Activewear Imports of Lake Buena Vista, FL buys beachwear from Wetwear in France. The first shipment is appraised on the basis of transaction value for $10,000. Unfortunately, the fabric patterns did not comply with Activewear Import’s specifications, and in order to promote the business, Wetwear agrees to provide a rebate of 25% on the first shipment, which will be applied to the payment on the next shipment. Activewear places a second order for $20,000 and pays $17,500 for the shipment. Assuming that transaction value applies, which ONE of the following contains the correct values for the two shipments?
A) $10,000 (1st); $17,000 (2nd)
B) $10,000 (1st); $20,000 (2nd)
C) 7500
D) 7500
E) $10,000 (1st); $17,500 (2nd)
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The Answer is: B
Citation: 19 CFR 152.103(a)(4)
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