AMERICAN EMBASS: Brussels, Belgium. INSTRUCTIONS Statutory FOR INQUIRIES COST OF IN CONNECTION WIT! PRODUCTION Provisions In all instances where "the appraiser determines that neither the foreign value, the export value, nor the United States value can be satisfactorily ascertained," the cost of production must section 402 (f), Chanter I; in this Tariff Meaning of be resorted Tariff for Cost Production of The term "cost and authorities turing overhead up ready for shipment since section it, and since terpreted to i.e., provisions 3 and of &h; text. of production” of an article, the See pages manual, facturers cost to under Act of 1930. is understood on accounting the cost to by manu- mean including the all factory manufac- . to or the point where the article is either ready to be placed in stock. However, 402 (f) provides for the term "usual general include all the usual an addition to expenses" expenses cover has prof- been pertaining in- not only to the creation but also to the storage, sale and distribution of the merchandise, the statutory definition of cost of production does not cover only the cost of producing an article but is in effect a provision for upon cost. TD 48860 Dept. The courts have the determination of the cost of production a value based ruled that is an effort to arrive value at structive a substitute foreign for market a foreign value. market TD 46378 GCPA3 or @ con 48900 CCPA. When it is determined by the appraising officer that information as to the statutory cost of production is necessary for the appraisement of merchandise, the importer is notified by the appraiser, and thereafter invoices cover-— ing shipments of such merchandise must contain a verified statement by the manufacturer or producer detailing the osts provided for in section 402 (f), Tariff Act of 1930, and section 8&.13(f), Customs Regulations of 1943. Such statements must be made upon consular Form 171, as provided for by section XV-1, note 385; of the Foreign Service Regula- tions (B/L No.311, May 20, 1943, and CI# 261/43) /The officer...