- -14
Invoice Purchase Duty
date price Charge Rate
3/19/88 $44,800 $11,816.04 26.38%
4/02/88 33,232 5,150.81 15.50
4/30/88 52,987 7,510.20 14.17
Total 131,019 24,477.01 18.68
The 3 invoices that list only "Mens T/R/C jeans" show an average
customs duty rate of 18.68 percent. The sole invoice that listed
only boy's T/R/C jeans, invoice dated June 25, 1988, shows a
customs duty rate of 17.87 percent. For those items that cannot
be matched with duty charges, we hold that the rate for men's
T/R/C jeans is 18.68 percent, and the rate for boy's T/R/C jeans
is 17.87 percent. For the remaining invoices, including invoices
with multiple garments, we hold that the appropriate duty rate is
17 percent, based on approximations from various invoices. See
Cohan v. Commissioner, 39 F.2d 540 (2d Cir. 1930).
Based on the calculations for both documented sales and
deemed sales, we hold that petitioner is entitled to a customs
duty rate of 17 percent for imputed sales.
Respondent maintains that petitioner is entitled to no
inclusion as part of cost of goods sold or deductions for customs
duties and charges with respect to badges. Respondent contends
that there is no evidence in the record to indicate that
petitioner incurred any customs duties whatsoever for its badge
sales, relying primarily on the testimony of Mr. Lee that some
items were "duty free". Petitioner relies on one invoice
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