Duties, Fees and Refunds: practice questions · page 2

26.Which of the following is considered foreign territory for drawback purposes?

27.CBP has determined that a drawback claim is complete, but additional information is still required and has notified the drawback claimant (“claimant”). Five days after the notification date, the claimant filed, in writing, an extension for time to respond. Therefore, within how many days of the original date of notification from CBP to the claimant must the claimant furnish the CBP-requested information?

28.Qualifying expenditures may be offset by a distribution of assessed antidumping and countervailing duties. These expenditures must be incurred after the issuance, and prior to the termination, of the antidumping duty order or finding or countervailing duty order under which the distribution is sought. Further, these expenditures must be related to the production of the same product that is the subject of the related order or finding, with the exception of expenses incurred by associations which must relate to a specific case. These expenditures must fall within the categories described below, EXCEPT:

29.What is the maximum civil administrative penalty for any person who seeks, induces, or affects, or attempts to seek, induce, or affect, the payment of drawback by fraud?

30.Company A imported seven ball bearings with integral shafts from Germany, which are classified under subheading 8482.10.10, Harmonized Tariff Schedule of the United States, at a 2.4% ad valorem duty rate and are subject to antidumping duties. The ball bearings are shipped by air and formally entered at Chicago O’Hare International Airport. The total value of the shipment is $9,875.00. The applicable antidumping duty cash deposit rate is 86.98%. What are the total amount of fees and estimated duties that should be reported on CBP Form 7501?

31.All the following information must be included in other Federal agency requests to CBP for investigation in proceedings relating to the evasion of antidumping and countervailing duty (AD/CVD) orders consistent with the Trade Facilitation and Trade Enforcement Act of 2015 (“TFTEA”), EXCEPT:

32.Which of the following factors does CBP NOT consider when requiring a claimant to restructure their drawback claims in such a manner as to foster administrative efficiency?

33.No later than once every five years, a __________ occurs when the Secretary of the Department of Commerce determines whether dumping or countervailable subsidies would be likely to continue or resume if an order were revoked or a suspended investigation were terminated.

34.For merchandise that is subject to an antidumping or countervailing duty order and is to be entered under a consumption entry, which of the following data elements must be submitted on the entry summary, or its electronic equivalent, in addition to those data elements that are regularly required by CBP Form 7501 or its electronic equivalent?

35.How much is the maximum administrative penalty, in terms of total actual, or potential loss of revenue, for a person who seeks, induces, or affects the payment of drawback by fraud or negligence?

36.Only the ________ is entitled to claim drawback unless a certification assigning the right to drawback to another entity is in place.

37.An allegation of evasion of AD/CVD filed by an interested party against an importer must include all the following EXCEPT:

38.Qualifying expenditures, which may be offset by a distribution of assessed antidumping and countervailing duties, must fall within all of the categories described below, EXCEPT: “These expenditures must be incurred after the issuance, and prior to the termination, of the antidumping duty order or finding or countervailing duty order under which the distribution is sought. Further, these expenditures must be related to the production of the same product that is the subject of the related order or finding, with the exception of expenses incurred by associations which must relate to a specific case.”

39.The determination of the applicable AD/CVD investigations or orders is governed by the “time of entry” according to which:

40.Which of the following best describes a drawback claim, as authorized for payment by CBP?

41.All of the following are acceptable limited modifications to a specific manufacturing drawback ruling that can be submitted to the drawback office(s) where claims are filed, EXCEPT:

42.An entry made on July 18, 2003 is under a statutory suspension of liquidation because it is subject to an antidumping order and is later liquidated on December 20, 2004. A protest must be filed in order to be considered timely filed.

