You have a shipment of canoes to enter, from the White Rapids Co., of Edmonton, Alberta, Canada. This particular sale has been made to White Rapid’s retail outlet in Beckley, West Virginia, The Outpost. The canoes are invoiced at U.S. $500/each. A 5% variation in price is considered a “close approximation” in this industry. The only information available to consider for this related party sale is a test value from an unrelated seller of similar merchandise, to another unrelated U.S. importer for U.S. $450. That sale occurred at approximately the same time as the one before you. There were no adjustments necessary, and the basis of appraisement for the similar sale was transaction value, Sec. 402(b) at the $450 price. Based on this information, the correct value and basis of appraisement is:
A) US $450, Transaction Value of the instant shipment.
B) US $450, Transaction Value of Identical or Similar merchandise.
C) US $500, Transaction Value.
D) US $525, Value if other values cannot be determined.
E) US $475, Computed Value.
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The Answer is: B
Citation: 19 CFR 152.103(l)(2) ( i) and (ii) CfR 152.101(b)., CFR 151.101(b)(1)-(6).
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