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April 2024, question 19

Practical Exercise · Valuation

Refer to the Commercial Invoice. How will the rebate offered by Stampa Fabbrica, the seller, to Baltimore Quick Printers, the buyer, affect transaction value?

  1. The rebate will not be added to or subtracted from the price paid or payable as it will be paid to the buyer after the buyer pays the seller's invoice.
  2. The rebate will be added to the price paid or payable as it is paid to the buyer by the seller after the buyer pays the seller's invoice.
  3. The rebate will be deducted from the price paid or payable because the receipt by the buyer of the rebate after importation of the press is disregarded.
  4. The rebate will be deducted from the price paid or payable because the rebate was negotiated before the date of importation.
Page from CBP's April 2024 exam booklet for question 19
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CBP's answer: A. A: The rebate will not be added to or subtracted from the price paid or payable as it will be paid to the buyer after the buyer pays the seller's invoice.

A rebate or other decrease in the price made between buyer and seller after the date of importation is disregarded in transaction value. So the price paid or payable is neither increased nor reduced by the rebate (A).

Any rebate of, or other decrease in, the price actually paid or payable made or otherwise effected between the buyer and seller after the date of importation of the merchandise will be disregarded 19 CFR 152.103(a)(4)

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CBP's key cites: 19 CFR 152.103(a)(4)

Question and key from CBP's April 2024 exam and answer key. The walk-through is ours; quotes are from the pinned editions in the reference viewer (HTSUS 2026 Basic, 19 CFR 2025 edition).