Answer 4. $2,919 19CFR 152,103 152.103(a) Transaction value.
(a) Price actually paid or payable —(1) General. In determining transaction value, the price actually paid or payable will be considered without regard to its method of derivation. It may be the result of discounts, increases, or negotiations, or may be arrived at by the application of a formula, such as the price in effect on the date of export in the London Commodity Market.
The word ‘‘payable’’ refers to a situation in which the price has been agreed upon, but actual payment has not been made at the time of importation. Payment may be made byletters of credit or negotiable instruments and may be made directly or indirectly.
Example 1. In a transaction with foreign Company X, a U.S. firm pays Company X $10,000 for a shipment of meat products, packed ready for shipment to the United States. No selling commission, assist, royalty, or license fee is involved. Company X is not related to the U.S. purchaser and imposes no condition or limitation on the buyer. The customs value of the imported meat products is $10,000—the transaction value of the imported merchandise.
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