CBLE Valuation & Appraisement question: Korean seller invoices an unrelated US buyer

CBLEValuation & Appraisement

A Korean seller invoices an unrelated US buyer $52,000.00 CIF Los Angeles, itemizing ocean freight of $3,500.00 and insurance of $500.00. The buyer also pays $800.00 for export cartons the seller does not include in the price and a $1,200.00 selling commission to the seller's agent. What is the transaction value?

A $48,000.00
B $50,000.00
C $52,000.00
D $54,000.00

Show the answer and explanation

Answer: B. $50,000.00

Transaction value is the price actually paid or payable, which excludes international freight, insurance and related services (19 CFR 152.102(f)), plus additions not already in the price (152.103(b)(1)): packing costs incurred by the buyer and selling commissions incurred by the buyer. $52,000 - $3,500 - $500 = $48,000; + $800 packing + $1,200 selling commission = $50,000.00. $48,000 forgets the additions; $54,000 adds them without removing freight and insurance. Source: 19 CFR 152.102(e)-(f), 152.103(b)(1)(i)-(ii) (eCFR, as at 7 Oct 2026).

Common mistake

Leaving the itemized international freight and insurance in the value.

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Original study material mapped to the public CBP exam categories; not a real test question.Independent. Not affiliated with or endorsed by U.S. Customs and Border Protection (CBP). Verify figures and rules against current guidance before relying on them.