Duties, Fees and Refunds: practice questions

1.What type of duties, taxes and fees are NOT allowed to be claimed for drawback?

2.John Brown imported eight ball bearings with integral shafts from Germany, which are classified under subheading 8482.10.10, HTSUS, at a 2.4% ad valorem duty rate and subject to antidumping duties. The ball bearings are shipped by air and formally entered at John F. Kennedy International Airport. The total value of the shipment is $8,605. The applicable antidumping duty case deposit rate is 57.36%. What is the total amount of fees and estimated duties that should be reported on the CBP Form 7501?

3.A Notice of Intent to Export, Destroy, or Return Merchandise for Purposes of Drawback on CBP Form 7553 for merchandise that is going to be destroyed, shall be filed by the claimant with the CBP port where the destruction is to take place at least _______ working days prior to the date of intended destruction.

4.All records which pertain to the filing of a drawback claim or to the information contained in the records in connection with the filing of a drawback claim must be retained for ____ after liquidation of such claims or longer period if required by law.

5.WeHeartGoats, Inc. (WeHeartGoats), a goat soap manufacturer and exporter, imports burlap, sewing thread, and string in bulk from which WeHeartGoats makes burlap drawstring bags that hold individual bars of soap. WeHeartGoats sews its own drawstring bags from the imported bulk burlap and string. The soap is made using goat milk and other ingredients. None of the ingredients to create the soap are imported. Because the burlap bags breathe, they are better packaging than paper or plastic for the soap bars. WeHeartGoats intends to claim drawback on the burlap and string that it manufactures into the drawstring bags upon the exportation of the soap-filled bags. Which the following statements is TRUE?

6.Evidence of exportation or destruction is required for a complete drawback claim. Which of the following supporting documentation will be a sufficient official postal record to prove exportation of merchandise on which drawback is to be claimed, if exported using the U.S. Postal Service (USPS) First-Class Package International Service?

7.Brown Industries imported a shipment of taper roller bearings manufactured by Beijing Bearings in Shenzhen, China. The taper roller bearings are exported by Seoul Enterprise, a company incorporated in South Korea, and are used in various automotive engine parts. Taper roller bearings are specifically classified under 8482.20.00. The Department of Commerce has instructed U.S. Customs and Border Protection to collect antidumping duty cash deposits at a rate of 115% for all shipments of taper roller bearings manufactured by Beijing Bearings. The Department of Commerce has further instructed U.S. Customs and Border Protection to apply the “country-wide rate” of 45% for all shipments of taper roller bearings manufactured by Chinese companies with no established individual cash deposit rates. Further, the scope of the order excludes taper roller bearings used in the manufacture of exercise equipment and home appliances. What is the antidumping duty cash deposit collected for Brown Industries’ shipment of taper roller bearings?

8.For imported merchandise designated on a TFTEA drawback claim, the _____ is NOT required to be provided on the drawback entry.

9.What is an anti-dumping and/or countervailing duty (AD/CVD) suspension agreement?

10.Company A imported seven ball bearings with integral shafts from Germany, which are classified under subheading 8482.10.1080, Harmonized Tariff Schedule of the United States, at a 2.4 percent ad valorem duty rate and are subject to antidumping duties. The ball bearings are shipped by air and formally entered at John F. Kennedy International Airport. The total value of the shipment is $5,798.00. The applicable antidumping duty cash deposit rate is 68.89 percent. What are the total amount of fees and estimated duties that should be reported on CBP Form 7501?

11.What duties and fees are NOT subject to drawback?

12.When can a claimant amend an unliquidated drawback claim?

13.CBP has reasonable suspicion that the importer entered covered merchandise, merchandise that is subject to an AD/CVD order, into the customs territory of the U.S. through evasion. The following are measures CBP can take EXCEPT:

14.Which of the following is NOT an "interested party" as defined in the Customs Regulations relating to a CBP investigation under the Enforce and Protect Act of 2015 (EAPA) into the evasion of anti-dumping duties by an importer of lemon juice?

15.Of the parties listed below, which party is entitled to claim manufacturing drawback when the right to claim drawback has not been assigned by certification?

16.An entry made on July 18, 2003 is under a statutory suspension of liquidation because it is subject to an anti-dumping duty (ADD) order and is later liquidated on December 20, 2014. When must a protest be filed to be considered timely?

17.How long must records supporting a claim under the modernized drawback regulations be reatined?

18.A Notice of Intent to Export, Destroy or Return Merchandise for Purposes of Drawback on CBP Form 7553 for merchandise that is going to be exported, shall be filed by the claimant with the CBP port of intended examination at least _____ working days prior to the intended exportation for claims filed under 19 USC 1313(j).

19.If CBP believes that acceptance of an antidumping entry secured by a continuous bond would place the revenue in jeopardy or otherwise hamper the enforcement of applicable laws or regulations, CBP shall require additional security pursuant to_______________.

20.Drawback is allowable pursuant to 19 USC 1313 on duties, taxes, and fees paid on imported merchandise which were imposed under Federal law upon entry or importation. Duties include "ordinary customs duties." In the modernized drawback regulations, which ONE of the following is NOT included in ordinary customs duties?

21.Which of the following is NOT identified among the specified criteria that CBP will consider when reviewing an applicant’s record with CBP for purposes of an application for accelerated payment of drawback?

22.Which of the following documents is an acceptable proof of export for drawback purposes?

23.Factory imports pistons from Italy. Factory subjects the pistons to heat treatment and coats them with a specialized alloy, in order to render them fit for use in motorcycle engines. Any pistons Factory does not sell to domestic engine manufacturers are exported for sale abroad. May Factory claim unused merchandise drawback on the exported pistons?

24.Which of the answer choices listed below is NOT information required to be maintained by the drawback claimant in the proper documents generally kept in the normal course of business to substantiate a transfer of merchandise?

25.Based on the information below, what is the claimed amount for the merchandise processing fee (MPF) on an Unused Direct Identification 1313(j)(1) drawback claim? • Imported merchandise: 500 bikes ($200 per unit) $100,000 500 spare parts ($175 per unit) $87,500 Invoice value $187,500 Less Non-Dutiable Charges (NDC) -$2,500 Total Entered Value $185,000 Total MPF paid $485.00 MPF rate .3464% • Exported merchandise for drawback purposes: 200 bikes