Title 19 CFR · 24 questions in the bank
19 CFR Part 159 — Liquidation of Duties
Every released customs broker license exam question in the CBLEsim bank that tests 19 CFR Part 159. Drawn from 9 released sittings, April 2019 through October 2025.
Sections of this part with their own question sets
- 19 CFR 159.32 — 5 questions
- 19 CFR 159.12 — 5 questions
Other questions from Part 159
April 2019, Q34. 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.”
- AManufacturing facilities
- BHousing
- CPersonnel training
- DHealth care benefits for employees paid for by the employer F. Equipment
Show the answer and explanation
The correct answer is B) Housing because 19 CFR 159.61(c) explicitly lists qualifying expenditures as including manufacturing facilities, equipment, personnel training, and health care benefits for employees, but does not mention housing. The other options are directly referenced in the cited text as qualifying categories. Housing is excluded because the authority does not identify it as a permissible expenditure under the Continued Dumping and Subsidy Offset Act.
April 2021, Q58. Which of the below total entered values is correctly formatted for use in computation of duty and fees on an entry?
- A$10,250.06
- B$ 12,450.00
- C$ 13,976.25
- D$15,906.15
- E$15,333.49
Show the answer and explanation
The correct answer is B) $12,450.00. 19 CFR 159.3(a) provides that in computing duty on entries, ad valorem rates "shall be applied to the values in even dollars, fractional parts of a dollar less than 50 cents being disregarded and 50 cents or more being considered as $1". A value ready for that computation therefore carries no cents, and $12,450.00 is the only choice that does. Each other option still has a fractional part the rule would have to resolve first, and all four happen to fall under 50 cents, so they would be disregarded: the 6 cents on $10,250.06, the 25 on $13,976.25, the 15 on $15,906.15 and the 49 on $15,333.49. The question is not about how many decimal places are written but about whether the figure is already expressed in the even dollars the regulation computes on.
April 2025, Q45. CBP liquidated an entry, ascertaining the duties, fees, and taxes at $750.00. However, the estimated duties, fees, and taxes the broker had deposited at entry amounted to $1,000.00. What is legally required to occur to address the discrepancy between the estimated duties and ascertained duties?
- AThe broker must file a protest to request a refund.
- BCBP should disregard the difference because it less than $300.00, a de minimus amount.
- CCBP should refund the broker $250.00 with interest.
- DThe broker must withdraw the entry and make another deposit to correct amount of duties, fees, and taxes.
Show the answer and explanation
The correct answer is C because 19 CFR 159.6(c) mandates that when the difference between ascertained and estimated duties exceeds $20, CBP must issue a refund or collect the difference, including interest. Here, the $250 discrepancy exceeds the $20 threshold, requiring a refund. Option A is incorrect because a protest is not required for automatic refunds under this rule. Option B is invalid because the regulation does not reference a $300 de minimus threshold. Option D is incorrect because the rule does not require entry withdrawal or re-deposit; it explicitly directs refunds or collections.
October 2018, Q65. Mary’s Motor speedway in Buffalo, NY purchased 1 BMW car from Everything Foreign Auto dealers in London. The invoice that was prepared for the sale and the shipment of the car listed the total price paid or payable of 100,000 British pounds. The sales contract did not include an agreed upon currency exchange rate. The car was shipped by vessel from Liverpool, England on March 25, 2018 and arrived in Newark, NJ on April 3, 2018. The certified quarterly rate of exchange for the British pound on March 25, 2018 was $1.50. However, the certified quarterly rate of exchange for the pound on April 3, 2018 was $2.00. Which of the following is the value to be declared for entry purposes?
- A$100,000
- B$150,000
- C$200,000
- D$250,000
- E$300,000
Show the answer and explanation
The correct answer is B) 150,000 because 19 CFR 159.31 and 19 CFR 159.34 require the use of the certified exchange rate on the date of shipment (March 25, 2018), which was 1.50. The value is calculated by multiplying the invoice amount (100,000 GBP) by this rate, resulting in 150,000. Options A, C, D, and E are incorrect because they either use the wrong exchange rate (e.g., the April 3 rate in C) or misapply the rules by ignoring the shipment date requirement. The regulations explicitly prioritize the certified rate on the shipment date, not the arrival date or any other arbitrary rate.
