RE: Decorative Insulated Glass; Transaction Value

HQ H360113 August 5, 2026 OT:RR:CTF:VS H360113 EE CATEGORY: Valuation Kyle Crouch Livingston International 1515 E. Woodfield Road, Suite 770 Schaumburg, IL 60173 RE: Decorative Insulated Glass; Transaction Value Dear Mr. Crouch: This is in response to your request, dated April 23, 2026, filed on behalf of your client, Novatech Entry Doors LLC. (“Novatech”), requesting a prospective ruling on whether non-float glass products which are not subject to antidumping (“AD”)/ countervailing duty (“CVD”) scope orders could be deducted from the customs value of the imported decorative glass. FACTS: You state that Novatech in Ohio imports certain decorative insulated glass purchased through a selling agent, located in the Republic of Korea. The selling agent works with Chinese manufacturers that produce the decorative insulated glass. Yaohua (Qinhuangdao) Glass Co. is the manufacturer in China which produces the float glass. Once the float glass is manufactured, it is shipped to a second manufacturer in China, Qinhuangdao Rongsheng Glass Processing Co., LTD. (“Rongsheng”), which cuts and tempers the glass products to size. Rongsheng produces the decorative panel and combines it with the clear float from Yaohua to create the complete insulated glass assembly. Rongsheng then ships the items to Novatech. You state that the imported merchandise is classified under subheading 7008.00.00, Harmonized Tariff Schedule of the United States (“HTSUS”). After importation, U.S.-origin glazing seal is added around the perimeter of each molded polypropylene frame incorporating the imported products, and the finished door inserts are produced. You state that frames are produced by Novatech. You state that the terms of sale are ex-works China. You also state that the selling agent’s fee is included in the price actually paid or payable. You indicate that Novatech is not related to any of the foreign parties to the transaction. Lastly, you state
that imported merchandise is subject to AD/CVD since it contains float glass and meets the scope of the final orders as well as the HTS found within the orders. You submitted photos of the imported product and the finished product once the work is completed in the United States and a breakdown of cost per SKU for a certain number of items. ISSUE: Whether the non-float glass products which are not subject to the AD/CVD scope orders may be deducted from the customs value of the imported decorative glass. LAW AND ANALYSIS: Merchandise imported into the United States is appraised in accordance with Section 402 of the Tariff Act of 1930, as amended by the Trade Agreements Act of 1979 (TAA; 19 U.S.C. § 1401a). The primary method of appraisement is transaction value, which is defined as the “price actually paid or payable for the merchandise when sold for exportation to the United States” plus certain statutory additions. 19 U.S.C. § 1401a(b)(1). 19 U.S.C. § 1401a(b)(3) provides that: The transaction value of imported merchandise does not include any of the following, if identified separately from the price actually paid or payable and from any cost or other item referred to in paragraph (1): (A) Any reasonable cost or charge that is incurred for— (i) the construction, erection, assembly, or maintenance of, or the technical assistance provided with respect to, the merchandise after its importation into the United States; or (ii) the transportation of the merchandise after such importation. (B) The customs duties and other Federal taxes currently payable on the imported merchandise by reason of its importation, and any Federal excise tax on, or measured by the value of, such merchandise for which vendors in the United States are ordinarily liable. 19 U.S.C. § 1401a(b)(4)(A) provides that 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 from the country of exportation to the place of importation in the United States) made, or to be made, for imported merchandise by the buyer to, or for the benefit of, the seller. 19 U.S.C. § 1401a(b)(4)(A) (emphasis added). 2
In the instant case, pursuant to the statutory definition of transaction value, the entire payment for the imported decorative insulated glass makes up the price actually paid or payable. The statutory exclusions set forth in 19 U.S.C. § 1401a(b)(4)(A) and deductions from the price actually paid or payable in 19 U.S.C. § 1401a(b)(3) do not allow for a deduction of the value of non-float glass products which are not subject to the AD/CVD scope orders from transaction value. CBP’s authority to deduct certain costs from transaction value is restricted to those items specified in the provisions of the statute. HOLDING: Based on the information submitted, the appraisement of the imported merchandise should be based on the price paid by the importer for the decorative insulated glass including the selling agent fees. Please note that 19 C.F.R. § 177.9(b)(1) provides that “[e]ach ruling letter is issued on the assumption that all of the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. The application of a ruling letter by a CBP field office to the transaction to which it is purported to relate is subject to the verification of the facts incorporated in the ruling letter, a comparison of the transaction described therein to the actual transaction, and the satisfaction of any conditions on which the ruling was based.” A copy of this ruling letter should be attached to the entry documents at the time this merchandise is entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the CBP officer handling the transaction. Sincerely, Monika R. Brenner, Chief Valuation & Special Programs Branch 3