A foreign commercial invoice reports a value of $7200 with an addition of $800 for “distributor fee”, or a total invoice value of $8000. The nature of the fee charged by the seller was to compensate the exclusive U.S. distributor who, by agreement with the foreign seller, receives 10% of all sales in the U.S. as a commission. The distributor receives this regardless of whether or not they actually make the sale. The $800 would be:
A. Not part of Transaction Value.
B. A buying commission to be added to the price actually paid or payable.
C. A buying commission; part of the price actually paid or payable.
D. A selling commission to be added to the price actually paid or payable.
E. A selling commission; part of the price actually paid or payable.
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The Answer is: D & E
Citation: 19CFR152.103(b)(ii)
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