April 2018 — Question 49
Seller S offers the following quantity discounts on the goods purchased by the importer prior to their importation. - 1 to 49 units - no discount - 50 to 99 units - 5% discount - Over 100 units - 10% discount In the first case, importer A purchases and imports 60 units in a single shipment. The invoice price reflects a 5% discount. In the second case, importer B purchases 60 units in a single transaction at a price which reflects a 5% discount but imports them in 3 separate shipments each comprising 20 units. What is the customs value of the imported merchandise in both cases?
- AIn both cases, the customs value is the price actually paid or payable for the imported goods reflecting a 5% discount.✓ CBP's answer
- BIn the first case, the customs value is the price actually paid or payable for the imported goods reflecting a 5% discount. In the second case, the customs value is the price actually paid or payable for the imported goods reflecting no discounts.
- CIn both cases, the customs value is the price actually paid or payable for the imported goods reflecting a 10% discount.
- DIn the first case, the customs value is the price actually paid or payable for the imported goods reflecting a 5% discount. In the second case, the customs value is the price actually paid or payable for the imported goods reflecting a 10% discount.
- EIn both cases, the customs value is the price actually paid or payable for the imported goods reflecting no discounts.
Why this answer
Under 19 CFR 152.103(a)(1), transaction value is the price actually paid or payable for the goods when sold for exportation, and a discount agreed and effected before importation is part of that price. Both importers bought 60 units in a single transaction and both genuinely paid the 5 percent quantity-discounted price, so both shipments are appraised at that discounted price. Splitting importer B's 60 units into three 20-unit shipments changes the logistics, not the sale: the price was fixed by the purchase transaction. Option B fails because it re-prices each shipment by shipped quantity, confusing shipment size with the quantity actually purchased. Watch for: Re-pricing each partial shipment by its own quantity instead of the quantity purchased in the underlying sale.
Original CBLE Simulator explanation — the question and key above are CBP's; this analysis is ours. Verify against the current edition before relying on it in practice.
CBP's cited authority
Answer and citations as published in CBP's official answer key for the April 2018 examination.
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