Answer first
Core rule
Start with transaction value, but use it only when the limitations in 19 CFR 152.103(j) are satisfied. A related buyer and seller do not automatically disqualify the method; the question is whether the relationship influenced the price or an accepted test value supports it.
Authority and lookup route
Locate the rule before returning to the facts. Links point to government or official publications.
Reference lookup task
Find the four limitations on transaction value and the two routes for accepting a related-party price.
Route: Open §152.103 and scan the paragraph headings for “Limitations on use” and “Related buyer and seller.”
Worked example
A U.S. buyer and foreign seller are related. The price closely approximates the transaction value of similar merchandise sold to unrelated U.S. buyers. May transaction value still be used?
- 1Identify the issue as a limitation on transaction value, not an addition to price.
- 2Locate §152.103(j)(2), then the related-party validation rules in paragraphs (j) and (l).
- 3Compare the facts with the test-value route for similar merchandise sold to unrelated buyers.
- 4Conclude that relationship alone is not disqualifying; the stated test value can support acceptance.
Conclusion: Yes, assuming the approximation is established under the regulatory test-value rules.
Common traps
- Treating every related-party sale as automatically unacceptable.
- Calculating additions before confirming that transaction value is available.
- Missing a restriction or condition whose value cannot be determined.