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October 2026, question 78

Valuation, Appraisement and Duty Assessment · Valuation

A producer sells copper concentrate to a related buyer. The parties’ sales contract states that the price will be determined by the published market price for copper concentrate on the date of delivery. Neither party can control the published market price. Which statement best describes whether transaction value may be used?

  1. Transaction value is automatically unacceptable because the buyer and producer are related persons.
  2. Transaction value may be acceptable if the relationship between the buyer and producer did not influence the price actually paid or payable.
  3. Transaction value is unacceptable because any formula-based price is a condition or consideration that prevents valuation.
  4. Transaction value must be replaced by a test value, which becomes the transaction value of the material.
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CBP's answer: B. B: Transaction value may be acceptable if the relationship between the buyer and producer did not influence the price actually paid or payable.

Transaction value between a related buyer and seller is acceptable if the circumstances of sale show the relationship did not influence the price (152.103(j)(2)(i)). Relatedness alone does not make transaction value unacceptable, and a price set by a published market formula that neither party controls is not a disqualifying condition. So B is right. A and C are wrong for those reasons, and a test value (D) is only a way to show the price was not influenced, not a replacement.

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)

Search for: relationship did not influence the price actually paid or payable

CBP's key cites: 19 CFR 152.103(j)(1)(iv); 19 CFR 152.103(j)(2)

Question and key from CBP's October 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).