CustomsBrokerLicenseExam

Home / Past exams / April 2026 / Question 71

April 2026, question 71

Valuation, Appraisement and Duty Assessment · Valuation

Of the following importation scenarios, which has a Transaction Value?

  1. While negotiating business and transaction terms with an intended importer, the foreign manufacturer imports 10,000 refrigerator time switches to a storage facility in an effort to beat pending tariff increases.
  2. An event operator is hosting a large public aerospace convention and is importing multiple goods from multiple manufacturers for consignment sale. The articles are not samples and will be sold to convention attendees.
  3. A foreign manufacturer sells merchandise to a related U.S. importer. The foreign seller does not sell identical merchandise or similar merchandise to any unrelated parties. The transaction between the foreign seller and the U.S. importer is determined by Customs to be unaffected by the relationship.
  4. A foreign manufacturer of industrial drones is importing promotional steel airplane models to be given to each purchaser of a drone as a thank you gift.
Show the answer and walk-through

CBP's answer: C. C: A foreign manufacturer sells merchandise to a related U.S. importer. The foreign seller does not sell identical merchandise or similar merchandise to any unrelated parties. The transaction between the foreign seller and the U.S. importer is determined by Customs to be unaffected by the relationship.

Transaction value is based on a sale for exportation to the United States, and a related-party sale still has a transaction value if the relationship did not influence the price (152.103(j)(2)(i)). In C, CBP found the sale unaffected by the relationship, so C is right. A is an importation without a sale, B is consignment merchandise to be sold later, and D is promotional gifts, none of which is a sale for exportation.

The transaction value between a related buyer and seller is acceptable if an examination of the circumstances of sale indicates that their relationship did not influence the price actually paid or payable 19 CFR 152.103(j)(2)(i)
the price actually paid or payable for the merchandise when sold for exportation to the United States 19 CFR 152.103(b)(1)

Search for: transaction value between a related buyer and seller is acceptable

CBP's key cites: 19 CFR 152.103(j)(2)(i)

Question and key from CBP's April 2026 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).