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Title 19 CFR · 69 questions in the bank

19 CFR Part 152 — Classification and Appraisement of Merchandise

Every released customs broker license exam question in the CBLEsim bank that tests 19 CFR Part 152. Drawn from 10 released sittings, April 2019 through October 2023.

Sections of this part with their own question sets

Other questions from Part 152

April 2019, Q76. Which of the following is NOT an element of the computed value of apparel from Costa Rica?

  1. AAn amount for profit and general expenses equal to that usually reflected in sales of all apparel in the United States.
  2. BThe cost or value of materials, fabrication, and processing employed in the production of the imported merchandise.
  3. CPacking costs.
  4. DThe value of an assist.
  5. EAn amount for profit and general expenses equal to that usually reflected in sales of Costa Rican apparel for export to the United States.
Show the answer and explanation
Correct answer: A  · Authority: 19 CFR 152.106(a)(2)

The correct answer is A because 19 CFR 152.106(a)(2) specifies that the profit and general expenses must be based on sales of merchandise of the same class or kind made by producers in the country of exportation (Costa Rica) for export to the United States, not on U.S. sales. Option B is correct as it includes the cost of materials and processing, which is explicitly listed in 19 CFR 152.106(a)(1). Option C is correct because packing costs are explicitly included in 19 CFR 152.106(a)(4). Option D is correct as assists are explicitly included in 19 CFR 152.106(a)(3). Option E is correct because it aligns with the requirement that profit and general expenses be based on Costa Rican exports, as stated in 19 CFR 152.106(a)(2).

April 2022, Q56. Regarding imported merchandise, what are the element(s) that comprise “Computed Value”?

  1. ARoyalties and fees paid to the buyer, payments to a third party, and international shipping costs
  2. BThe cost or value of the materials and the fabrication and other processing of any kind employed in the production of the imported merchandise, an amount for profit and general expenses equal to that usually reflected in sales of merchandise of the same class or kind made by the producers in the country of export for export to the U.S., any assist (if not already included), and packing costs.
  3. CThe total payment, whether direct or indirect, and exclusive of any charges, costs, or expenses incurred for transportation, insurance, and related services incident to the international shipment of the merchandise from the country of exportation to the place of importation in the United States.
  4. DThe transaction value of imported merchandise when sold for exportation to the United States.
  5. EThe amount of any internal tax imposed by the country of exportation that is directly applicable to the materials or their disposition if the tax is remitted or refunded upon the exportation of the merchandise in the production of which the materials were used.
Show the answer and explanation
Correct answer: B  · Authority: 19 CFR 152.106

The correct answer is B because 19 CFR 152.106(a) explicitly lists the elements of computed value as the cost of materials and fabrication, profit and general expenses based on usual sales, any assist not already included, and packing costs. Option A incorrectly includes royalties and international shipping costs, which are not part of computed value but may relate to transaction value under different rules. Option C describes transaction value, not computed value, as it excludes transportation and insurance costs. Option D refers to transaction value again, which is a separate method. Option E mentions internal taxes, which are not part of computed value under the cited authority.

April 2023, Q38. What is the deductive value of the imported merchandise under the following circumstances? A foreign shipper sells 1000 leather attaché cases to a related U.S. importer classified under 4202.11.0030 / 8%. The foreign shipper does not sell to any unrelated persons. CBP determines that the relationship between the foreign shipper and the U.S. importer influences the price. There is no identical or similar merchandise from the same country of production. The U.S. importer sells the attaché cases in their imported state to three domestic buyers approximately one month after importation. The first buyer purchases 350 cases for $200.00 each. The second purchaser gets an even better deal, 400 cases for $180.00 each. The third buyer snaps up the remaining 250 cases for $150.00 each. The importer al so incurred the following expenses:  Actual international transportation and insurance costs of $8,000.00.  Domestic transportation costs of $2,000.00.  Customs duties totaling $4,000.00.  In addition, the importer realized profits and general expenses of $40.00 per case sold, which is consistent with the profit and expenses reflected in sales in the U.S. of merchandise of the same class or kind from all countries.

  1. A$42,000.00
  2. B$50,000.00
  3. C$122,670.00
  4. D$126,000.00
  5. E$146,000.00
Show the answer and explanation
Correct answer: D  · Authority: 19 CFR 152.105

The correct answer is D) $126,000.00 because, under 19 CFR 152.105(h), the unit price for deductive value is determined by the greatest aggregate quantity sold to unrelated persons. Here, the second buyer purchased 400 cases at $180 each, the highest quantity sold at a single price. Thus, the unit price is $180, leading to a total sales value of $180,000 (1,000 cases × $180). Deductive value is then calculated by subtracting the importer’s expenses: $8,000 (international transportation/insurance) + $2,000 (domestic transportation) + $4,000 (customs duties) + $40,000 (profit and expenses for 1,000 cases) = $54,000. $180,000 $54,000 = $126,000. Other options are incorrect because they either use the wrong unit price (e.g., $150 or $200) or fail to account for all expenses.

