Total Communications located in Blue Bell, Pennsylvania is a wholly owned subsidiary of Web Com in Montreal, Quebec. When analyzing the invoiced sale price, you may use which ONE of the following to establish the acceptability of the price?
A) WebCom sells to all non-related Canadian company at the same price as the sale to Total Communications.
B) WebCom has completed a NAFTA verification, and based on the Transaction Value Method, they have a Regional Value content of at least 60%.
C) A significantly higher test value is available, and may be adopted as the Transaction Value of the Instant Shipment.
D) WebCom’s price to Total Communications is sufficient to recover all costs, plus their annual overall company profit of 5%.
E) WebCom bases their price to Total Communications on a formula, which is a usual industry method.
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The Answer is: E
Citation: 19CFR152.103(j)(2),152.103(I0, Interpretive Note 2)
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