Valuation: practice questions · page 3

51.Bebe Mattresses (Bebe), an Italian importer and manufacturer in Italy of toddler bed and baby crib cotton mattresses (mattresses), imported 140 toddler bed mattresses from WeSew, a manufacturer, in China with a value of $2,000.00 US. Bebe repackaged the toddler bed mattresses into individual plastic bags imprinted with Bebe’s logo. Bebe shipped the 140 toddler bed mattresses and 80 baby crib mattresses manufactured by Bebe in Italy to Upscale Baby Furniture, a buyer in the United States. Bebe invoiced Upscale $4,200.00 for the 140 toddler bed mattresses and $1,700.00 for the 80 baby crib mattresses. Which of the formulas below yields the estimated anti-dumping / countervailing duty (AD/CVD) deposit due for the following merchandise? The “all other companies” AD/CVD rates apply. The rate is ad valorem. The possible cases, countries, and rates are: • A-475-845-000; Italy; 257.06% • A-570-092-000; China; 1731.75% • C-570-128-000; China; 97.78% In the formulas below, the “x” stands for “multiplied by.”

52.ACME, a U.S. Company, purchases 100 machines from a company in Japan. ACME will make an initial down payment for the machines. Once the machines are made, ACME will make another payment. The Japanese company ships the machines to the United States on a Free on Board (FOB) basis. Once the goods are entered into the United States, ACME will make another payment to the Japanese company. What charges would NOT be included in the dutiable value of the machines?

53.When does an antidumping or countervailing duty (AD/CVD) proceeding begin, assuming the proceeding was not self-initiated by the United States?

54.Calculate the duty for the following merchandise. Fresh shiitake mushrooms (not dried) have been imported into the United States. The invoiced amount for the mushrooms is $7.56 per kilogram. There are 2,000 kilograms in the shipment.

55.Your client is importing a shipment of blended syrups containing sugars derived from cane sugar with added yellow color but no added flavoring. The blended syrup (sirup) is capable of further mixing and is packaged consistent with the needs of commercial carbonated beverage manufacturers in 30-gallon drums and is not packaged consistent with marketing to the ultimate consumer. The syrup was manufactured in the British Virgin Islands and imported directly from the British Virgin Islands. The merchandise will be properly classified under subheading 2106.90.4400, HTSUS. The quota is open. There are 50 drums total. The net weight of the 50 drums of syrup is 4,770 kilograms. The raw (total) sugar weight is 4,436 kilograms. How much will the estimated duty be?

56.An allegation by an interested party that an importer of covered merchandise has evaded antidumping or countervailing (AD/CVD) duty order under the Enforce and Protect Act of 2015 (EAPA) must include all of the following information EXCEPT:

57.If the transaction value of similar merchandise cannot be determined, which of the following choices is an acceptable basis of appraisement for imported merchandise?

58.An importer enters gas turbines manufactured in China through the Port of Boston. The importer indicates that the basis of appraisal is transaction value based upon a sale of merchandise to the importer from the unrelated manufacturer M. The importer pays a royalty to Company A for the right for manufacturer M to use patented technology in the production of the gas turbines in China. After importation, the imported gas turbines are used in the production of other goods in the United States using a patented technology for which the importer pays Company B for the right to use. The contract between the manufacturer and the importer makes no reference to either Company A’s or Company B’s patented technology, or the royalty payments to the companies. Which of the following describes the dutiable status of the royalty payments and the reason for that status is?

59.When an entry is subject to antidumping and/or countervailing duties (AD/CVD), what certification is required to be submitted prior to liquidation by the importer? For the purposes of this question, CBP has been directed not to accept any such certification after liquidation.

60.Choose the correct answer to fill in the blank. Reduced or modified duty rates under tariff- rate quotas established pursuant to section 350 of the Tariff Act of 1930, as amended and extended (19 U.S.C. 1351), are not applicable to products imported directly or indirectly from _____.

61.Upon conclusion of an investigation under 19 CFR 165.15, CBP will make a determination based on _____ as to whether covered merchandise was entered into the customs territory of the United States through evasion.

