Which of the following costs should NOT be added to the price actually paid or payable to determine the transaction value for an entry of handmade leather bags? (2025 October No.72 – Valuation, Appraisement and Duty Assessment)
A) The leather provided free of charge by the U.S. buyer to Italian designers who will make the bag
B) The royalty fees the U.S. buyer is required to pay as a condition of the sale
C) The shipping costs paid by the U.S. buyer to import the bags
D) The amount of debt the U.S. buyers relieve for the Italian designers in exchange for the shipment of the bags
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The Answer is: C
Citation: 19 CFR 152.103(b)(1); 19 CFR 152.102(f)
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