Hyundai USA imports a purchase of 2,500 brand new 2014 Elantras invoiced at $40,000 each, ex-factory, from its affiliated parent company, Hyundai South Korea. Hyundai South Korea normally charges an additional $200 per Elantra. However, Hyundai South Korea owed Hyundai USA $250,000 which was paid on a previous shipment and have deducted this from the invoice price. The related party transaction does not influence the price paid to the parent company. The seller requires the buyer not to sell or exhibit the merchandise before the model year. Invoice values are also listed in the following amounts: ocean freight $2,000, and marine insurance $1,850. What is the transaction value of the merchandise?
A. 76150000
B. 80000000
C. 96150000
D. 100550000
E. 100800000
[bg_collapse view=”button-green” color=”#4a4949″ icon=”arrow” expand_text=”Show Answer and Citation” collapse_text=”Hide Answer and Citation” ]
The Answer is: D
Citation: 19 CFR 152.103(a)(5), 19 CFR 152.103(j)(1)(i), 19 CFR 152.103
(j)(1)(iv), 19 CFR 152.103 (k)(1)(i)
[/bg_collapse]