October 2020 (AM) — Question 78
Importer ABC company wishes to purchase trademarked watches from seller XYZ Limited. The price of the watches is $200 each. XYZ will not sell unless ABC pays them an additional fee of $10 per watch for the right to the trademark. This fee is:
- AA selling commission to be added to the PAPP
- BA buying commission to be deducted from the PAPP
- CA proceed of sale to be added to the PAPP
- DA royalty to be added to the PAPP✓ CBP's answer
- EAn unquantifiable addition to the PAPP, which precludes the establishment of Transaction Value
Why this answer
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CBP's cited authority
§ 19CFR§ 152.103(b)
Answer and citations as published in CBP's official answer key for the October 2020 (AM) examination.
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