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October 2025, question 69
Valuation, Appraisement and Duty Assessment · Valuation
Which of the following is a limitation on the use of transaction value for imported merchandise?
- The buyer's price of imported merchandise is contingent on the price at which the buyer sells other merchandise to the seller of the merchandise.
- The buyer's resale and use of imported merchandise is limited geographically by law.
- The buyer and seller are related; however, that relationship does not influence the price of the imported merchandise.
- The buyer is restricted from selling imported merchandise before a fixed date.
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CBP's answer: A. A: The buyer's price of imported merchandise is contingent on the price at which the buyer sells other merchandise to the seller of the merchandise.
Section 152.103(k)(2) says transaction value is not accepted if the sale or price is subject to a condition for which a value cannot be determined, and its second interpretative note gives the example of a price dependent on the price at which the buyer sells other merchandise to the seller (A). The other choices describe acceptable situations: a geographic limit imposed by law, related parties whose relationship did not influence the price, and a restriction like a fixed pre-sale date for automobiles (152.103(k)(1)).
The price of the imported merchandise is dependent upon the price or prices at which the buyer of the merchandise sells other merchandise to the seller of the merchandise. 19 CFR 152.103(k)(2)(ii)
Search for: The price of the imported merchandise is dependent upon the price or prices at which the buyer of the merchandise sells other merchandise to the seller
CBP's key cites: 19 CFR 152.103(j); 19 CFR 152.103(k)
Question and key from CBP's October 2025 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).