October 2024 — Question 77
Which of the following costs should not be added to the price actually paid or payable to determine the transaction value for an entry of luxury watches?
- AThe watch face and band pattern designed in Switzerland, which is provided free of charge by the U.S. buyer to the foreign manufacturer.
- BThe royalty fees related to the luxury watches which the U.S. buyer is required to pay as a condition of the sale.
- CThe cost of several milling machines provided free of charge by the U.S. buyer/importer to the foreign manufacturer/exporter to cut and shape parts such as gears.
- DThe shipping costs paid by the U.S. buyer to import the luxury watches.✓ CBP's answer
CBP's cited authority
§ 19 CFR 152.103(b)(1)§ 19 CFR 152.102(a)§ 19 CFR 152.103(d)
Answer and citations as published in CBP's official answer key for the October 2024 examination.
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