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