Study Guide

The transaction value generally takes account of any discount the seller offers the buyer. Discounts are allowable because of the definition of the price actually paid or payable: if the price reflects a discount, the discount is allowed, since the discounted amount is the total payment made for the benefit of the seller of the imported goods.

Common discounts include:

01 Cash discounts	02 Trade-level discounts
03 Quantity discounts	04 Loyalty discounts

In some cases, the price of the imported goods is subject to a pricing arrangement between buyer and seller. These include, among others:

•     Price review clauses.

•     Package deals.

•     Split consignments.

Note: In any of these cases, the importer must justify the declared value on the basis of the price actually paid or payable, supported by objective and quantifiable data.