62.A shipment of plastic optical fibers manufactured in China is valued at $95,678.00 and imported under HTS 9001.10.0050. What is the total applicable duty amount for this shipment? Note: duties based upon Executive Orders which are not part of the examination references are not inlcuded.

63.What is the correct rate and duty designation under the following facts? CBP identified an importer’s shipment of ‘widgets’ with a country of origin of China that falls within the scope of antidumping and countervailing case A-570-998 and C-570-999 respectively. The entry was originally filed as a type 01 entry, and not on Immediate Delivery procedures. On September 10, 2023 CBP rejected the entry summary back to filer’s control to resubmit as a type 03 and make payment for duties owed. The shipment’s import date is March 25, 2023, the entry date is March 27, 2023 and the entry summary date is April 3, 2023. After broker review of the manufacturer and exporter in the shipment, it was determined the correct cases applicable to the parties are A-570-998-000 and C570-999-001. The following rates/dates are identified in the Automated Commercial Environment (ACE) Anti-dumping / Countervailing Duty (ADCVD) Case Information database: A-570-998-000 • Effective Date: 03/26/2022-35% • Effective Date: 03/26/2023-20% • Effective Date: 09/01/2023-10% C-570-999-001 • Effective Date: 01/01/2023-10% • Effective Date: 03/01/2023-0% • Effective Date: 04/01/2023-5%

64.Transaction value means:

65.Appraise the total transaction value for the We Are Toys shipment described below. Foreign shipper sells the Lords of Riverbank board game and other board games to U.S.- based game product wholesalers and retailers. The price per unit to the wholesalers is the foreign shipper's suggested retail price in the U.S. discounted by 70 percent (70%). The price per unit to retailers is the foreign shipper's suggested retail price in the U.S. discounted by 50 percent (50%). All other terms are the same for both wholesalers and retailers. The foreign shipper's suggested retail price in the U.S. for the Lords of Riverbank is $80.00. The foreign shipper sells the Lords of Riverbank board game and similar board games to wholesalers in the U.S. on a continuous basis. We Are Toys is a U.S. retailer and purchases 50 copies of Lords of Riverbank, packed, ready for shipment with no selling commission, assist, royalty fee or license fee.

66.Regarding imported merchandise, what are the element(s) that comprise “Computed Value”?

67.A U.S. buyer purchased merchandise from an unrelated manufacturer in India. The terms of the sale were ex-factory packed. The U.S. buyer paid the foreign manufacturer $18,344 which included a $1,500 packing fee. The U.S. buyer also paid $4,500 to a freight forwarder to cover expenses for inland freight of $500 and air freight of $4,000. In addition, the U.S. buyer paid a commission of $1,500 to a buying agent who facilitated the purchase of the merchandise. What is the entered value for the imported merchandise?

68.Which of the following is a limitation on the use of transaction value for imported merchandise?

69.A shipment of Evaporative Air Coolers with a documented U.S. value of $100,000 was exported to Taiwan for $2000 in repairs, and then reimported into the U.S. Which of the following value(s) and classification(s) apply to the Evaporative Air Coolers?

70.Which of the following costs should NOT be added to the price actually paid or payable to determine the transaction value for an entry of handmade leather bags?

71.Transaction value means:

72.A U.S. importer and a foreign manufacturer enter into a contract for 500 wooden tables. In the contract, the manufacturer agrees to provide 500 tables at a price of $500 per table. The tables are to be delivered in lots of 100 tables on the first of each month for a period of five months. The importer provided the foreign manufacturer with an assist in the form of special tools. The tools were purchased from an unrelated party in Chicago, and delivered for free to the manufacturer abroad. The tools have a useful life of 500 tables. Several weeks later, the first shipment under the contract, which contains the first 100 tables, arrives in the United States. Which of the following methods of apportioning the assist is NOT acceptable?

73.Which of the following Special Program Indicators (SPI) is NOT valid?

74.If the commercial invoice is in a foreign currency, the foreign currency shall be converted to U.S. dollars using the proclaimed rate or certified rate or rates effective on the _____.

75.Which statement is FALSE with respect to the applicable rates of duty?