Study Guide

In addition to the costs and charges listed above, the deductive value method provides for the deduction of either of commissions or profit and general expenses.

Deduct a commission	Deduct profit & general expenses
•     The goods are consigned to an agent or sales representative •     That agent imports the goods and is paid a commission for selling-agency work on behalf of an overseas vendor	•     The goods are resold by a buyer / reseller and transaction value does not apply because an Article 1.1 condition is not met •     The importer incurs expenses and earns profit on the resale in the importing country

The amount deducted should be based on figures supplied by or for the importer, unless they are inconsistent with the profits usually made in the industry. Determining of what “usual” profile and general expense for goods of the same class or kind are when render the Deductive value method effective. Such information may be obtained from industry sources.