Understanding Constructed Export Price in International Trade Law

Definition & Meaning

The constructed export price refers to the price at which goods are first sold in the United States by or on behalf of the producer or exporter, or by an affiliated seller, to a buyer who is not affiliated with them. This price is adjusted to reflect various factors, ensuring it accurately represents the market value of the merchandise.

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Real-world examples

Here are a couple of examples of abatement:

For instance, if a company in Germany exports machinery to a U.S. distributor, the constructed export price would be the price at which the distributor sells that machinery in the U.S., adjusted for any applicable tariffs or costs. (hypothetical example)

Comparison with related terms

Term Definition Difference
Export Price The price at which goods are sold for export. Constructed export price includes adjustments and specific buyer/seller relationships.
Normal Value The price of goods in the home market. Normal value is based on domestic sales, while constructed export price is based on U.S. sales.

What to do if this term applies to you

If you are involved in importing goods into the U.S. and need to understand the constructed export price, start by reviewing your sales agreements and pricing structures. Consider using US Legal Forms' templates to assist with any necessary documentation. If the situation is complex, seeking professional legal advice may be beneficial.

Quick facts

  • Typical use: International trade and customs.
  • Jurisdiction: United States.
  • Potential adjustments: Tariffs, shipping costs, and market fluctuations.

Key takeaways

Frequently asked questions

It helps determine whether imported goods are being sold at fair market value in the U.S.