Textbook chapter 1
Move through the valuation hierarchy
Answer first
After transaction value fails, move through identical, similar, deductive, computed, and fallback methods. The importer may request computed before deductive at entry-summary filing, but may not skip identical or similar value. The statutory sequence is transaction value, identical merchandise, similar merchandise, deductive value, computed value, then a reasonably adjusted fallback. The importer may request that computed value be considered before deductive value.
Rule breakdown
Controlling rule and limits
19 U.S.C. 1401a(a); 19 CFR 152.101; 152.104–152.107 ↗The statutory sequence is transaction value, identical merchandise, similar merchandise, deductive value, computed value, then a reasonably adjusted fallback. The importer may request that computed value be considered before deductive value. The learning objective is to choose the next lawful appraisement method when transaction value cannot be determined or used.; exceptions and triggering facts must be identified before calculation or conclusion.
Authority navigation and proof
19 U.S.C. 1401a(a); 19 CFR 152.101; 152.104–152.107 ↗After transaction value fails, move through identical, similar, deductive, computed, and fallback methods. The importer may request computed before deductive at entry-summary filing, but may not skip identical or similar value. Navigate the controlling material through U.S. Code → Title 19 → §1401a(a) → methods (A) through (F); 19 CFR → Part 152 → Subpart E → basis and methods after transaction value. Record the decisive text and fact rather than relying on memory or a search snippet.
Decision path
- 1
Set the legal gate for Move through the valuation hierarchy
Choose the next lawful appraisement method when transaction value cannot be determined or used. Separate the controlling trigger from descriptive labels, then list the facts that could activate an exception or a different legal path.
- 2
Prove the rule in 19 U.S.C. 1401a(a)
Find the default sequence and the single importer election that can reverse two adjacent methods. Use this route: Start at §152.101 for the sequence, then confirm the statutory election in 19 U.S.C. 1401a(a)(2).. Preserve the exact subsection, field instruction, note, or rate line that supports the answer.
- 3
Test the boundary of Move through the valuation hierarchy
After transaction value fails, move through identical, similar, deductive, computed, and fallback methods. The importer may request computed before deductive at entry-summary filing, but may not skip identical or similar value. Apply that boundary to the stated facts, identify the fact that would reverse the result, and only then adopt the worked-example conclusion: Deductive value is considered next.
Worked example
Scenario: Transaction value and the values of identical and similar merchandise are unavailable. The importer makes no election. Which method is considered next?
- 1.Confirm that the first three methods are unavailable.
- 2.Check whether the importer elected to reverse deductive and computed value.
- 3.Because there is no election, keep the default statutory order.
- 4.Select deductive value before computed value.
- 5.Boundary check: change one decisive fact identified by this research task—Find the default sequence and the single importer election that can reverse two adjacent methods.—and explain whether the conclusion would change under 19 U.S.C. 1401a(a); 19 CFR 152.101; 152.104–152.107.
Conclusion: Deductive value is considered next.
Common traps and corrections
× Skipping directly from failed transaction value to fallback value.
✓ This shortcut fails because “Skipping directly from failed transaction value to fallback value.” skips a controlling distinction. After transaction value fails, move through identical, similar, deductive, computed, and fallback methods. The importer may request computed before deductive at entry-summary filing, but may not skip identical or similar value. Re-run the source route in Start at §152.101 for the sequence, then confirm the statutory election in 19 U.S.C. 1401a(a)(2). and state the decisive fact before selecting the result.
× Assuming computed value always precedes deductive value.
✓ This shortcut fails because “Assuming computed value always precedes deductive value.” skips a controlling distinction. After transaction value fails, move through identical, similar, deductive, computed, and fallback methods. The importer may request computed before deductive at entry-summary filing, but may not skip identical or similar value. Re-run the source route in Start at §152.101 for the sequence, then confirm the statutory election in 19 U.S.C. 1401a(a)(2). and state the decisive fact before selecting the result.
× Applying Move through the valuation hierarchy without proving both the decisive fact and the controlling source edition.
✓ After transaction value fails, move through identical, similar, deductive, computed, and fallback methods. The importer may request computed before deductive at entry-summary filing, but may not skip identical or similar value. Navigate the controlling material through U.S. Code → Title 19 → §1401a(a) → methods (A) through (F); 19 CFR → Part 152 → Subpart E → basis and methods after transaction value. Record the decisive text and fact rather than relying on memory or a search snippet. For the October 2026 CBLE, use the designated edition; for live work, separately date and verify the current source rather than blending the two lanes.
Frequently asked questions
Which fact controls first when applying Move through the valuation hierarchy?
After transaction value fails, move through identical, similar, deductive, computed, and fallback methods. The importer may request computed before deductive at entry-summary filing, but may not skip identical or similar value. Start with 19 U.S.C. 1401a(a), identify the trigger and any exception, and use the decision path before calculating or choosing a familiar label.
Where should I verify Move through the valuation hierarchy for the exam and for live work?
Use the cited exam-edition source cards for the October 2026 CBLE and preserve their pinpoint text. For a live transaction, separately re-check the current statute, eCFR, HTS, or CBP operational source listed for this chapter; a newer source does not silently rewrite the exam edition.
Official sources and editions
- 19 CFR Part 152 (2025): Title 19 CFR, 2025 Annual Edition, Part 152
October 2026 CBLE-designated 2025 Annual CFR valuation rules; current eCFR is a separate live-law check.
Last reviewed: 2026-08-19
- 19 CFR Part 24 (2025): Title 19 CFR, 2025 Annual Edition, Part 24
Exam-designated fee rules; annual MPF limits and current operational amounts require a separate live-law check.
Last reviewed: 2026-08-19
- 19 U.S.C. 1401a: Value ↗
Official current U.S. Code valuation statute; use the 2025 Annual CFR when the October 2026 exam asks a regulatory question.
Last reviewed: 2026-08-19
- 19 U.S.C. 1401a(a): U.S. Code → Title 19 → §1401a(a) → methods (A) through (F) ↗
Current legal baseline; confirm the edition designated for the exam sitting Reviewed for this textbook chapter on 2026-08-19.
Last reviewed: 2026-08-19
- 19 CFR 152.101; 152.104–152.107: 19 CFR → Part 152 → Subpart E → basis and methods after transaction value ↗
Current legal baseline; confirm the edition designated for the exam sitting Reviewed for this textbook chapter on 2026-08-19.
Last reviewed: 2026-08-19