (b) Transaction value of imported merchandise (1) The transaction value of imported mer- chandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts equal to— (A) the packing costs incurred by the buyer with respect to the imported merchandise; (B) any selling commission incurred by the buyer with respect to the imported merchan- dise; (C) the value, apportioned as appropriate, of any assist; (D) any royalty or license fee related to the imported merchandise that the buyer is re- quired to pay, directly or indirectly, as a con- dition of the sale of the imported merchandise for exportation to the United States; and (E) the proceeds of any subsequent resale, disposal, or use of the imported merchandise that accrue, directly or indirectly, to the sell- er. The price actually paid or payable for imported merchandise shall be increased by the amounts attributable to the items (and no others) de- scribed in subparagraphs (A) through (E) only to the extent that each such amount (i) is not oth- erwise included within the price actually paid or payable; and (ii) is based on sufficient informa- tion. If sufficient information is not available, for any reason, with respect to any amount re- ferred to in the preceding sentence, the trans- action value of the imported merchandise con- cerned shall be treated, for purposes of this sec- tion, as one that cannot be determined. (2)(A) The transaction value of imported mer- chandise determined under paragraph (1) shall be the appraised value of that merchandise for the purposes of this chapter only if— (i) there are no restrictions on the disposi- tion or use of the imported merchandise by the buyer other than restrictions that— (I) are imposed or required by law, (II) limit the geographical area in which the merchandise may be resold, or (III) do not substantially affect the value of the merchandise; (ii) the sale of, or the price actually paid or payable for, the imported merchandise is not subject to any condition or consideration for which a value cannot be determined with re- spect to the imported merchandise; (iii) no part of the proceeds of any subse- quent resale, disposal, or use of the imported merchandise by the buyer will accrue directly or indirectly to the seller, unless an appro- priate adjustment therefor can be made under paragraph (1)(E); and (iv) the buyer and seller are not related, or the buyer and seller are related but the trans- action value is acceptable, for purposes of this subsection, under subparagraph (B). (B) The transaction value between a related buyer and seller is acceptable for the purposes of this subsection if an examination of the cir- cumstances of the sale of the imported merchan- dise indicates that the relationship between such buyer and seller did not influence the price actually paid or payable; or if the transaction value of the imported merchandise closely ap- proximates— (i) the transaction value of identical mer- chandise, or of similar merchandise, in sales to unrelated buyers in the United States; or (ii) the deductive value or computed value for identical merchandise or similar merchan- dise; but only if each value referred to in clause (i) or (ii) that is used for comparison relates to mer- chandise that was exported to the United States at or about the same time as the imported mer- chandise. (C) In applying the values used for comparison purposes under subparagraph (B), there shall be taken into account differences with respect to the sales involved (if such differences are based on sufficient information whether supplied by the buyer or otherwise available to the customs officer concerned) in— (i) commercial levels; (ii) quantity levels; (iii) the costs, commissions, values, fees, and proceeds described in paragraph (1); and (iv) the costs incurred by the seller in sales in which he and the buyer are not related that are not incurred by the seller in sales in which he and the buyer are related. (3) The transaction value of imported mer- chandise does not include any of the following, if identified separately from the price actually paid or payable and from any cost or other item referred to in paragraph (1): (A) Any reasonable cost or charge that is in- curred for— (i) the construction, erection, assembly, or maintenance of, or the technical assistance provided with respect to, the merchandise after its importation into the United States; or (ii) the transportation of the merchandise after such importation. (B) The customs duties and other Federal taxes currently payable on the imported mer- chandise by reason of its importation, and any Federal excise tax on, or measured by the value of, such