CIT Electronics Corporation is a small, newly formed electronics company located in Kitchener, Ontario. The owners are young electronic game designers and this company is their first business venture. They plan to concentrate in the design and production phase of the company and hire a sales consultant, Tom Black, to market and sell their products to retail establishments. The first game is Corpo Man, and their consultant is very successful in his efforts to market and sell the product. The game is priced at $49.95. You are reviewing the invoices to Tina’s Electronic Treasures in Dunkirk, New York, to determine the correct entered value. In addition to the price of $49.95, there is a separate invoice for a 10 percent commission payable to Tom Black. Both of these invoices show Tina’s as the buyer. Which ONE of the following statements pertaining to the appraisement of this importation is correct?
A) Appraisement should be at $49.95 each. The 10 percent is a separate payment and cannot be added to the price paid or payable.
B) Appraisement should be at $49.95 each. The 10 percent represents a buying commission that cannot be added to the invoice price.
C) Appraisement should be at $49.95 each, less 10 percent.
D) Appraisement should be at $49.95 each, plus 10 percent selling commission.
E) Appraisement is not possible because this is a new product.
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The Answer is: D
Citation: 19 CFR 152.103 (b)
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