From the Rolls-Royce experimental archive: a quarter of a million communications from Rolls-Royce, 1906 to 1960's. Documents from the Sir Henry Royce Memorial Foundation (SHRMF).
Letter from a law firm explaining the assessment of import duty based on different valuation methods.
Identifier | ExFiles\Box 19\4\ Scan253 | |
Date | 9th September 1930 | |
COPY. MASTERS & LEVETT CUSTOMS AND REVENUE LAW NEW YORK. September 9th, 1930. Messrs. Rolls-Royce of America, Inc. Springfield, Mass. Gentlemen: In responding to your enquiry as to assessment of duty on the basis of cost of production, permit me to call your attention to Section 402 of the new tariff act which section prescribes the various bases of value upon which duty is to be assessed depending upon the circumstances surrounding the importation. You will notice that there are five bases of value, namely: The "foreign" value, the "export" value, the "United States" value, the "cost of production" value and the "american" value. With the "american" value we are not concerned because this applies only to coal tar products. The respective values are defined in detail in this section but the salient distinctions are as follows: The "foreign" value is the value at which the goods are freely sold in the country of exportation for home consumption; the "export" value is the value at which the goods are freely sold in the country of exportation for export to the United States; the "United States" value is the price at which the goods are freely sold in the United aStates after importation, allowances being made for duty, etc. the "cost of production" is the cost of labour and materials plus profit and general expenses. These values are applied in order; that is to say, if there is a foreign value that is taken unless there also exists an export value which is higher; in the latter case the export value is taken. If there be no foreign value then the export value is taken if one exists. If there be no foreign nor export value then the United States value is taken if one exists; if there be no foreign, no export and no United States value, then the cost of production is taken. | ||