merchandise for which vendors in the United States are ordinarily liable. (4) For purposes of this subsection— (A) The term ‘‘price actually paid or pay- able’’ means the total payment (whether di- rect or indirect, and exclusive of any costs, charges, or expenses incurred for transpor- tation, insurance, and related services inci- dent to the international shipment of the mer- chandise from the country of exportation to the place of importation in the United States) made, or to be made, for imported merchan- dise by the buyer to, or for the benefit of, the seller. (B) Any rebate of, or other decrease in, the price actually paid or payable that is made or otherwise effected between the buyer and sell- er after the date of the importation of the merchandise into the United States shall be disregarded in determining the transaction value under paragraph (1). (c) Transaction value of identical merchandise and similar merchandise (1) The transaction value of identical mer- chandise, or of similar merchandise, is the Page 141 TITLE 19—CUSTOMS DUTIES § 1401a transaction value (acceptable as the appraised value for purposes of this chapter under sub- section (b) but adjusted under paragraph (2) of this subsection) of imported merchandise that is— (A) with respect to the merchandise being appraised, either identical merchandise or similar merchandise, as the case may be; and (B) exported to the United States at or about the time that the merchandise being appraised is exported to the United States. (2) Transaction values determined under this subsection shall be based on sales of identical merchandise or similar merchandise, as the case may be, at the same commercial level and in substantially the same quantity as the sales of the merchandise being appraised. If no such sale is found, sales of identical merchandise or simi- lar merchandise at either a different commer- cial level or in different quantities, or both, shall be used, but adjusted to take account of any such difference. Any adjustment made under this paragraph shall be based on sufficient information. If in applying this paragraph with respect to any imported merchandise, two or more transaction values for identical merchan- dise, or for similar merchandise, are determined, such imported merchandise shall be appraised on the basis of the lower or lowest of such val- ues. (d) Deductive value (1) For purposes of this subsection, the term ‘‘merchandise concerned’’ means the merchan- dise being appraised, identical merchandise, or similar merchandise. (2)(A) The deductive value of the merchandise being appraised is whichever of the following prices (as adjusted under paragraph (3)) is appro- priate depending upon when and in what condi- tion the merchandise concerned is sold in the United States: (i) If the merchandise concerned is sold in the condition as imported at or about the date of importation of the merchandise being ap- praised, the price is the unit price at which the merchandise concerned is sold in the greatest aggregate quantity at or about such date. (ii) If the merchandise concerned is sold in the condition as imported but not sold at or about the date of importation of the merchan- dise being appraised, the price is the unit price at which the merchandise concerned is sold in the greatest aggregate quantity after the date of importation of the merchandise being ap- praised but before the close of the 90th day after the date of such importation. (iii) If the merchandise concerned was not sold in the condition as imported and not sold before the close of the 90th day after the date of importation of the merchandise being ap- praised, the price is the unit price at which the merchandise being appraised, after further processing, is sold in the greatest aggregate quantity before the 180th day after the date of such importation. This clause shall apply to appraisement of merchandise only if the im- porter so elects and notifies the customs offi- cer concerned of that election within such time as shall be prescribed by the Secretary. (B) For purposes of subparagraph (A), the unit price at which merchandise is sold in the great- est aggregate quantity is the unit price at which such merchandise is sold to unrelated persons, at the first commercial level after importation (in cases to which subparagraph (A)(i) or (ii) ap- plies) or after further processing (in cases to which subparagraph (A)(iii) applies) at which such sales take place, in a total volume that is (i) greater than the total volume sold at any other unit price, and (ii) sufficient to establish the unit price. (3)(A) the price determined under paragraph (2) shall be reduced by an amount equal to— (i) any commission usually paid or agreed to be paid, or the addition usually made for prof- it and general expenses, in connection with sales in the United States of imported mer- chandise that is of the same class or kind, re- gardless of the country of exportation, as the merchandise concerned; (ii) the actual costs and associated costs of transportation and insurance incurred with re- spect to international shipments of the mer- chandise concerned from the country of expor- tation to the United States; (iii) the usual costs and associated costs of transportation and insurance incurred with re- spect to shipments of such merchandise from the place of importation to the place of deliv- ery in the United States, if such costs are not included as a general expense under clause (i); (iv) the customs duties and other Federal taxes currently payable on the merchandise concerned by reason of its importation, and any Federal excise tax on, or measured by the value of, such merchandise for which vendors in the United States are ordinarily liable; and (v) (but only in the case of a price deter- mined under paragraph (2)(A)(iii)) the value added by the processing of the merchandise after importation to the extent that the value is based on sufficient information relating to cost of such processing. (B) For purposes of applying paragraph (A)— (i) the deduction made for profits and gen- eral expenses shall be based upon the import- er’s profits and general expenses, unless such profits and general expenses are inconsistent with those reflected in sales in the United States of imported merchandise of the same class or kind, in which case the deduction shall be based on the usual profit and general expenses reflected in such sales, as determined from sufficient information; and (ii) any State or local tax imposed on the importer with respect to the sale of imported merchandise shall be treated as a general ex- pense. (C) The price determined under paragraph (2) shall be increased (but only to the extent that such costs are not otherwise included) by an amount equal to the packing costs incurred by the importer or the buyer, as the case may be, with respect to the merchandise concerned. (D) For purposes of determining the deductive value of imported merchandise, any sale to a person who supplies any assist for use in connec- tion with the production or sale for export of the merchandise concerned shall be disregarded. Page 142 TITLE 19—CUSTOMS DUTIES § 1401a (e) Computed value (1) The computed value of imported merchan- dise is the sum of— (A) the cost or value of the materials and the fabrication and other processing of any kind employed in the production of the im- ported merchandise; (B) an amount for profit and general ex- penses equal to that usually reflected in sales of merchandise of the same class or kind as the imported merchandise that are made by the producers in the country of exportation for export to the United States; (C) any assist, if its value is not included under subparagraph (A) or (B); and (D) the packing costs. (2) For purposes of paragraph (1)— (A) the cost or value of materials under paragraph (1)(A) shall not include the amount of any internal tax imposed by the country of exportation that is directly applicable to the materials or their disposition if the tax is re- mitted or refunded upon the exportation of the merchandise in the production of which the materials were used; and (B) the amount for profit and general ex- penses under paragraph (1)(B) shall be based upon the producer’s profits and expenses, un- less the producer’s profits and expenses are in- consistent with those usually reflected in sales of merchandise of the same class or kind as the imported merchandise that are made by producers in the country of exportation for ex- port to the United States, in which case the amount under paragraph (1)(B) shall be based on the usual profit and general expenses of such producers in such sales, as determined from sufficient information. (f) Value if other values cannot be determined or used (1) If the value of imported merchandise can- not be determined, or otherwise used for the purposes of this chapter, under subsections (b) through (e), the merchandise shall be appraised for the purposes of this chapter on the basis of a value that is derived from the methods set forth in such subsections, with such methods being reasonably adjusted to the extent nec- essary to arrive at a value. (2) Imported merchandise may not be ap- praised, for the purposes of this chapter, on the basis of— (A) the selling price in the United States