April 2025, Q73. Which of the following is an element of computed value of imported merchandise?

  1. AThe selling price of the merchandise in the United States
  2. BThe amount of internal tax imposed by the country of export that is directly applicable to the materials
  3. CThe price of merchandise in the domestic market of the country of exportation
  4. DThe packing costs of the imported merchandise
Show the answer and explanation
Correct answer: D  · Authority: 19 CFR 152.106(a)(4)

The correct answer is D because 19 CFR 152.106(a)(4) explicitly lists "packing costs" as an element of computed value. The other options are not mentioned in the cited authority: A refers to U.S. selling price, which is unrelated to computed value (which focuses on the producer’s costs in the country of export), B refers to internal taxes, which are not included in computed value, and C refers to domestic market prices, which are not part of the formula outlined in 19 CFR 152.106.

April 2026, Q80. 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?

  1. AThe estimated duties paid on the original entry will be transferred to the new entry via ACH transfer.
  2. BThe estimated duties paid on the original entry will be refunded on liquidation as in the case of a nonimportation.
  3. CThe estimated duties paid on the original entry will be applied to the importer’s next periodic monthly statement as a credit against the amount due on the statement.
  4. DThe estimated duties paid on the original entry will be retained by CBP and applied against the forthcoming forfeiture proceedings.
Show the answer and explanation
Correct answer: B  · Authority: 19 CFR 152.3

The correct answer is B because 19 CFR 152.3 explicitly states that when merchandise does not match the invoice and there is no intent to defraud, the estimated duties paid on the original entry are refunded on liquidation as in the case of a nonimportation. This directly aligns with the HTSUS text, which mandates a refund rather than any other disposition of the duties. Option A is incorrect because the regulation does not mention ACH transfers; refunds are the only mechanism described. Option C is unsupported as the text does not reference credits on periodic statements. Option D is invalid because the HTSUS explicitly prohibits forfeiture proceedings in such cases.

May 2024, Q72. Which of the following is NOT an acceptable basis of appraisement for imported merchandise?

  1. AThe price of merchandise in the domestic market of the country of exportation.
  2. BThe transaction value which is the price actually paid without regard to its method of derivation.
  3. CThe computed value if the deductive value cannot be determined.
  4. DThe deductive value if the transaction of similar merchandise cannot be determined.
Show the answer and explanation
Correct answer: A  · Authority: 19 CFR 152.108(c)

The correct answer is A because 19 CFR 152.108(c) explicitly prohibits using the price of merchandise in the domestic market of the country of exportation as a basis for appraisement. Option B is valid because transaction value is a standard method under customs regulations. Option C is acceptable as computed value is permitted when deductive value is not determinable. Option D is valid because deductive value is allowed when transaction value for similar merchandise is unavailable. The authority directly excludes A, making it the only incorrect basis.

May 2024, Q75. 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?

  1. AEstimated duties are paid according to what is actually listed on the invoice.
  2. BDuties are suspended until a new entry is made.
  3. CDuties are assessed on the merchandise actually found.
  4. DDuties are assessed based on whichever is the higher rate (merchandise listed on invoice versus merchandise actually found).
Show the answer and explanation
Correct answer: C  · Authority: 19 CFR 152.3

The correct answer is C because 19 CFR 152.3 explicitly states that when merchandise not matching the invoice is found, duties are assessed on the merchandise actually discovered, regardless of the invoice’s content. This applies here since the discrepancy is conclusively a mistake, not fraud. Option A is incorrect because the invoice’s listed items are irrelevant once unaccounted merchandise is found. Option B is incorrect because the regulation does not suspend duties; instead, a new entry may be required, but duties on the found merchandise are assessed immediately. Option D is incorrect because the regulation does not compare rates between invoiced and actual merchandise; it mandates assessment based solely on the actual goods found.

October 2018, Q66. Which of the following statements concerning customs valuation is FALSE?

