Additional information necessary to answer this question is provided in the commercial invoice. As per the commercial invoice provided with this question, the goods are valued at $3,900 and the terms of payment are 2%, Net 15 Days, which means that a 2% discount is offered post import if the payment is made within 15 days of delivery.
As per 19 CFR 152.103(a)(4), any rebate of, or other decrease in, the price actually paid or payable made or otherwise effected between the buyer and seller after the date of importation of the merchandise will be disregarded in determining the transaction value under ยง 152.103(b).
On July 17, 2004, Mr. Thorton Mellon notifies his broker that he has just forwarded Fashion the World, Inc., money for the shipment minus an early payment discount. On July 18, 2004, at 12:01 a.m. the aircraft arrives at Seattle with the intent to unlade.
Here, the importer has availed of the rebate or discount prior to the date of import and so this discount will not be disregarded in determining the transaction value. The discount is availed of and the price is paid prior to import not after the date of importation.
3900 – 2% = 3900 – (3900×2/100) = 3900 – 78 = $3,822 which is answer choice B.
