BMW USA imports a purchase of 2,500 brand new 2013 X5s invoiced at $40,000 each, ex- factory, from its affiliated parent company, BMW of Germany. BMW of Germany normally charges an additional $100 each for the X5s, however, they owed BMW USA $250,000 which was paid on a previous shipment and have deducted this from the invoice price. The related party transaction does not influence the price paid to the parent company. The seller requires the buyer not to sell or exhibit the merchandise before the model year. Invoice values are also listed in the following amounts: ocean freight $2,000, and marine insurance $1,850. What is the transaction value of the merchandise?
A. $76,150,000
B. 80000000
C. 96150000
D. $100,250,000
E. 100500000
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The Answer is: D
Citation: 19 CFR 152.103(a)(5), 152.103(j)(1)(i), 152.103 (j)(1)(iv), and 152.103 (k)(1)(i)
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