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April 2024, question 73

Valuation, Appraisement and Duty Assessment · Valuation

Gemma Jones purchases 10,000 glass vases from Sklyana Vasa Company (SVC). The wholesale price charged by SVC is $3.00 per vase with the following volume discounts: Quantity Range Discount 0 – 1,000 vases Full price 1,001 – 5,000 vases 5% discount 5,001 – 15,000 vases 10% discount 15,001 – 25,000 vases 15% discount Jones receives the shipment and finds that 100 of the vases are broken. She contacts SVC who agrees not to charge her for the broken vases. What is the transaction value for the vases?

  1. $26,730.00
  2. $27,000.00
  3. $28,215.00
  4. $29,700.00
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CBP's answer: B. B: $27,000.00

For 10,000 vases the 10 percent tier applies, so the price is $2.70 a vase and $27,000. SVC's later agreement not to charge for the 100 broken vases is a decrease in price made after importation, which is disregarded in transaction value. The transaction value is $27,000 (B), not $26,730.

It may be the result of discounts, increases, or negotiations 19 CFR 152.103(a)(1)
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)

Search for: price actually paid or payable discounts

CBP's key cites: 19 CFR 152.103(a)(1)

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).