Your client is importing a used aircraft engine manufactured in England from a Canadian shipper. Your client has accepted the aircraft engine on consignment and has promised to find a US buyer for the engine. Your client will receive a commission on the sale of 5%. The asking price for the engine is $90,000. The shipper paid all of the transportation costs ($1,000) from its dock to your client’s dock on a through bill of lading. What is the entered value of the used aircraft engine?
A) Under transaction value, the entered value of the aircraft engine is the asking price of 90000
B) Under transaction value, the dutiable value of the aircraft engine is the asking price of $90,000, minus the $1,000 transportation cost, plus the sales commission due the importer of $4,500 ($90,000×5%), or $93,500.
C) Under transaction value, the entered value of the aircraft engine is the asking price of $90,000, plus the $1,000 transportation cost, plus the sales commission due the importer of $4,500 ($90,000 x 5%), or $95,500.
D) Under transaction value, the entered value of the aircraft engine is the asking price of $90,000, minus the $1,000 transportation cost, minus the sales commission due the importer of $4,500 ($90,000 x 5%), or $84,500.
E) Because transaction value cannot be used on a consignment shipment, the entered value of the aircraft engine cannot be determined under transaction value and one of the other bases of appraisement must be applied.
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The Answer is: E
Citation: 19 CFR 152.103
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