Application for Further Review of Protest Nos. 1101-90- 000645 and 1101-91-000054; Dutiability of Feeder Barge Costs

DEPARTMENT OF THE TREASURY U.S. CUSTOMS SERVICE WASHINGTON, D.C. HQ W544685 July 30, 1991   VAL CO:R:C:V W544685 pmh CATEGORY: Valuation District Director Second and Chesnut Streets Philadelphia, PA 19106 RE: Application for Further Review of Protest Nos. 1101-90- 000645 and 1101-91-000054; Dutiability of Feeder Barge Costs Dear Sir: The above-referenced protests and applications for further review are against your decisions regarding the dutiability of costs for transporting merchandise on feeder barges from Bergen, Norway to Antwerp, Belgium where it was reloaded onto the vessel that transported it to the United States. FACTS: The subject merchandise consists of electrolytic tinplate. Norsk Blikkvalsvark AS ( hereinafter referred to as the seller) in Bergen, Norway, sold the merchandise to Norsk Jernverk AS ( hereinafter referred to as the importer) in the United states. According to the Protest, the terms of the sale were "C.I.F. Loaded on Truck, brokerage, duty, MPF & HMF paid." The merchandise was placed on feeder barges at Bergen, Norway and transported to Antwerp, Belgium where it was loaded onto the vessel that transported it to the United States. Invoices for the merchandise and for containers to be used during transportation have also been submitted. ISSUE : Whether the cost of transportation of the merchandise from Bergen, Norway to Antwerp, Belgium is dutiable as part of the transaction value of the imported merchandise.  -2- LAW AND ANALYS IS: Transaction value is defined in section 402( b)(l) of the Tariff Act of 1930, as amended by the Trade Agreements Act of 1979 ( TAA; 19 u.s.c. 1401a ( b)). This section provides: The term price actually paid or payable means the total payment (whether direct or indirect, and exclusive of any costs, charges, or expenses incurred for transportation, insurance and related services incident to the international shipment of the merchandise ...) made, or to be made, ... by the buyer to , or for the benefit of the seller. In the instant case, the sale for export of the merchandise is the transaction between the seller in Bergen, Norway and the importer in the United States. Therefore, all transportation of the merchandise after it is exported from Norway is considered to be the non-dutiable international shipment of the merchandise within the meaning of section 402( b)(l) of the TAA. We note that the term foreign inland freight refers to the transportation of the merchandise within the country of exportation. HOLDING: All transportation of the merchandise from the country of export to the United States constitutes international shipment of the merchandise within the meaning of section 402( b)( l) of the TAA and as such, is not dutiable. Accordingly, you should grant the protest. A copy of this decision should be attached to the Form 19, Notice of Action, to be sent to the protestant. Sincerely, John Durant, Director Commercial Rulings Division