October 2021 — Question 57
A foreign commercial invoice reports a value of $7,200 with an addition of $800 for “distributor fee” for a total invoice of $8,000. The fee charged by the seller compensates the exclusive U.S. distributor who, by agreement with the foreign seller, receives 10% of all sales in the U.S. as a commission. The distributor receives this regardless of whether or not they actually make the sale. The $800 would be:
- AA selling commission to be added to the price actually paid or payable
- BA selling commission; part of the price actually paid or payable✓ CBP's answer
- CA buying commission to be added to the price actually paid or payable
- DA buying commission; part of the price actually paid or payable
- ENot part of the transaction value
Why this answer
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CBP's cited authority
Answer and citations as published in CBP's official answer key for the October 2021 examination.
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