October 2019, Q11. What action shall CBP take with regard to entries covering merchandise that is possibly prohibited by the Federal Food, Drug, and Cosmetic Act or the Federal Insecticide, Fungicide, and Rodenticide Act or the Federal Hazardous Substances Act before it is admitted into the United States?
- AAdmission shall be refused.
- BLiquidation shall be suspended.
- CMerchandise shall be destroyed.
- DMerchandise shall be exported.
- EMerchandise shall be admitted and transferred to bonded warehouse.
Show the answer and explanation
The correct answer is B because 19 CFR 159.55(a) explicitly mandates that liquidation of entries involving potentially prohibited merchandise under specified acts must be suspended until it is determined whether admission is permitted. This suspension allows CBP to investigate compliance without finalizing duties or admitting the merchandise. Option A is incorrect because admission is not automatically refused; the law requires a determination first. Options C and D are not immediate actions but potential outcomes if admission is later denied, as outlined in 19 CFR 159.55(b). Option E is unsupported by the regulation, which does not mention bonded warehouses in this context.
October 2021, Q2. I f there is a difference of less than $20.00 between the total amount of duties, taxes, and fees, including interest in the original liquidation, pertaining to a Post Summary Correction, U.S. Customs and Border Protection (CBP) has the authority to disregard the difference and liquidate “as entered” (De Minimis Rule). Under what Section of title 19 Code of Federal Regulations (19 CFR) would you find this authority?
- A19 CFR 141.1
- B19 CFR 143.28
- C19 CFR 145.26
- D19 CFR 159.6
- E19 CFR 171.62
Show the answer and explanation
The correct answer is D) 19 CFR 159.6, as the cited authority explicitly states the de minimis rule for disregarding differences under $20 in liquidation or reliquidation. This section directly addresses the scenario described in the question, including the $20 threshold and the endorsement of entries "as entered." Other options, such as 19 CFR 141.1 (entry procedures), 143.28 (protests), 145.26 (entry summaries), and 171.62 (penalties), do not pertain to the specific duty adjustment rule outlined in 19 CFR 159.6.
October 2021, Q49. 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:
- AHousing
- BHealth Care Benefits for employees paid for by the employer
- CEquipment
- DManufacturing facilities
- EPersonnel Training
Show the answer and explanation
The correct answer is A) Housing because 19 CFR 159.61(c) explicitly lists qualifying expenditures such as manufacturing facilities (c)(1), equipment (c)(2), personnel training (c)(4), and health care benefits (c)(6), but does not include housing. The other options are explicitly permitted under the regulation. The exception in the question is correctly identified as housing, which is not among the categories described in the cited authority.
October 2022, Q24. Upon auditing an entry, the importer of record (IOR) discovered that the total entered value was incorrect. The correct entered value was $5,718.00 more than shown on the entry documentation, resulting in additional duty in the amount of $187.25 and additional MPF in the amount of $19.81. The IOR requested that its broker file an accelerated liquidation PSC and advised that it would pay the bill for the underpayment upon receipt. There are 120 days between when the duties, taxes and fees are due and the liquidation of the entry, so that, if interest is due, the interest on the additional duties would be $1.89 and the interest on the merchandise processing fee (MPF) would be $0.20. How much will the bill for the underpayment be?
- AThe bill will be for the $187.25 in additional duty because the MPF is under $20.00 and the interest on both the additional duty and the MPF is under $20.00, so the de minimus rule applies to both the MPF and the interest.
- BThe bill will be for $189.14 in additional duty plus interest and not the MPF because the de minimus rule applies to the additional MPF because the MPF is less than $20.00.
