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October 2025, question 72
Valuation, Appraisement and Duty Assessment · Valuation
Which of the following costs should NOT be added to the price actually paid or payable to determine the transaction value for an entry of handmade leather bags?
- The leather provided free of charge by the U.S. buyer to Italian designers who will make the bag
- The royalty fees the U.S. buyer is required to pay as a condition of the sale
- The shipping costs paid by the U.S. buyer to import the bags
- The amount of debt the U.S. buyers relieve for the Italian designers in exchange for the shipment of the bags
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CBP's answer: C. C: The shipping costs paid by the U.S. buyer to import the bags
The price actually paid or payable excludes international transportation and insurance (152.102(f)), so the buyer's shipping cost is not added (C). Assists such as the leather supplied free, required royalties and indirect payments such as relief of the sellers' debt (152.103(a)(2)) are part of or added to the value under 152.103(b)(1)(iii) and (iv).
exclusive of any charges, costs, or expenses incurred for transportation, insurance, and related services incident to the international shipment of the merchandise 19 CFR 152.102(f)
Any royalty or license fee related to the imported merchandise that the buyer is required to pay, directly or indirectly, as a condition of the sale 19 CFR 152.103(b)(1)(iv)
Search for: exclusive of any charges, costs, or expenses incurred for transportation, insurance
CBP's key cites: 19 CFR 152.103(b)(1); 19 CFR 152.102(f)
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).