I emailed the seller before I purchased, and was told that they would honor the US warranty because I bought it here.
They are located in Long Island. After the sale, They would not honor, and told me that I would have to deal directly with the manufacturer.
So to answer your question, no, I did not pay the $137. They implied that it was covered.
When I forwarded them the original emails, the would no longer communicate.
Apparently, Amazon is aware of this, because they jumped it quickly to refund the cost of the unit.
I applied that to the cost of a SB-700. Couldn't be happier.