May 2024 — Question 69

The U.S. importer entered into an agreement with an unrelated exporter/manufacturer for the purchase of 10,000 branded hats. The purchase contract contained the following terms: the price for the 10,000 hats is $50,000.00; the merchandise may be resold only in New York; and the buyer indicates that it will spend $5,000.00 on his own account to promote the sale of the merchandise. No selling commission, assist, royalty, or license fee is involved. Is transaction value the proper method of appraisement and, if so, what is the transaction value?

• ANo, transaction value is inapplicable because there is a restriction on the disposition or use of the merchandise (i.e., the merchandise may be resold only in New York).
• BYes, $50,000.00✓ CBP's answer
• CYes, but it is impossible to calculate the transaction value based on the information provided
• DYes, $55,000.00