Newly Released CBP HQ Rulings on March 6
The Customs Rulings Online Search System (CROSS) was updated March 7 with the following headquarters rulings (ruling revocations and modifications will be detailed elsewhere in a separate article as they are announced in the Customs Bulletin):
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H329588: Dutiability of Certain “Force Majeure” Charges
| Ruling: The additional “force majeure” charges paid or payable by the importer to the seller for the merchandise are dutiable as part of the transaction value for the merchandise. |
| Issue: whether the additional “force majeure” charges paid or payable by the importer to the seller are dutiable as part of the transaction value of the merchandise |
| Items: Pipe-in-pipe assemblies for use in a liquefaction plant in the U.S. owned by a third party. The pipe-in-pipe assemblies consist of three pipes that transfer liquefied natural gas from the liquified natural gas storage tanks to the LNG loading arms. The importer purchases the assemblies from an unrelated seller/supplier in France under the Incoterms Free Carrier Louveciennes, France. The importer serves as an engineering, procurement and construction company as well as the importer of record for the merchandise. |
| Reason: Transaction is defined as “the price actually paid or payable for the merchandise when sold for exportation to the United States,” plus amounts for certain statutorily enumerated additions to the extent not otherwise included in the price actually paid or payable. As long as the additional “force majeure” charges were payments by the importer to the seller in connection with the imported merchandise, these payments are dutiable as part of the price paid or payable for the merchandise pursuant to 19 U.S.C. § 1401a(b)(4)(A). |
| Ruling Date: Feb. 23, 2023 |