of merchandise produced in the United States; (B) a system that provides for the appraise- ment of imported merchandise at the higher of two alternative values; (C) the price of merchandise in the domestic market of the country of exportation; (D) a cost of production, other than a value determined under subsection (e) for merchan- dise that is identical merchandise or similar merchandise to the merchandise being ap- praised; (E) the price of merchandise for export to a country other than the United States; (F) minimum values for appraisement; or (G) arbitrary or fictitious values. This paragraph shall not apply with respect to the ascertainment, determination, or estimation of foreign market value or United States price under subtitle IV of this chapter. (g) Special rules (1) For purposes of this section, the persons specified in any of the following subparagraphs shall be treated as persons who are related: (A) Members of the same family, including brothers and sisters (whether by whole or half blood), spouse, ancestors, and lineal descend- ants. (B) Any officer or director of an organization and such organization. (C) An officer or director of an organization and an officer or director of another organiza- tion, if each such individual is also an officer or director in the other organization. (D) Partners. (E) Employer and employee. (F) Any person directly or indirectly own- ing, controlling, or holding with power to vote, 5 percent or more of the outstanding vot- ing stock or shares of any organization and such organization. (G) Two or more persons directly or indi- rectly controlling, controlled by, or under common control with, any person. (2) For purposes of this section, merchandise (including, but not limited to, identical mer- chandise and similar merchandise) shall be treated as being of the same class or kind as other merchandise if it is within a group or range of merchandise produced by a particular industry or industry sector. (3) For purposes of this section, information that is submitted by an importer, buyer, or pro- ducer in regard to the appraisement of merchan- dise may not be rejected by the customs officer concerned on the basis of the accounting method by which that information was prepared, if the preparation was in accordance with generally accepted accounting principles. The term ‘‘gen- erally accepted accounting principles’’ refers to any generally recognized consensus or substan- tial authoritative support regarding— (A) which economic resources and obliga- tions should be recorded as assets and liabil- ities; (B) which changes in assets and liabilities should be recorded; (C) how the assets and liabilities and changes in them should be measured; (D) what information should be disclosed and how it should be disclosed; and (E) which financial statements should be prepared. The applicability of a particular set of generally accepted accounting principles will depend upon the basis on which the value of the merchandise is sought to be established. (h) Definitions As used in this section— (1)(A) The term ‘‘assist’’ means any of the following if supplied directly or indirectly, and free of charge or at reduced cost, by the buyer of imported merchandise for use in connection with the production or the sale for export to the United States of the merchandise: (i) Materials, components, parts, and simi- lar items incorporated in the imported mer- chandise. Page 143 TITLE 19—CUSTOMS DUTIES § 1401a (ii) Tools, dies, molds, and similar items used in the production of the imported mer- chandise. (iii) Merchandise consumed in the produc- tion of the imported merchandise. (iv) 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. (B) No service or work to which subpara- graph (A)(iv) applies shall be treated as an as- sist for purposes of this section if such service or work— (i) is performed by an individual who is domiciled within the United States; (ii) is performed by that individual while he is acting as an employee or agent of the buyer of the imported merchandise; and (iii) is incidental to other engineering, de- velopment, artwork, design work, or plans or sketches that are undertaken within the United States. (C) For purposes of this section, the fol- lowing apply in determining the value of as- sists described in subparagraph (A)(iv): (i) The value of an assist that is available in the public domain is the cost of obtaining copies of the assist. (ii) If the production of an assist occurred in the United States and one or more foreign countries, the value of the assist is the value thereof that is added outside the United States. (2) The term ‘‘identical