A foreign subsidiary sells ore to its U.S. parent company. The price of the ore charged by the subsidiary to its parent is the price of ore on the New York Mercantile Exchange on the date the ore arrives in the United States. Select the statement that is TRUE regarding this price.
A. The price is acceptable under transaction value as it is based upon a formula which neither party can control.
B. The price is not acceptable because it is not known at the time of shipment.
C. The price is not acceptable because the parties are related.
D. The price is acceptable under deductive value because it is based on the price of ore sold in the United States.
E. The price is acceptable because the parties are related.
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The Answer is: A
Citation: 19 CFR ยง 152.103(a)(1)
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