- CThe bill will be for $207.06, the additional duty plus the additional MPF, because CBP does not charge interest on underpayments where the liquidation takes place 180 days or less after the duty due date.
- DThe bill will be for $208.95, the duty plus interest and the MPF, because CBP does not charge interest on the underpayment of fees but does charge interest on the underpayment of duties.
- EThe bill will be for $209.15 which is the duty of $187.25 plus interest on the duty in the amount of $1.89 added to the additional MPF of $19.81 plus interest of $0.20 because the net difference in duties, taxes, fees, and interest is greater than $20.00.
Show the answer and explanation
The correct answer is E because the total amount of the underpayment, including the additional duty ($187.25), MPF ($19.81), and interest ($1.89 + $0.20), exceeds $20, triggering the requirement to collect all amounts under 19 CFR 159.6(c). The de minimis rule in 19 CFR 159.6(a) and (b) applies only when the net difference is less than $20, which is not the case here. Options A and B incorrectly apply the de minimis rule to individual components rather than the total, while C and D misinterpret the rule by referencing time thresholds or interest exemptions not mentioned in the cited authority.
October 2022, Q50. What is the exception to the general rule that the notice of liquidation will be dated with the date posted electronically on www.cbp.gov?
- AThe courtesy notice of liquidation is posted electronically on www.cbp.gov seven (7) days before the date of liquidation so that importers and brokers can request an extension before the actual liquidation date.
- BReconciliation entries are not posted on the notice of liquidation with a liquidation date of the date that it is posted electronically on www.cbp.gov because only the underlying entries of a reconciliation entry liquidate, and they would have been posted on their liquidation dates.
- CThere is no exception to the general rule that the notice of liquidation will be dated with the date posted electronically on www.cbp.gov.
- DThe notice of liquidation on a warehouse entry will not be posted on the date of liquidation of the entry when merchandise is being rewarehoused as both the warehouse entry liquidation and rewarehouse liquidation will be posted on the same date, the date that the rewarehouse entry liquidated.
- EEntries that are liquidated by operation of law will be deem liquidated as of the date of the expiration of the appropriate statutory period and will be posted on www.cbp.gov when CBP determines that each entry has liquidated by operation of law and will be dated with the date of liquidation by operation of law.
Show the answer and explanation
The correct answer is E because entries liquidated by operation of law are deemed liquidated on the date the statutory period expires, not the date posted electronically, as per 19 CFR 159.9 (not provided here). The other options describe scenarios where notices are posted on specific dates but do not qualify as exceptions to the general rule. Option A refers to a courtesy notice, which does not alter the general rule. Option B involves reconciliation entries, which are not exceptions to the rule about dating notices. Option D describes warehouse entries but does not meet the criteria for an exception. Option C incorrectly states there is no exception, which contradicts the rule in 19 CFR 159.9.
October 2023, Q10. Choose the ONE answer that correctly fills in the blank. _____ means the final computation or ascertainment of duties on entries for consumption or drawback entries.
- AAppraisement
- BClassification
- CLiquidation
- DValuation
Show the answer and explanation
The correct answer is C) Liquidation because 19 CFR 159.1 explicitly defines liquidation as the final computation or ascertainment of duties on entries for consumption or drawback entries, aligning directly with the question’s description. Appraisement (A) involves determining the value of goods for duty purposes, valuation (D) focuses on establishing the value for customs purposes, and classification (B) pertains to assigning goods to the correct tariff classification, none of which match the definition provided in the authority.
October 2023, Q12. Under Title 19 of the Code of Federal Regulations, which statement is FALSE with respect to informal entries?
- AThe value of the merchandise for an informal entry may not exceed $2,500.00.
- BInformal entries liquidate on the date released if duty free.
- CInformal entries are not permitted for restricted and/or prohibited merchandise.
- DA clerical error or mistake of fact on an informal entry is remedied using a post-summary correction(PSC).