merchandise’’ means— (A) merchandise that is identical in all re- spects to, and was produced in the same country and by the same person as, the mer- chandise being appraised; or (B) if merchandise meeting the require- ments under subparagraph (A) cannot be found (or for purposes of applying subsection (b)(2)(B)(i), regardless of whether merchan- dise meeting such requirements can be found), merchandise that is identical in all respects to, and was produced in the same country as, but not produced by the same person as, the merchandise being appraised. Such term does not include merchandise that incorporates or reflects any engineering, de- velopment, artwork, design work, or plan or sketch that— (I) was supplied free or at reduced cost by the buyer of the merchandise for use in con- nection with the production or the sale for export to the United States of the merchan- dise; and (II) is not an assist because undertaken within the United States. (3) The term ‘‘packing costs’’ means the cost of all containers and coverings of whatever na- ture and of packing, whether for labor or ma- terials, used in placing merchandise in condi- tion, packed ready for shipment to the United States. (4) The term ‘‘similar merchandise’’ means— (A) merchandise that— (i) was produced in the same country and by the same person as the merchandise being appraised, (ii) is like the merchandise being ap- praised in characteristics and component material, and (iii) is commercially interchangeable with the merchandise being appraised; or (B) if merchandise meeting the require- ments under subparagraph (A) cannot be found (or for purposes of applying subsection (b)(2)(B)(i), regardless of whether merchan- dise meeting such requirements can be found), merchandise that— (i) was produced in the same country as, but not produced by the same person as, the merchandise being appraised, and (ii) meets the requirement set forth in subparagraph (A)(ii) and (iii). Such term does not include merchandise that incorporates or reflects any engineering, de- velopment, artwork, design work, or plan or sketch that— (I) was supplied free or at reduced cost by the buyer of the merchandise for use in con- nection with the production or the sale for export to the United States of the merchan- dise; and (II) is not an assist because undertaken within the United States. (5) The term ‘‘sufficient information’’, when required under this section for determining— (A) any amount— (i) added under subsection (b)(1) to the price actually paid or payable, (ii) deducted under subsection (d)(3) as profit or general expense or value from further processing, or (iii) added under subsection (e)(2) as prof- it or general expense; (B) any difference taken into account for purposes of subsection (b)(2)(C); or (C) any adjustment made under subsection (c)(2); means information that establishes the accu- racy of such amount, difference, or adjust- ment. (June 17, 1930, ch. 497, title IV, § 402, as added Aug. 2, 1956, ch. 887, § 2(a), 70 Stat. 943; amended Pub. L. 96–39, title II, § 201(a), July 26, 1979, 93 Stat. 194; Pub. L. 96–490, § 2, Dec. 2, 1980, 94 Stat. 2556.) Editorial Notes AMENDMENTS 1980—Subsec. (b)(2)(B). Pub. L. 96–490 amended par. (B) generally, omitting cl. (iii) which provided that ‘‘the transaction value determined under this sub- section in sales to unrelated buyers of merchandise, for exportation to the United States, that is identical in all respects to the imported merchandise but was not produced in the country in which the imported mer- chandise was produced’’, and omitting the provision re- lating to cl. (iii) which provided that ‘‘No two sales to unrelated buyers may be used for comparison for pur- poses of clause (iii) unless the sellers are unrelated.’’ 1979—Pub. L. 96–39 completely revised statutory standards for appraising the value of imported mer- chandise to conform to Customs Valuation Agreement, incorporating, as part of that revision, a new format of five methods of determining customs value in subsecs. (b) through (f), a group of special rules in subsec. (g), and definition of terms in subsec. (h). Page 144 TITLE 19—CUSTOMS DUTIES § 1401a Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1980 AMENDMENT Pub. L. 96–490, § 2, Dec. 2, 1980, 94 Stat. 2556, provided in part that the amendment made by that section is ‘‘effective on the latest of— ‘‘(1) the date on which the amendments made by title II of the Trade Agreements Act of 1979 (except the amendments made by section 223(b)) take effect [July 1, 1980], ‘‘(2) the date on which the President accepts the Protocol [to the Agreement on Implementation of Ar- ticle VII