2021 October No.57 – Value


A foreign commercial invoice reports a value of $7,200 with an addition of $800 for “distributor fee” for a total invoice of $8,000. The fee charged by the seller compensates the exclusive U.S.distributor who, by agreement with the foreign seller, receives 10% of all sales in the U.S. as acommission. The distributor receives this regardless of whether or not they actually make the sale.The $800 would be:

A. A selling commission to be added to the price actually paid or payable

B. A selling commission; part of the price actually paid or payable

C. A buying commission to be added to the price actually paid or payable

D. A buying commission; part of the price actually paid or payable

E. Not part of the transaction value

 

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The Answer is: B

Citation:19 CFR § 152.103 (b)(ii)

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