April 2022 — Question 58
In a transaction with Chinese supplier Rose LLC, U.S. importer Thorn Inc. agreed to pay $100,000.00 for the sale of widgets, shipped Free on Board (FOB) Chicago. However, Rose LLC owed a $20,000.00 debt to a third party, Flower Corporation. Thorn Inc. agreed to pay that debt and then pay $80,000.00 directly to Rose LLC. The international shipping cost was $10,000.00. What is the transaction value of the imported widgets from China?
- A$80,000.00
- B$20,000.00
- C$100,000.00✓ CBP's answer
- DThere is no transaction value of the imported widgets from China because Thorn Inc. did not directly arrange to pay the total $100,000.00 to Rose LLC.
- E$110,000.00
CBP's cited authority
§ 19 CFR 152.103(a)(2) 19 CFR 152.102(f)
Answer and citations as published in CBP's official answer key for the April 2022 examination.
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