Tooling, dies, and molds are physical items used to produce the imported merchandise. When the U.S. buyer supplies these items to the foreign manufacturer free of charge or at reduced cost, they are treated as assists under 19 U.S.C. § 1401a(h)(1)(A)(ii) and their apportioned value is added to the price actually paid or payable.
Common examples include:
- Injection molds for plastic parts
- Stamping dies for metal parts
- Casting molds for foundry products
- Cutting tools, jigs, fixtures, gauges
- Specialized fixtures for assembly lines
The full value of the assist is its acquisition or production cost plus transportation to the place of production. If the tooling was previously used elsewhere, the value is its book value at the time of supply to the foreign manufacturer. If the tooling was produced by the buyer for the specific purpose of the import program, the value is the cost of production.
The assist value is then apportioned across the units of merchandise it benefits. Common methods include:
- Total production run — apportion over the estimated total units the tool will produce before wear-out
- First-shipment apportionment — assign the full assist value to the first entry
- Period apportionment — assign over a calendar year or contract period
The importer may choose any reasonable method consistent with GAAP, but the method must be applied consistently and disclosed to CBP. Generra Sportswear Co. v. United States and CBP HQ 547108 are leading authorities.
Tooling assists are one of the most common audit findings. Engineering departments often source tooling separately from purchasing, and the assist value never makes it into the entered value of the production shipments. Prior disclosure is the standard remediation path when a missed tooling assist is discovered.