Refer to the Commercial Invoice. How will the rebate offered by Stampa Fabbrica, the seller, to Baltimore Quick Printers, the buyer, affect transaction value?
How to get there
19 CFR 152.103(a)(4): RebateAny rebate of, or other decrease in, the price actually paid or payable made or otherwise effected between the buyer and seller after the date of importation of the merchandise will be disregarded in determining the transaction value …
From the facts: importation was January 17, 2024, BQ Printers paid on January 19, and Stampa issued the rebate on January 29. The invoice note says it will be wired 10 days after payment. Because the rebate came after importation, it is ignored. The price paid or payable for the press stays at $60,000. The answer is A.
Note
The choice's "because" clause (paid after the buyer pays the invoice) isn't quite the legal trigger. What matters under § 152.103(a)(4) is that the rebate was effected after importation. A is still the only choice with the right result.
Why the other choices are wrong
B) Added to the price: a rebate lowers the price. It is never an addition, and the § 152.103(b) additions list doesn't include rebates.
C) Deducted because receipt after importation is disregarded: contradicts itself. Something "disregarded" can't also be deducted.
D) Deducted because negotiated before importation: the test is when the decrease is made or effected, not when it was negotiated, and here it was effected after importation.
Tip
Also on this invoice: the $94,200 C.I.F. total includes $34,200 of freight and insurance. Those international charges are excluded from transaction value, which leaves $60,000.
Sources: 19 CFR 152.103(a)(4), (b) (eCFR); exam exhibits pp. 9, 12.
CBP answer key: Answer A · 19 CFR 152.103(a)(4)Source: CBP past exams ↗