Which of the following is considered an assist and should be included in the entered value?
How to get there
19 CFR 152.102(a)(1): Assist"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 … of the merchandise:
(i) Materials, components, parts, and similar items incorporated in the imported merchandise.
(ii) Tools, dies, molds, and similar items used in the production …
(iii) Merchandise consumed in the production …
(iv) Engineering, development, artwork, design work, and plans and sketches that are undertaken elsewhere than in the United States …
(i) Materials, components, parts, and similar items incorporated in the imported merchandise.
(ii) Tools, dies, molds, and similar items used in the production …
(iii) Merchandise consumed in the production …
(iv) Engineering, development, artwork, design work, and plans and sketches that are undertaken elsewhere than in the United States …
Printed circuit assembly components, supplied free by the U.S. importer (the buyer) and incorporated into the switches, fall squarely under (i). The answer is D.
Why the other choices are wrong
A) Engineering plans produced in Omaha: engineering is an assist only if undertaken elsewhere than in the United States ((a)(1)(iv)). Plans made in Nebraska are excluded.
B) Assemblies purchased by the foreign producer: not supplied by the buyer. The producer's own purchases are already in its costs and price.
C) A factory air conditioning system: it isn't incorporated in the goods, isn't a tool, die or mold used to make them, and isn't consumed in production. It's general plant equipment, so not an assist.
Tip
Assist test: (1) supplied by the buyer, (2) free or at reduced cost, (3) one of the four categories, and for design work, done outside the U.S. Then add its value to the price actually paid or payable.
Source: 19 CFR 152.102(a) (eCFR).
CBP answer key: Answer D · 19 CFR 152.102(a)Source: CBP past exams ↗