Superdeductive

Summary of Superdeductive

A procedure authorized by U.S. Customs in ascertaining the deductive value of merchandise for assessment of ad valorem duties; deductive valuation is an alternative valuation method specified in the customs valuation agreement (read this and related legal terms for further details). Also known as the further processing method, the superdeductive method permits a deduction from the value of the goods for duty purposes of further processing undertaken in the United States prior to sale to the ultimate purchaser. In applying the deduction, customs will take into account normal processing costs, reasonable waste, and industry practice. The superdeductive can be applied to goods not sold within 90 days from importation but within 180 days of importation. Normally the superdeductive will not apply if the further processing destroys the identity of the goods as imported.

(Main Author: William J. Miller)

Superdeductive and the GATT Policy Negotiations

In relation to the GATT Policy Negotiations, Christopher Mark (1993) provided the following explanation and/or definition of Superdeductive: A customs valuation procedure (also known as the “further processing method”) that permits a deduction from the value of imported merchandise to allow for further processing to be undertaken in the importing country prior to final sale. Under US Customs regulations, the super deductive can be applied to goods sold between 90 and 180 days of importation, but may not be applied if the processing destroys the identity of the product as imported. See also deductive value.