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Is transaction value usable when resale is limited to New York and the buyer pays its own advertising?

May 2024 examValuation, Appraisement and Duty AssessmentQuestion 69 of 80

The U.S. importer entered into an agreement with an unrelated exporter/manufacturer for the purchase of 10,000 branded hats. The purchase contract contained the following terms: the price for the 10,000 hats is $50,000.00; the merchandise may be resold only in New York; and the buyer indicates that it will spend $5,000.00 on his own account to promote the sale of the merchandise. No selling commission, assist, royalty, or license fee is involved. Is transaction value the proper method of appraisement and, if so, what is the transaction value?

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CBP answer key: Answer B · 19 CFR 152.103(a)(2)Source: CBP past exams ↗