of the General Agreement on Tariffs and Trade] for the United States [Dec. 30, 1980], or ‘‘(3) the date on which the President determines that the European Economic Community has imple- mented the Protocol under its laws [Jan. 1, 1981], and effective with respect to merchandise exported to the United States on or after that date’’. [For delegation of authority of the President to make the determinations required by pars. (1) to (3), above, to the United States Trade Representative, see Memo- randum of President of the United States, Dec. 17, 1980, 45 F.R. 83467.] [For determination of the United States Trade Rep- resentative that the conditions of pars. (1) to (3), above, were satisfied effective on Jan. 1, 1981, see Determina- tion of United States Trade Representative, 46 F.R. 1073.] EFFECTIVE DATE OF 1979 AMENDMENT; TRANSITION TO NEW VALUATION STANDARDS Pub. L. 96–39, title II, § 204, July 26, 1979, 93 Stat. 202, provided that: ‘‘(a) EFFECTIVE DATE OF AMENDMENTS.— ‘‘(1) IN GENERAL.—Except as provided in paragraph (2), the amendments made by this title [amending the Tariff Schedules of the United States (see Publica- tion of Tariff Schedules note under section 1202 of this title), sections 1332, 1336, 1351, 1401a, 1500, and 2481 of this title, and section 993 of Title 26, Internal Rev- enue Code, repealing section 1402 of this title, and en- acting provisions set out as notes under sections 1202, 1401a, and 2111 of this title] (except the amendments made by section 223(b) [amending schedule 7, part 1, subpart A of the Tariff Schedules of the United States] shall take effect on— ‘‘(A) January 1, 1981, if the Agreement enters into force with respect to the United States by that date; or ‘‘(B) if subparagraph (A) does not apply, that date after January 1, 1981, on which the Agreement en- ters into such force; and shall apply with respect to merchandise that is exported to the United States on or after whichever of such dates applies. ‘‘(2) EARLIER EFFECTIVE DATE UNDER CERTAIN CIR- CUMSTANCES.—If the President determines before Jan- uary 1, 1981, that— ‘‘(A) the European Economic Community has ac- cepted the obligations of the Agreement with re- spect to the United States; and ‘‘(B) each of the member states of the European Economic Community has implemented the Agree- ment under its laws; the President shall by proclamation announce such determination and the amendments made by this title (except the amendments made by section 223(b) [amending schedule 7, part 1, subpart A of the Tariff Schedules of the United States] shall take effect on the date specified in the proclamation [July 1, 1980] (but not before July 1, 1980) and shall apply with re- spect to merchandise that is exported to the United States on or after such date; except that unless the Agreement enters into force with respect to the United States by January 1, 1981, all provisions of law that were amended by such amendments are revived (as in effect on the day before such amendments took effect) on January 1, 1981, and such provisions— ‘‘(i) shall remain in effect until the date on which the Agreement enters into force with respect to the United States (and on such date the amendments made by this title (except the amendments made by section 223(b) [amending schedule 7, part 1, subpart A of the Tariff Schedules of the United States]) are revived and shall apply with respect to merchandise exported to the United States on or after such date); and ‘‘(ii) shall apply with respect to merchandise ex- ported to the United States on or after January 1, 1981, and before the date on which the Agreement enters into such force. ‘‘(b) APPLICATION OF OLD LAW VALUATION STAND- ARDS.—For purposes of the administration of the cus- toms laws, all merchandise (other than merchandise to which subsections (a) and (c) apply) shall be appraised on the same basis, and in the same manner, as if the amendments made by this title had not been enacted. ‘‘(c) SPECIAL TREATMENT FOR CERTAIN RUBBER FOOT- WEAR.—The amendments made by section 223(b) [amending schedule 7, part 1, subpart A of the Tariff Schedules of the United States] shall take effect July 1, 1981, or, if later, the date on which the Agreement en- ters into force with respect to the United States, and shall apply, together with the other amendments made by this title, to rubber footwear exported to the United States on or after such date. For purposes of the ad- ministration of the customs laws, all rubber footwear (other than rubber footwear to which the preceding sentence applies) shall be appraised on the same basis, and in the same manner, as if the amendments made by this title had not been enacted. ‘‘(d) DEFINITION.