Study Guide

An addition to the price actually paid or payable is made for the value of any part of the proceeds of a subsequent resale, disposal, or use of the imported goods that accrues, directly or indirectly, to the seller.

Proceeds are added when they are…
✓       Paid by the buyer to the seller ✓       Based on the resale, disposal or use of the imported goods

Proceeds differ from royalties in one key way: proceeds must be paid by the buyer to the seller.