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April 2026, question 76
Valuation, Appraisement and Duty Assessment · Valuation
A U.S. buyer purchased merchandise from an unrelated manufacturer in India. The terms of the sale were ex-factory packed. The U.S. buyer paid the foreign manufacturer $18,344 which included a $1,500 packing fee. The U.S. buyer also paid $4,500 to a freight forwarder to cover expenses for inland freight of $500 and air freight of $4,000. In addition, the U.S. buyer paid a commission of $1,500 to a buying agent who facilitated the purchase of the merchandise. What is the entered value for the imported merchandise?
- $18,344.00
- $12,344.00
- $6,500.00
- $25,844.00
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CBP's answer: A. A: $18,344.00
The sale was ex-factory packed, so the price paid to the manufacturer, $18,344, already includes the $1,500 packing fee. Foreign inland freight and the international air freight were not part of that price, and under 152.103(a)(5)(i) they are not added for an ex-factory price. The buying agent's $1,500 is not a selling commission, and only selling commissions are added (152.103(b)(1)(ii)). The entered value is $18,344.00, so A is right.
If the price actually paid or payable by the buyer to the seller for the imported merchandise does not include a charge for foreign inland freight and other charges for services incident to the international shipment of merchandise (an ex-factory price), those charges will not be added to the price. 19 CFR 152.103(a)(5)(i)
Any selling commission incurred by the buyer with respect to the imported merchandise; 19 CFR 152.103(b)(1)(ii)
Search for: an ex-factory price
CBP's key cites: 19 CFR 152.103(a)(5)(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).