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In Headquarters Ruling 222981 (July 1, 1991) (a copy of which is attached), the Customs Service considered a situation where the importer sought to increase the value of imported goods based on a mistake of fact in the valuation. While a revocation of this election is possible, it is granted only when there has been a mistake of fact in the underlying transaction; a mistake in value (or decline in value) of the property involved will not be enough. A taxpayer might be required to make restorative payments under a number of circumstances, including a mistake of fact, contractual indemnification clause or determination by a regulatory body. |
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