43.Boots-4-U ordered 1,000 pairs of men's motorcycle boots predominantly of leather in three styles as follows. Boot Style Per-pair Cost Quantity Total Black upper and black sole $100.00 500 $50,000.00 Black upper and black sole with chains at ankle $125.00 350 $43,750.00 Brown upper and black sole $150.00 150 $22,500.00 Total $116,250.00 On April 23, 2024, Boots-4-U correctly filed a formal consumption entry with all the boots on one entry summary line. Boots-4-U utilized subheading 6403.91.6075, HTSUS, for all 1,000 pairs of boots. Boots-4-U’s merchandise was exempt from the merchandise processing fee pursuant to 19 CFR 24.23(c)(1)(iii), but did not meet the duty-free requirements. Therefore, duties were correctly calculated and paid, with a total duty cost of $9,881.25. No other fees were due. Boots-4-U then exported 100 pairs of the black upper and black sole boots and 100 pairs of the black upper and black sole with chains at the ankle boots. Boots- 4-U filed the first drawback claim properly calculating drawback using the per unit averaging accounting method pursuant to 19 CFR 190.14(c)(4)(i). In a domestic transaction, Boots-4-U sold all 150 units of the brown upper and black sole boots to Discount Boot House (Discount) for $135.00 per pair and transferred drawback rights for that merchandise to Discount. After the sale, Discount timely exports all boots it bought from Boots-4-U and files a drawback claim as the transferee. Which statement below is accurate regarding the per unit drawback that Discount can claim on the brown upper and black sole boots?

44.Which designated merchandise qualifies for Direct Identification Unused Merchandise Drawback under 19 USC 1313(j)(1)?

45.Which of the following answers is NOT a condition or criteria for identification of merchandise or articles by accounting method for drawback purposes?

46.X-Rocs, Inc. (X-Rocs) imports multifunction digital office machines (copiers) with copy, print, fax, and scan functions to the U.S. from Korea. X-Rocs has a valid limited power of attorney (POA) with Expeditious Customs Brokers, LLC (Expeditious), limited to entering imported merchandise for consumption. Four years after importation, if the copiers have not sold in the U.S., X-Rocs exports the copiers to India. X-Rocs has a valid limited POA with Trade Experts Customs Brokers (TradeEx) for its drawback program. X-Rocs’ Vice President has signed a POA granting X-Rocs’ Trade Compliance Manager, who is not a licensed customs broker, the power to sign contracts and business documents on behalf of X-Rocs. A broker at TradeEx executed a POA with an unlicensed employee to sign customs business documents on behalf of TradeEx. Of the list below, who does NOT have the authority to sign drawback entries submitted to CBP on behalf of X-Rocs?

47.Each manufacturer or producer submitting a letter of notification of intent to operate under a general manufacturing drawback ruling must provide the following specific detailed information, EXCEPT:

48.Choose the ONE answer that correctly fills in the blank. Unless CBP uses its discretionary authority to investigate other entries, entries that may be the subject of an allegation or request for investigation under Enforce and Protect Act of 2015 (EAPA) are those entries made within _________ before the receipt of an allegation or request for investigation.

49.AZ-DZ Audio, Inc. (AZ-DZ) manufactures stage monitor loudspeakers (monitors) in Arizona from a mix of foreign and domestic components. Three years ago, AZ-DZ made a special export edition of its “Goes to Eleven” monitor for customers outside the U.S. That same year, AZ-DZ imported special gold cables from South Korea to be used in the Goes to Eleven monitors. AZ-DZ did not use all of the imported cables to make monitors and exported its excess stock back to the supplier last year. AZ-DZ now wants to claim unused merchandise drawback under 19 USC 1313(j) for duties paid on the unused cables. AZ-DZ never provided prior notice of intent to export or destroy merchandise to CBP as required by 19 CFR 190.35. In order to claim unused merchandise drawback despite its failure to comply with 19 CFR 190.35, AZ-DZ files an application with CBP’s Detroit Drawback office pursuant to the CBP regulations. Which of the following information is AZ-DZ NOT required to provide in their application?

50.XYZ company imports red paint made in Japan, and enters and pays duty on the paint. XYZ also buys the same red paint made in Toledo, Ohio. XYZ uses the red paint for its manufacture of toy fire engines, which it exports to China and sells domestically in the U.S. The Japanese paint is poured into a vat for use in the west side of the factory. The paint from Ohio is put into a vat for use by the east side. This separation of the paint is due only to the timing of the paint deliveries. The paint from Ohio and the paint from Japan are identical. The toy fire engines produced on the east and west side of the factory are also identical and are all sent to a central shipping area via conveyor belt to be boxed and shipped. Once the toys arrive in this area, they are packaged and boxed for shipping to China and cities in the U.S. without regard to which side of the factory produced them. Based on the above facts, and assuming all statutory and regulatory requirements are met, XYZ may be able to claim what type of duty drawback on the red paint used to paint the exported toy fire trucks?