In a transaction with Chinese supplier Rose Enterprise, the U.S. importer Thorn Incorporated agreed to pay $100,000 for the sale of widgets, shipped FOB (Free On Board) Chicago. However, Rose Enterprise owed a $20,000 debt to a third party, Flower Corporation. Thorn Incorporated agreed to pay that debt and then pay $80,000 directly to Rose Enterprise. The international shipping cost was $10,000. What is the Transaction Value of the imported widgets from China?
A) 80000
B) 20000
C) 100000
D) There is no Transaction Value of the imported widgets from China because Thorn Incorporated did not directly arrange to pay the total $100,000 to Rose Enterprise.
E) 110000
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The Answer is: C
Citation: 19 CFR 152.103(a)(2), 152.102 (f)
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