A U.S. television manufacturer contracts with a manufacturer in China to produce 500 bare printed circuit boards at a cost of $50 per board. The U.S. television manufacturer also contracts with a design company in New York to prepare the schematics for use in the production of the bare printed circuit boards at a cost of $20,000. Upon completion, the bare printed circuit boards are exported from China to Malaysia for further processing into printed circuit board assemblies for televisions at a cost of $200 per assembly. The completed printed circuit board assemblies are shipped to the U.S. television manufacturer and an invoice from the Malaysia manufacturer in the amount of $100,000 is included in the shipment at the time of importation. What is the transaction value of this shipment?
a) 20000
b) 100000
c) 120000
d) 125000
e) 145000
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The Answer is: D
Citation: 19 CFR 152.101, 152.102(a), 152.102(a)(iv), and 152.103(f)
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