April 2023 — Question 38

What is the deductive value of the imported merchandise under the following circumstances? A foreign shipper sells 1000 leather attaché cases to a related U.S. importer classified under 4202.11.0030 / 8%. The foreign shipper does not sell to any unrelated persons. CBP determines that the relationship between the foreign shipper and the U.S. importer influences the price. There is no identical or similar merchandise from the same country of production. The U.S. importer sells the attaché cases in their imported state to three domestic buyers approximately one month after importation. The first buyer purchases 350 cases for $200.00 each. The second purchaser gets an even better deal, 400 cases for $180.00 each. The third buyer snaps up the remaining 250 cases for $150.00 each. The importer also incurred the following expenses:  Actual international transportation and insurance costs of $8,000.00.  Domestic transportation costs of $2,000.00.  Customs duties totaling $4,000.00.  In addition, the importer realized profits and general expenses of $40.00 per case sold, which is consistent with the profit and expenses reflected in sales in the U.S. of merchandise of the same class or kind from all countries.

• A$42,000.00
• B$50,000.00
• C$122,670.00
• D$126,000.00✓ CBP's answer
• E$146,000.00