October 2021 — Question 56

Exporter E provides the following quantity discounts on mattresses purchased by importers before their importation: • 1 to 99 mattresses - no discount • 100 to 499 mattresses - 10% discount • Over 500 mattresses - 15% discount Under the first scenario, Importer X purchases and imports 120 mattresses in a single shipment. The invoice price reflects a 10% discount. Under the second scenario, Importer Y purchases 120 mattresses in a single transaction at a price which reflects a 10% discount but imports them in four separate shipments each comprising 30 mattresses. What is the customs value of the imported mattresses under the two scenarios?

• AUnder both scenarios, the customs value is the price actually paid or payable for the imported mattresses reflecting a 10% discount.✓ CBP's answer
• BUnder the first scenario, the customs value is the price actually paid or payable for the imported mattresses reflecting a 10% discount. Under the second scenario, the customs value is the price actually paid or payable for the imported mattresses reflecting no discounts.
• CUnder both scenarios, the customs value is the price actually paid or payable for the imported mattresses reflecting no discounts.
• DUnder the first scenario, the customs value is the price actually paid or payable for the imported mattresses reflecting a 10% discount. Under the second scenario, the customs value is the price actually paid or payable for the imported mattresses reflecting a 15% discount.
• EIn both cases, the customs value is the price actually paid or payable for the imported mattresses reflecting a 15% discount.