October 2021 — Question 58

Which of the following statements concerning customs valuation is FALSE?

• AAny rebate of, or other decrease in, the price actually paid or payable made or otherwise effected between the buyer and seller after the date of importation of the merchandise will be disregarded in determining the transaction value.
• BThe word “payable” refers to a situation in which the price has been agreed upon, but actual payment has not been made at the time of importation. Payment may be made by letters of credit or negotiable instruments and may be made directly or indirectly.
• CWhen appraising imported merchandise on the basis of the transaction value of similar merchandise, the quality of the merchandise, its reputation, and the existence of a trademark will be factors considered to determine whether merchandise is “similar”.
• DImported merchandise will be appraised on the basis of transaction value, unless transaction value cannot be determined, or can be determined but cannot be used because of the limitations provided for in 19 CFR 152.103(j).
• EIf the Center Director believes that the entered rate or value of any merchandise is too low, or if he finds that the quantity imported exceeds the entered quantity, and the estimated aggregate of the increase in duties on that entry exceeds $15, he shall promptly notify the importer on Customs Form 28.✓ CBP's answer