Show the answer and explanation
The correct answer is D because 19 CFR 159.10 does not mention post-summary corrections (PSCs) as a remedy for clerical errors or mistakes of fact on informal entries. The cited text focuses on liquidation dates and notices but does not address correction procedures. Option A is correct because 19 CFR 159.10 implicitly supports the $2,500 value limit for informal entries, as higher-value entries typically require formal procedures. Option B is correct because 19 CFR 159.10(a)(2) explicitly states that informal entries liquidate on the date of release if duty-free. Option C is correct because informal entries are generally restricted to non-prohibited and non-restricted merchandise, as formal procedures are required for restricted items.
October 2023, Q35. What is the reportable quantity of the following merchandise in the correct order of reporting? One meter equals 100 centimeters. One kilogram equals 1000 grams. Length in meters multiplied by width in meters equals meters squared. • The merchandise is woven corded wool tapestry fabric classified under subheading 5111.19.1000 of the Harmonized Tariff Schedule of the U.S. • The fabric measures 137 centimeters wide by 552 centimeters long. • The fabric weighs 3,600 grams.
- A75,624 cm2 / 3,600 g
- B76,000 cm2 / 4,000 g
- C8 m2 / 4 kg
- D4 m2 / 8 kg
Show the answer and explanation
The correct answer is C because the fabric's area is calculated as 1.37 meters (width) × 5.52 meters (length) = 7.5624 m², which rounds to 8 m² under 19 CFR 159.3(b) when quantities are reported for specific duties (even though the HTSUS duty here is ad valorem, the rounding rule for quantities still applies to the reportable quantity). The weight of 3,600 grams (3.6 kg) rounds to 4 kg under the same rule. Option A incorrectly uses exact centimeters and grams without rounding, and B uses incorrect rounded values. Option D reverses the order of area and weight, which is required by the HTSUS.
October 2025, Q53. An entry for warehouse was filed in 2025. Liquidation of the entry was never suspended or extended. When is the warehouse entry deemed liquidated by operation of law at the rate of duty, value, quantity, and amount of duties asserted by the importer of record?
- AOne year from the date of entry of the merchandise
- BOne year from the date of final withdrawal of all merchandise covered by the warehouse entry
- COne year from the date of the first withdrawal of merchandise covered by the warehouse entry
- DFive years from the date of importation of the warehouse merchandise
Show the answer and explanation
The correct answer is B because 19 CFR 159.11(a) explicitly states that a warehouse entry is deemed liquidated one year from the date of final withdrawal of all merchandise, not the entry date or first withdrawal. Options A and C are incorrect because they reference the entry date or first withdrawal, which are not the triggers for liquidation under the regulation. Option D is incorrect as the HTSUS text does not mention a five-year period for warehouse entries; the applicable timeframe is one year from the final withdrawal, as specified in 19 CFR 159.11(a).
October 2025, Q80. 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.”
- A($1,700.00 x 2.5706) + ($4,200.00 x 2.5706)
- B($1,700.00 x 257.06) + ($2,000.00 x 1731.75) + ($2,000.00 x 97.78)
- C($1,700.00 x 2.5706) + ($4,200.00 x 17.3175) + ($4,200.00 x .9778)
- D($1,700.00 x 257.06) + ($4,200.00 x 1731.75) + ($4,200.00 x 97.78)
Show the answer and explanation
The correct answer is C because the AD/CVD deposit is calculated by applying the applicable ad valorem rates to the invoiced value of each product. The 80 baby crib mattresses (Italian origin) are subject to the Italian rate (257.06%), and the 140 toddler mattresses (Chinese origin) are subject to the Chinese rate (1731.75% for the product category). The formula in C correctly applies these rates to the respective invoiced values. Option A incorrectly applies the Italian rate to both products, B incorrectly uses the Chinese rate for the crib mattresses and combines multiple rates for the toddler mattresses, and D incorrectly applies the Chinese rate to the crib mattresses and uses the wrong decimal format for the rates. 19 CFR 159.41; 19 CFR 159.47.
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