Valuation: practice questions · page 4

76.A shipment of portable gas stoves manufactured in Sweden are imported into the United States. The appraised value of each stove upon importation is $600.00. They are classified under 7321.11.1030 with a duty rate of 5.7 percent. The importer discovers that 15 of the stoves have a faulty gas valve. The stoves are exported to Canada for warranty repair. Upon reimportation from Canada, there is no charge to the importer, but the value of the repair is $120.00 each. The reimportation is under 9802.00.40 in the Harmonized Tariff Schedule of the United States. Which statement accurately reflects the dutiable value and duty rate upon reimportation?

77.Which of the following accurately defines “Quota priority?”

78.For the aggregate quantity of chocolate containing over 5.5 percent by weight of butterfat (excluding articles for consumption at retail as candy or confection), which one of the following countries shall have access to "not less than 3,379,279 kg"?

79.When determining if goods qualify for the United States-Colombia Free Trade Agreement, which of the following is NOT a permissible addition to the value of originating materials?

80.Exporter E provides the following quantity discounts on mattresses purchased by importers before their importation: • 1 to 99 mattresses - no discount • 100 to 499 mattresses - 10% discount • Over 500 mattresses - 15% discount Under the first scenario, Importer X purchases and imports 120 mattresses in a single shipment. The invoice price reflects a 10% discount. Under the second scenario, Importer Y purchases 120 mattresses in a single transaction at a price which reflects a 10% discount but imports them in four separate shipments each comprising 30 mattresses. What is the customs value of the imported mattresses under the two scenarios?

81.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 _____.

82.What are the two methods of calculating regional value content under the United States- Mexico-Canada Agreement?

83.A U.S. furniture company imports dressers from a manufacturer in New Zealand. The U.S. company purchases and sends the designs and materials set forth below to the New Zealand manufacturer to aid in the production process. The cost of which of the following should not be added to the price actually paid or payable as an assist?

84.For which ONE of the following transactions would the commission amount paid by the buyer NOT be added to the price paid or payable when determining transaction value?

85.Of the following importation scenarios, which has a Transaction Value?

86.Which of the following statements concerning customs valuation is FALSE?

87.A U.S. hardware company imports hammers from a manufacturer in Argentina. The U.S. company purchases and sends the designs and materials set forth below to the Argentinian manufacturer free of charge to aid in the production process. The cost of which of the following should not be added to the price actually paid or payable as an assist?

88.A mold for toys was provided free of charge to a French manufacturer by the U.S. importer. The original cost of the mold was $180,000 but 2/3 of the useful life of the mold had been used by the U.S. importer prior to sending it to France. The U.S. Importer paid the freight cost of $1,600. When calculating transaction value, what is the total value of the assist for the mold?

89.Luxury Resins, a Japanese producer of plastic materials, sold resin to Phone Cases Plus, an unrelated U.S. manufacturer, for $20,000. Later, Phone Cases Plus decides to pay a $2,000 royalty to Disney for the right to manufacture and sell Disney-branded phone cases. It makes these phone cases out of the resin purchased from Luxury Resins. What is the transaction value of the transaction between Luxury Resins and Phone Cases Plus?

90.Upon importation, an importer inspected its merchandise, women’s shirts, and noted that the shirts were made of 98% cotton instead of 100% cotton, and that the sizing ran small and did not match what was listed on the sewn-in label. The merchandise was entered under 6206.30.30, HTSUS and duty paid. The importer’s buyer in the United States rejected the merchandise because it was not what the buyer ordered. The importer ultimately sold the merchandise to a discounted clothing store at 10% of what the original buyer agreed to pay. The importer requested a full refund of duties paid on the merchandise claiming it was defective. Which of the following is the best description of what the importer is entitled to in this situation?

91.Under the United States-Mexico-Canada Agreement (USMCA), CBP determined that the importation of a series of non-commercial goods was carried out for the purpose of evading compliance. CBP has notified the importer that they must submit a copy of a certification of origin for the goods. When must the importer submit the certificate to CBP?

92.A shipment of 1,000 water bottles manufactured in Germany is entered at $20.00 per unit at the Port of Philadelphia. The water bottles were shipped from Hamburg to Philadelphia with a shipping cost of $300.00. On the invoice, a credit of $10,000.00 for a previous overpayment by the buyer has been applied to the selling price. The total due on the invoice is $10,300.00. What is the transaction value of the merchandise based on the provided information?

93.Merchandise imported from either Canada or Mexico under the Harmonized Tariff Schedule of the U.S. ( HTSUS) subheading 9811.00.60 is a "commercial sample of negligible value" if the commercial sample is _____.

94.During a cargo examination of entered goods, a CBP officer discovered that none of the physical merchandise agrees with the invoice submitted with the entry. The CBP officer determines that there was no evidence of any intent to defraud. The original entry must be replaced by a new entry. How will the estimated duties paid on the original entry be treated?

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

96.An examining officer finds merchandise during a cargo inspection that is not invoiced. There is no evidence that smuggling was intended, and the failure to invoice the merchandise is conclusively a mistake. Which of the following is true regarding the duties on the merchandise found?

97.Diane Baker is a licensed customs broker who executed a general power of attorney with Olympic Imports. Throughout 2024, Diane filed quota warehouse withdrawal entries (entry type 32) on behalf of Olympic Imports for various steel tubes subject to an absolute quota. Olympic Imports has provided Diane with paperwork from its manufacturer for a new shipment of steel tubes due to arrive on December 14, 2024. Per CBP, the absolute quota for steel pipes has been filled for 2024 and is closed. The next quota period opens on January 1, 2025. Which answer best describes how Diane must dispose of the steel tubes arriving on December 14, 2024?

98.Coffee Inc., a Canadian company, buys raw coffee beans from Colombia classified under the Harmonized Tariff Schedule (HTS) subheading 0901.11. Coffee Inc. then processes the beans into instant coffee classified under 2101.11.21. The instant coffee is then imported into the U.S. for sale. In order for the instant coffee to qualify for preferential tariff treatment under the United States-Mexico- Canada Agreement (USMCA), which of the following statements must be TRUE?

99.Disregarding antidumping and/or countervailing duties, if any, what is the duty rate of an imported aluminum product valued at $39,999.00 with a country of origin of the Russian Federation classified under subheading 7606.12.3035?

100.Toys for All is a U.S. importer of toys from several countries. The company approaches the broker to discuss its current valuation method. The company provides details on various items and costs that are provided to the supplier in relation to the sale of the goods to the U.S. Which of the following would NOT be considered part of the transaction value for CBP purposes?