Textbook chapter 1
Build transaction value correctly
Answer first
Add only buyer packing, selling commissions, apportioned assists, qualifying royalties or license fees, and seller-accruing resale proceeds, only when not already included and supported by sufficient information. Buying commissions are not selling commissions. Add the five statutory categories only to the extent each is not already included in the price actually paid or payable and sufficient information exists: buyer packing, selling commissions, assists, qualifying royalties or license fees, and resale proceeds accruing to the seller.
Rule breakdown
Controlling rule and limits
19 CFR 152.103(b)–(e); 19 U.S.C. 1401a(b)(1) ↗Add the five statutory categories only to the extent each is not already included in the price actually paid or payable and sufficient information exists: buyer packing, selling commissions, assists, qualifying royalties or license fees, and resale proceeds accruing to the seller. The learning objective is to separate dutiable additions from excluded or already-included costs and apportion an assist.; exceptions and triggering facts must be identified before calculation or conclusion.
Authority navigation and proof
19 CFR 152.103(b)–(e); 19 U.S.C. 1401a(b)(1) ↗Add only buyer packing, selling commissions, apportioned assists, qualifying royalties or license fees, and seller-accruing resale proceeds, only when not already included and supported by sufficient information. Buying commissions are not selling commissions. Navigate the controlling material through 19 CFR → Part 152 → §152.103 → additions, assists, royalties, and proceeds; U.S. Code → Title 19 → §1401a(b)(1). Record the decisive text and fact rather than relying on memory or a search snippet.
Decision path
- 1
Set the legal gate for Build transaction value correctly
Separate dutiable additions from excluded or already-included costs and apportion an assist. Separate the controlling trigger from descriptive labels, then list the facts that could activate an exception or a different legal path.
- 2
Prove the rule in 19 CFR 152.103(b)–(e)
Locate the five additions and identify the phrase that prevents double counting. Use this route: In §152.103, begin at paragraph (b)(1), then follow the cross-references for assists, royalties, and proceeds.. Preserve the exact subsection, field instruction, note, or rate line that supports the answer.
- 3
Test the boundary of Build transaction value correctly
Add only buyer packing, selling commissions, apportioned assists, qualifying royalties or license fees, and seller-accruing resale proceeds, only when not already included and supported by sufficient information. Buying commissions are not selling commissions. Apply that boundary to the stated facts, identify the fact that would reverse the result, and only then adopt the worked-example conclusion: $20,000 is added; the separately identified buying commission is not.
Worked example
Scenario: The buyer pays $80,000 for 10,000 units, supplies a $20,000 mold free of charge for the full production run, and pays a separately stated $2,000 buying commission. What amount is added for these two items?
- 1.Classify the mold as a production assist supplied by the buyer.
- 2.Allocate the $20,000 assist over the 10,000-unit production run: $2 per unit.
- 3.Treat the separately identified buying commission as nondutiable, unlike a selling commission.
- 4.Add $20,000 for the shipment if it contains the full production run; add $0 for the buying commission.
- 5.Boundary check: change one decisive fact identified by this research task—Locate the five additions and identify the phrase that prevents double counting.—and explain whether the conclusion would change under 19 CFR 152.103(b)–(e); 19 U.S.C. 1401a(b)(1).
Conclusion: $20,000 is added; the separately identified buying commission is not.
Common traps and corrections
× Adding a buying commission as though it were a selling commission.
✓ This shortcut fails because “Adding a buying commission as though it were a selling commission.” skips a controlling distinction. Add only buyer packing, selling commissions, apportioned assists, qualifying royalties or license fees, and seller-accruing resale proceeds, only when not already included and supported by sufficient information. Buying commissions are not selling commissions. Re-run the source route in In §152.103, begin at paragraph (b)(1), then follow the cross-references for assists, royalties, and proceeds. and state the decisive fact before selecting the result.
× Adding a cost that the invoice price already includes.
✓ This shortcut fails because “Adding a cost that the invoice price already includes.” skips a controlling distinction. Add only buyer packing, selling commissions, apportioned assists, qualifying royalties or license fees, and seller-accruing resale proceeds, only when not already included and supported by sufficient information. Buying commissions are not selling commissions. Re-run the source route in In §152.103, begin at paragraph (b)(1), then follow the cross-references for assists, royalties, and proceeds. and state the decisive fact before selecting the result.
× Applying Build transaction value correctly without proving both the decisive fact and the controlling source edition.
✓ Add only buyer packing, selling commissions, apportioned assists, qualifying royalties or license fees, and seller-accruing resale proceeds, only when not already included and supported by sufficient information. Buying commissions are not selling commissions. Navigate the controlling material through 19 CFR → Part 152 → §152.103 → additions, assists, royalties, and proceeds; U.S. Code → Title 19 → §1401a(b)(1). Record the decisive text and fact rather than relying on memory or a search snippet. For the October 2026 CBLE, use the designated edition; for live work, separately date and verify the current source rather than blending the two lanes.
Frequently asked questions
Which fact controls first when applying Build transaction value correctly?
Add only buyer packing, selling commissions, apportioned assists, qualifying royalties or license fees, and seller-accruing resale proceeds, only when not already included and supported by sufficient information. Buying commissions are not selling commissions. Start with 19 CFR 152.103(b)–(e), identify the trigger and any exception, and use the decision path before calculating or choosing a familiar label.
Where should I verify Build transaction value correctly for the exam and for live work?
Use the cited exam-edition source cards for the October 2026 CBLE and preserve their pinpoint text. For a live transaction, separately re-check the current statute, eCFR, HTS, or CBP operational source listed for this chapter; a newer source does not silently rewrite the exam edition.
Official sources and editions
- 19 CFR Part 152 (2025): Title 19 CFR, 2025 Annual Edition, Part 152
October 2026 CBLE-designated 2025 Annual CFR valuation rules; current eCFR is a separate live-law check.
Last reviewed: 2026-08-19
- 19 CFR Part 24 (2025): Title 19 CFR, 2025 Annual Edition, Part 24
Exam-designated fee rules; annual MPF limits and current operational amounts require a separate live-law check.
Last reviewed: 2026-08-19
- 19 U.S.C. 1401a: Value ↗
Official current U.S. Code valuation statute; use the 2025 Annual CFR when the October 2026 exam asks a regulatory question.
Last reviewed: 2026-08-19
- 19 CFR 152.103(b)–(e): 19 CFR → Part 152 → §152.103 → additions, assists, royalties, and proceeds ↗
Current legal baseline; confirm the edition designated for the exam sitting Reviewed for this textbook chapter on 2026-08-19.
Last reviewed: 2026-08-19
- 19 U.S.C. 1401a(b)(1): U.S. Code → Title 19 → §1401a(b)(1) ↗
Current legal baseline; confirm the edition designated for the exam sitting Reviewed for this textbook chapter on 2026-08-19.
Last reviewed: 2026-08-19