April 2026 CBLE · Category VI: Valuation, Appraisement and Duty Assessment · Question 78 of 80
April 2026 CBLE, question 78
Luxury Resins, a Japanese producer of plastic materials, sold resin to Phone Cases Plus, an unrelated U.S. manufacturer, for $20,000. Later, Phone Cases Plus decides to pay a $2,000 royalty to Disney for the right to manufacture and sell Disney-branded phone cases. It makes these phone cases out of the resin purchased from Luxury Resins. What is the transaction value of the transaction between Luxury Resins and Phone Cases Plus?
- $18,000.00
- $20,000.00
- $22,000.00
- $2,000.00
Show the official answer
Official answer: B: $20,000.00
Citation in CBP's key: 19 CFR 152.103(f)