What is the transaction value of the shipment in the following scenario? A U.S. business located in Duluth, Minnesota contracts with a manufacturer in Korea to produce 100 electric motors at a cost of $10 per motor. The U.S. business also contracts with a design company in New York to prepare the schematics for use in the production of the motors at a cost of $5,000. Upon completion, the motors are exported from Korea to China and used in the manufacture of household vacuum cleaners at a cost of $100 per vacuum cleaner. The completed vacuum cleaners are shipped to the U.S. business and an invoice from the China manufacturer in the amount of $10,000 is included in the shipment at the time of importation.
A. $1,000
B. $5000
C. $10000
D. $11,000
E. $15000
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The Answer is: D
Citation: 19 CFR 152.101, 19 CFR 152.102(a) and 19 CFR 152.102(a)(iv)
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