Question 20
Domain 3: Customs ValuationAn imported product cannot be appraised under the transaction value method and Customs must move to an alternative valuation approach. Which method determines customs value by starting with the resale price in the importing country and deducting specified amounts to work backward to a customs value?
Correct answer: B
Explanation
The deductive value method determines customs value by beginning with the price at which imported goods are resold in the importing country and subtracting allowable deductions to arrive at the customs value. — cble_syllabus.txt — Deductive value method; Key Terms: deductive value method
Why each option is right or wrong
A. Computed value method, which begins with production cost elements and adds profit amounts
Computed value starts with production cost elements rather than the resale price in the importing country.
B. Deductive value method, which begins with the importing-country resale price and subtracts allowed amounts
The syllabus identifies the deductive value method as the relevant alternative valuation method. In this question, the method described starts with the resale price in the importing country and works backward by deducting specified amounts, which matches the deductive value method.
C. Transaction value method, which relies on the price actually paid or payable for the imported goods
Transaction value uses the price actually paid or payable, not a deduction from the importing-country resale price.
D. Fallback method, which automatically uses the highest available resale price in the market
Fallback method is not defined here as automatically using the highest available resale price.