October 2021 — Question 60

Toys for All is a U.S. importer of toys from several countries. The company approaches the broker to discuss its current valuation method. The company provides details on various items and costs that are provided to the supplier in relation to the sale of the goods to the U.S. Which of the following would NOT be considered part of the transaction value for CBP purposes?

• AU.S. origin gameboard pieces provided to the supplier free of charge to be incorporated into the finished game.
• BA U.S. origin mold that is sold to the supplier at a cost of $500. The mold, which is new, was purchased by Toys for All for $5,000 and shipped directly to the supplier for use in producing game pieces.
• CDesign work related to the games that was prepared in Italy, purchased by Toys for All and provided to the supplier free of charge.
• DDesign work related to the games, prepared in Denver, Colorado, purchased by Toys for All and provided to the supplier free of charge.✓ CBP's answer
• EMachinery that Toys for All purchases in China and ships to the supplier free of charge for use in production of the imported games.