11/14/2023

Trade and Commercial Regulations Branch

U.S. Customs and Border Protection

1300 Pennsylvania Avenue NW (Mint Annex)

Washington, DC 20229

Re: Written Comments

Department of Homeland Security

Bureau of Customs and Border Protection

Docket ID \[USCBP-2007-0083\]

Proposed interpretation of the expression "Sold for Exportation to the
United States" for purposes of applying the transaction value method of
valuation in a series of sales.

Out of concern for our customers and the volatility of our current
economy we respectfully submit comments to be considered against the
above referenced NPRM.

While the argument by CBP and the WCO Technical Committee on Customs
Valuation: Commentary 22.1 is very well explained there are some
fundamental procedures that are not being taken into account by CBP. Our
judicial system has, for over 20 years, ruled that the "first sale"
value is acceptable. Our legislative process does not allow for CBP to
overrule the judicial precedence currently in place. For this reason
alone this NPRM should be withdrawn.

"Transaction Value" is defined by 19 U.S.C 1401a as "the price actually
paid or payable for merchandise when sold for exportation to the United
States," plus certain statutory additions. This phrase has been
interpreted by courts and does not need to be further interpreted by
CBP. The phrase is clear as stated.

The interpretation by CBP as stated in the NPRM is not of a "sale for
exportation" but a "sale at time of importation." CBP is proposing that
the "last sale" in a series of sales is the only one that can be
considered. With country of origin marking requirements goods are
usually built for exportation which virtually requires the "first sale"
to be for exportation.

We also strongly disagree with the conclusions that, "The first-sale
principle for determining transaction value also makes it difficult for
an importer to meet its obligations under 19 U.S.C. 1484 to use
reasonable care to properly declare the value of imported merchandise."
The burden for valuation is on the importer to declare the cost of goods
along with any commissions, royalties, assists, proceeds, and packing.
Reasonable care is the standard to which all importers must meet.
Importers are still required to declare the appropriate value which can
be the "First Sale" plus these statutory additions. Global communication
and security initiatives such as C-TPAT have increased supply chain
awareness and visibility. Buyers, sellers, trading agencies, importers
and manufacturers are utilizing Non-Circumvention, Non-Disclosure and
Confidentiality Agreements to make the first sale pricing more
transparent.

Lastly our customers are showing the greatest concern over the timing of
this NPRM. The value of the dollar is declining, cost of gas, goods and
services is skyrocketing and our economy is struggling. Our Congress has
passed an economic stimulus package with the intent of boosting our
economy. The Department of Homeland Security ,Customs and Border
Protection is proposing a rule based on a non binding WCO committee
proposal which would increase the dutiable value of imports and further
raise the cost of goods. This proposal is in direct conflict with the
current economic stimulus package passed by congress.

In conclusion we believe that the definition of "Transaction Value as
stated in 19 U.S.C. 1401a is clear as stated and that this NPRM directly
contradicts judicial precedents and cannot be proposed by CBP. This is
an issue of amending U.S. Law and therefore must be introduced by
Congress. We do not believe that the presences of secure trade
initiatives were taken into consideration with regards to the
transparency of the supply chain and "First Sale" value. We are also
disappointed with the timing of the release of this proposal which would
have an immediate negative impact on our economy and citizens. We
therefore respectfully request that the "Proposed Interpretation of the
Expression "Sold for Exportation to the United States" for Purposes of
Applying the Transaction Value Method of Valuation in a Series of
Sales," be withdrawn.

Best Regards,

Kevin Ekstrand

Licensed Customs Broker

Laufer Group International LTD

1446 Taney

North Kansas City, MO 64116

PH: 816-421-2233

FX: 816-421-2426

EM: <kekstrand@laufer.com>

Web: [www.laufer.com](http://www.laufer.com/)