—For purposes of this section, the term ‘rubber footwear’ means articles described in item 700.60 of the Tariff Schedules of the United States (as in effect on the day before the day on which the amend- ments made by section 223(b) [amending schedule 7, part 1, subpart A of the Tariff Schedules of the United States] take effect).’’ [For Presidential proclamation specifying in accord- ance with subsec. (a)(2), above, that the amendments by title II of Pub. L. 96–39 are effective July 1, 1980, see sections 5(b) and 2(a) of Proc. No. 4768, June 28, 1980, 45 F.R. 45136, 45137, set out as a note under section 2111 of this title.] EFFECTIVE DATE Act Aug. 2, 1956, ch. 887, § 8, 70 Stat. 949, provided that: ‘‘This Act [enacting this section and provisions set out in notes under this section and sections 2, 160, 1351, and 1402 of this title, amending sections 1001, 1402, 1500, and 1583 of this title, and sections 372 and 711 of former Title 31, Money and Finance, and repealing sec- tions 12 to 18, 21 to 24, 26 to 28, 30, 40, 53 to 57, 59, 61, 62, 67, 376, 379, 390, 494, 526, 541, 542, 549, and 579 of this title] shall be effective on and after the day following the date of its enactment [Aug. 2, 1956], except that sec- tion 2 [enacting this section and provisions set out in note under section 1351 of this title, and amending sec- tions 1001, 1336, and 1402 of this title] shall be effective only as to articles entered, or withdrawn from ware- house, for consumption on or after the thirtieth day following the publication of the final list provided for in section 6(a) of this Act [set out in note under section 1402 of this title], and section 3 [amending section 372 of former Title 31] shall be effective as to entries filed on or after the thirtieth day following the date of en- actment of this Act [Aug. 2, 1956].’’ PRESIDENTIAL REPORT TO CONGRESS ON OPERATION OF AGREEMENT ON IMPLEMENTATION OF ARTICLE VII OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE OVER 2-YEAR PERIOD Pub. L. 96–39, title II, § 203, July 26, 1979, 93 Stat. 202, provided that: ‘‘As soon as practicable after the close of the 2-year period beginning on the date on which the amendments made by this title (other than section 223(b), relating to certain rubber footwear) take effect Page 145 TITLE 19—CUSTOMS DUTIES § 1411 [see Effective Date of 1979 Amendment note set out above], the President shall prepare and submit to Con- gress a report containing an evaluation of the oper- ation of the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade ap- proved under section 2(a) [section 2503(a) of this title] (hereinafter in this subtitle referred to as the ‘Agree- ment’), both domestically and internationally, during that period.’’ LIST OF ARTICLES TO BE VALUED; PRELIMINARY LIST; ADDITIONS; FINAL LIST; TRANSMITTAL TO CONGRES- SIONAL COMMITTEES Act Aug. 2, 1956, ch. 887, § 6, 70 Stat. 948, provided that: ‘‘(a) The Secretary of the Treasury shall determine and make public a list of the articles which shall be valued in accordance with section 402a, Tariff Act of 1930, as amended by this Act [former section 1402 of this title], as follows: ‘‘As soon as practicable after the enactment of this Act [Aug. 2, 1956] the Secretary shall make public a preliminary list of the imported articles which he shall have determined, after such investigation as he deems necessary, would have been appraised in accordance with section 402 of the Tariff Act of 1930, as amended by this Act [this section], at average values for each arti- cle which are 95 (or less) per centum of the average val- ues at which such article was actually appraised during the fiscal year 1954. If within sixty days after the publi- cation of such preliminary list any manufacturer, pro- ducer, or wholesaler in the United States presents to the Secretary his reason for belief that any imported articles not specified in such list and like or similar to articles manufactured, produced, or sold at wholesale by him would have been appraised in accordance with such section 402 [section 1401a of this title] at average values which are 95 (or less) per centum of the average values at which they were or would have been appraised under section 402a, Tariff Act of 1930, as amended by this Act, the Secretary shall cause such investigation of the matter to be made as he deems necessary. If in the opinion of the Secretary the reason for belief is substantiated by the investigation, the articles in- volved shall be added to the preliminary list and such list, including any additions so made thereto, shall be published as a final list. Every article so specified in the final list which is entered, or withdrawn from ware- house, for consumption on or after the thirtieth day following the date of publication of the final list shall be appraised in accordance with the provisions of sec- tion 402a, Tariff Act of 1930, as amended by this Act. ‘‘(b) The final list published in accordance with the provisions of subsection (a), together with explanatory data, shall be transmitted promptly to the chairmen of the Committee on Ways and Means of the House of Rep- resentatives and the Committee on Finance of the Sen- ate.’’ § 1402. Repealed. Pub. L. 96–39, title II, § 201(b), July 26, 1979, 93 Stat. 201 Section, acts June 17, 1930, ch. 497, title IV, § 402a, for- merly § 402, 46 Stat. 708; June 25, 1938, ch. 679, § 8, 52 Stat. 1081, renumbered and amended Aug. 2, 1956, ch. 887, § 2(a), (f), 70 Stat. 943, 946; June 2, 1970, Pub. L. 91–271, title III, § 301(d), 84 Stat. 288, provided an alter- native basis for valuation of articles designated by the Secretary of Treasury as provided for by act Aug. 2, 1956, ch. 887, § 6(a), 70 Stat. 948, as either the foreign value or the export value, whichever is higher, or if the appropriate customs officer determines that neither the foreign value nor the export value can be satisfac- torily ascertained, then the United States value, or if the appropriate customs officer determines that nei- ther the foreign value, the export value, nor the United States value can be satisfactorily ascertained, then the cost of production, or in the case of an article with re- spect to which there is in effect under section 1336 of this title a rate of duty based upon the American sell- ing price of a domestic article, then the American sell- ing price of such article, defined foreign value, export value, United States value, cost of production, and American selling price, and provided for review of the decision of the appropriate customs officer. Provisions similar to those of this section were con- tained in act Oct. 3, 1913, ch. 16, § III, L and R, 38 Stat. 185, 189, and in act May 27, 1921, ch. 14, title III, §§ 301–304, 42 Stat. 15, 16, all of which were superseded by act Sept. 21, 1922, ch. 356, title IV, § 402, 42 Stat. 949, and were repealed by section 643 thereof. Section 402 of the 1922 act was superseded by section 402 of act June 17, 1930, comprising this section, and repealed by section 651(a)(1) of the 1930 act. Earlier provisions on the subject were contained in R.S. §§ 2905–2907, and 2952, prior to repeal by act June 10, 1890, ch. 407, § 29, 26 Stat. 141; and in act June 10, 1890, ch. 407, §§ 11 and 19, 26 Stat. 136, 139, as amended by act July 24, 1897, ch. 11, § 32, 30 Stat. 211, and act Aug. 5, 1909, ch. 6, § 28, 36 Stat. 97, 101, prior to repeal by act Oct. 3, 1913, ch. 16, § IV, S, 38 Stat. 201. R.S. § 2906, requiring the collector to cause the actual market value, or wholesale price at the period of expor- tation, to be appraised, and providing that such ap- praised value should be considered the value upon which duty should be assessed, and R.S. § 2913, relative to the appraisement of gloves protected by trademark, were repealed by section 642 of the act of Sept. 21, 1922, ch. 356, title IV, § 643, 42 Stat. 989. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal effective July 1, 1980, see section 204(a)(2) of Pub. L. 96–39, set out as an Effective Date of 1979 Amendment note under section 1401a of this title. SUBPART B—NATIONAL CUSTOMS AUTOMATION PROGRAM § 1411. National Customs Automation Program (a) Establishment The Secretary shall establish the National Customs Automation Program (hereinafter in this subpart referred to as the ‘‘Program’’) which shall be an automated and electronic sys- tem for processing commercial importations and shall include the following existing and planned components: (1) Existing components: (A) The electronic entry of merchandise. (B) The electronic entry summary of re- quired information. (C) The electronic transmission of invoice information. (D) The electronic transmission of mani- fest information. (E) Electronic payments of duties, fees, and taxes. (F) The electronic status of liquidation and reliquidation. (G) The electronic selection of high risk entries for examination (cargo selectivity and entry summary selectivity). (2) Planned components: (A) The electronic filing and status of pro- tests. (B) The electronic filing (including remote filing under section 1414 of this title) of entry information with the Customs Service at any location. (C) The electronic filing of import activity summary statements and reconciliation. (D) The electronic filing of bonds.