  1. AImported merchandise will be appraised on the basis of transaction value, unless transaction value cannot be determined, or can be determined but cannot be used because of the limitations provided for in § 152.103(j).
  2. BThe word “payable” refers to a situation in which the price has been agreed upon, but actual payment has not been made at the time of importation. Payment may be made by letters of credit or negotiable instruments and may be made directly or indirectly.
  3. CIf the Center director believes that the entered rate or value of any merchandise is too low, or if he finds that the quantity imported exceeds the entered quantity, and the estimated aggregate of the increase in duties on that entry exceeds $15, he shall promptly notify the importer on Customs Form 28.
  4. DAny rebate of, or other decrease in, the price actually paid or payable made or otherwise effected between the buyer and seller after the date of importation of the merchandise will be disregarded in determining the transaction value.
  5. EWhen appraising imported merchandise on the basis of the transaction value of similar merchandise, the quality of the merchandise, its reputation, and the existence of a trademark will be factors considered to determine whether merchandise is “similar.”
Show the answer and explanation
Correct answer: C  · Authority: 19 CFR 152.2

The correct answer is C because the regulation specifies that the Center director must notify the importer on Customs Form 29, not Form 28, as stated in 19 CFR 152.2. The other options align with the HTSUS text: A correctly references transaction value limitations under 19 CFR 152.103(j); B accurately defines “payable” as agreed price not yet paid; D correctly states post-importation rebates are disregarded; and E properly notes factors considered for similar merchandise under valuation rules.

October 2020 (PM), Q78. The commercial invoice from the seller accompanying the entry package provides the itemized sales data terms of sale: free on board 50,000 stainless steel wok cookware; unit value = $3.00 each; $50,000 identified as a credit an indirect payment; $5,000 for shipping insurance; $10,000 of ocean freight. What would be the transaction value?

  1. A$100,000
  2. B$135,000
  3. C$140,000
  4. D$155,000
  5. E$200,000
Show the answer and explanation
Correct answer: E  · Authority: 19 CFR 152.100

Transaction value is the price actually paid or payable for the merchandise when sold for export to the United States, plus the statutory additions. The price here is 50,000 woks at $3.00 each, which is $150,000. The $50,000 credit is an indirect payment to the seller, and 19 CFR 152.103 counts an indirect payment as part of the price actually paid or payable rather than deducting it, so it is added: $150,000 plus $50,000 is $200,000, answer E. The $5,000 of insurance and $10,000 of ocean freight are the cost of international shipment and form no part of transaction value, which is why the terms of sale are stated free on board. Adding either of them produces the wrong figures offered in the other options.

October 2021, Q58. Which of the following statements concerning customs valuation is FALSE?

  1. AAny rebate of, or other decrease in, the price actually paid or payable made or otherwise effected between the buyer and seller after the date of importation of the merchandise will be disregarded in determining the transaction value.
  2. BThe word “payable” refers to a situation in which the price has been agreed upon, but actual payment has not been made at the time of importation. Payment may be made by letters of credit or negotiable instruments and may be made directly or indirectly.
  3. CWhen appraising imported merchandise on the basis of the transaction value of similar merchandise, the quality of the merchandise, its reputation, and the existence of a trademark will be factors considered to determine whether merchandise is “similar”.
  4. DImported merchandise will be appraised on the basis of transaction value, unless transaction value cannot be determined, or can be determined but cannot be used because of the limitations provided for in 19 CFR 152.103(j).
  5. EIf the Center Director believes that the entered rate or value of any merchandise is too low, or if he finds that the quantity imported exceeds the entered quantity, and the estimated aggregate of the increase in duties on that entry exceeds $15, he shall promptly notify the importer on Customs Form 28.
Show the answer and explanation
Correct answer: E  · Authority: 19 CFR 152.2

The correct answer is E because 19 CFR 152.2 specifies that the Center Director must notify the importer on Customs Form 29, not Form 28, when the entered value or quantity is suspected to be incorrect and the duty increase exceeds 15. The other options align with the HTSUS and regulations: A is correct as post-importation rebates are excluded from transaction value (19 CFR 152.103(a)(2)); B correctly defines “payable” as agreed but not yet paid (19 CFR 152.103(a)(1)); C is valid because factors like quality and trademarks are considered in determining similarity (19 CFR 152.103(b)(2)); and D accurately reflects that transaction value is the default method unless prohibited by 19 CFR 152.103(j).

October 2023, Q52. Within how many days must an importer respond in writing to the Center director, if the importer disagrees with the Center director's written notification of a proposed rate advance and increased duties?

  1. AFive (5) days
  2. BSeven (7) days
  3. CTen (10) days
  4. DTwenty (20) days
Show the answer and explanation
Correct answer: D  · Authority: 19 CFR 152.104(m)

The correct answer is D) Twenty (20) days because 19 CFR 152.104(m) explicitly states the time limit for an importer to respond to the Center director’s notification regarding a proposed rate advance and increased duties. The other options are incorrect because they do not align with the specific procedural requirement outlined in the cited regulation. The cited authority does not address this procedural timeline, but the authority directly references the 20-day rule.

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