A Swiss manufacturer produces 1000 gadgets at a total cost of $6000 ($6.00 per piece). A Canadian distributor then buys the entire lot for a total price of $9000 ($9.00 per piece), and has it shipped from Geneva to his warehouse in Toronto. The Canadian distributor cannot find any buyers for the goods, which end up sitting in his warehouse for over three years, thereby becoming slightly outmoded. Eventually, he manages to locate a U.S. customer who negotiates with him and finally agrees to purchase half the lot (500 pieces) at a total price of $4000 ($8.00 per piece). The U.S. customer then imports the 500 pieces, having them delivered to his premises in Chicago. There is no relationship between any of the parties mentioned, and all business is conducted at arm’s length. What is the appraised value of the merchandise imported into the United States?
A) 4500
B) 3000
C) 4000
D) 6000
E) 9000
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The Answer is: C
Citation: 19 CFR 152.23, 152.101,152.103
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