Mr. John V. Browning the totel output. selling prices of March In the the 1953 Hence, they usually become a part all units of the total output which duced during the expense period the sale of all such units. ing and covered 3, case of a new and of the were pro- are usually recovered product, however, whose from design- development involved an expense. which can not be reby the manufacturer from the sale of its output during period in which such expense was I believe, to charge such expense which the manufacturer expects to incurred, it is customary, to each such new product | make and sell during a period which will permit the recovery of such expense. in other words, that kind of expense becomes a part of the selling prices of future output of the new product and is recovered from future sales thereof. Certainly, cost of production made by the the sale of the not chargeable lot of the manufacturer, unless it is fully first lot. Nor amount would pay duty dutiable value The is it new than is properly in full product to the which is recoverable properly any greater amount than to amount is recoverable from Incidentally, if that dutiable value of the 11 greater is first the first lot in less the greater first Lot. in it the the of from chargeable any the kind of expense were included sample guns in question in any chargeable to them, your company again on that of its future excess amount, as a part of importations of such guns. third of element to later lot, unsale of the statutory "cost of the production" is the cost of all containers and coverings and all other costs, charges and expenses incident to placing the merchandise in condition packed ready for shipment to the United States. As applied to the il sample of labor in packing them the cost of the guns in question, this means the cost for shipment to the United States plus containers and coverings in which packed. they were so : The fourth element of statutory "cost of production" is an "addition for profit" above the sum of its first and second elements. That addition must be not less than 5% of the total of those two elements and must be equal (in percentage of that total) to the profit which is ordinarily added to like elements of the cost of production general character by manufacturers merchandise in question is made. same term of merchandise of the same in the country where the The term "merchandise of general character", as thus used, "such or similar merchandise", as the is much broader than the employed in items 1 and 2