50. The importer, Company A, imports 1,000 batteries from an unrelated overseas seller at a price of $0.50 CIF per battery. The overseas seller buys the batteries in bulk from an overseas manufacturer. Company A requires each battery to be individually wrapped in polythene with a cardboard backing for display at retail outlets in the United States. Company A provides the polythene and cardboard backing materials free of charge to the overseas seller. Company A obtains the materials from a supplier in the United States at a cost of $40 for the quantity required to wrap 1,000 batteries. The seller of the imported batteries arranges for an overseas packing company to carry out the wrapping/packing. This company charges the seller of the imported goods, $60 per 1,000 batteries for this service. The documents show that the total overseas freight and insurance costs totaled $10. What is the customs value in the United States for a shipment of 1,000 batteries?
A. $530
B. $500
C. $600
D. $540
E. None of the above.
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The Answer is: A
Citation: $530.00 – Value of the batteries, consider the polythene and cardboard packing as provided by the importer free of charge to the manufacturer, used in the production for sale or export: CIF price = .50ยข CIF x 1,000 = $ 500.00 CIF, plus assist $40.00, the Customs Value is $540.00 CIF, FOB value (customs value in the US): $540.00 – $10.00 (freight and insurance) = $530.00 – 19 CFR 152.103(b)
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