Dear Patcharee san,
We have received additional question and request from our consultant follows.
As we found a good number of cases that may be eligible for GSP, we would like to request further support from DIT.
We very much appreciate all the works and supports you have done so far.
We would like to receive the answers to those questions and documents by the end of the month December 2016.
Please advise if how long it would take for you to process them all.
Regarding the detailed cost breakdown for each of the 60 requested sample items, we have reviewed the cost summary information and it appears, based on the provided Local Ratio,
that 29 of the items may be supportable. However, we have noticed that the calculation used for the Local Ratio for the 60 items is different than
the Local Ratio calculation previously provided to support the CBP Audit request. Based on this change, we have a the following follow-up questions:
1) The previously provided calculations for the CBP Audit only included Local Parts and Direct Cost values in the Local Ratio. Please explain why DIT included the amounts for Indirect Costs, Royalty, Transportation, and SGA Cost in the Local Ratio calculations for the 60 sample items.
2) The sum of all of the costs provided (Import Parts, Local Parts, Direct Cost, Indirect Cost, Royalty, Transportation, and SGA Costs) is less than the DIL price. Please provide an explanation of the what accounts for the difference between the sum of the provided costs and the DIL price. For example, is the difference the amount of profit and if so, is this DIT profit, DIL profit, or both DIT & DIL profit.
3) Is there a royalty agreement that supports the royalty costs? If so, please provide a copy. If not, please provide more information such as who is the royalty paid to and what is the royalty related to.
4) Please provide more information on what the Transportation costs represents.
In addition to the clarifying questions above, the attached spreadsheet identifies the 29 invoice/models that potentially qualify for GSP based on the provided Local Ratios. For each of the 29 invoice/models listed in the attached file, Goodman Statistical Sample – GSP Request 2, please provide the following:
1) GSP Declaration
2) Costed Bill of Materials.
Once we receive the above information we will be able to compile a detailed list of the additional types of information that will be needed to complete the review. Thank you again for your help, and please let us know if you have any questions.