October 2019 — Question 48

All of the following are provided directly and free of charge by the U.S. buyer of imported merchandise for use in connection with the production or sale for export to the United States of high-end bathroom cabinets. What cost do you advise the U.S. buyer NOT to include in the transaction value of the bathroom cabinets?

• AAdvertising space on social media purchased by the U.S. buyer for the Chinese manufacturer to post prices and photos of the completed bathroom cabinets✓ CBP's answer
• BMetal hinges purchased by the U.S. buyer and sent to the Chinese manufacturer for incorporation into the cabinets
• CA custom-made circular saw purchased by the U.S. buyer and sent to the Chinese manufacturer for precision cutting of the cabinet doors
• DLuxury high-gloss paint purchased by the U.S. buyer and sent to the Chinese manufacturer to paint the cabinets
• EA schematic drawing made in Ireland and provided by the U.S. buyer to the Chinese manufacturer for the cabinets’ unique top made out of weathered, reclaimed wood