Assessable value excludes special secondary packing cost when durable returnable boxes are used only for outside clearances.

Special secondary packing costs are includable in assessable value only when the packing is ordinarily used in wholesale trade for sale at the factory gate; where the packing is durable, returnable, and used only for outside clearances, it is excluded. On the facts, the goods were cleared at the factory gate in butter paper and hardboard boxes, while dealwood boxes were used only for outside buyers. The special secondary packing therefore did not meet the inclusion test, and its cost was not includable in the assessable value.

---

---

Issues: Whether the cost of special secondary packing, namely dealwood boxes used only for clearances to outside buyers, was includable in the assessable value.

Analysis: The goods were cleared at the factory gate in butter paper and hardboard boxes, while the dealwood boxes were used only for outside clearances. Applying the test that packing cost is includable only if it is ordinarily used in wholesale trade for sale at the factory gate, and is excludable where the packing is durable and returnable, the packing in question did not satisfy the condition for inclusion.

Conclusion: The cost of the special secondary packing was not includable in the assessable value.

---