Hot Springs Hospital imported a new piece of advanced medical equipment, which was heavily advertised by the seller on behalf of the buyer in numerous U.S. medical journals. The invoice price for this shipment is $500,000, which includes a charge for assembly after importation that is not separately listed. A $5,000 charge for a one-year maintenance contract is separately listed on the invoice. The terms of the sale are ex-factory and transaction value is the correct basis of appraisement for this shipment. Which ONE of the following is excluded from transaction value for this shipment?
A) U.S. advertising costs paid for by the seller
B) Assembly charge
C) Cost of the one-year maintenance contract
D) Insurance, separately paid by Hot Springs Hospital
E) Foreign inland freight paid by Hot Springs Hospital
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The Answer is: C
Citation: 19 CFR 152.103 (i)(1)(i)
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