Of the following importation scenarios, which has a Transaction Value?
How to get there
Transaction value needs a sale for exportation to the United States. Then, if the parties are related, the price must not be influenced by the relationship:
19 CFR 152.103(j)(2)(i): Related person transactionsThe transaction value between a related buyer and seller is acceptable if an examination of the circumstances of sale indicates that their relationship did not influence the price actually paid or payable, or if the transaction value … closely approximates [certain test values].
In C, there's a sale, and Customs found it unaffected by the relationship. That's enough for transaction value under the circumstances-of-sale test. It doesn't matter that there are no sales of identical or similar goods to compare against, because those comparisons are the alternative test. The answer is C.
Why the other choices are wrong
A) Manufacturer ships to its own storage while still negotiating: no sale has happened, so there's no price actually paid or payable.
B) Goods imported for consignment sale at a convention: consignment means no sale at the time of exportation to the U.S.
D) Free promotional models for drone buyers: gifts given away free aren't sold, so they have no transaction value of their own. They'd be appraised under another method.
Tip
No sale, no transaction value. Watch for consignments, free goods, leases and shipments to the seller's own warehouse. For related parties, either the circumstances-of-sale test or the test values (identical or similar goods to unrelated buyers) can support transaction value. Only one is needed.
Source: 19 CFR 152.103(j)(1)–(2) (eCFR).
CBP answer key: Answer C · 19 CFR 152.103(j)(2)(i)Source: CBP past exams ↗