April 2018 Customs Broker Exam

Correct answer: D  · Authority: Time of Entry 19 CFR 141.68 and 19 CFR 151.69

The correct answer is D) 19 CFR 141.68, as this section explicitly defines the "time of entry" in multiple scenarios, including when entry documentation is filed without an entry summary, and when merchandise is released or arrives within port limits. This determination is critical for applying antidumping (AD) and countervailing duties (CVD) because the applicable investigation or order depends on the time the merchandise enters the U.S. The other options, such as 19 CFR 142.3 (which addresses informal entries) or 19 CFR 159.10 (which covers AD/CVD orders themselves), do not define the "time of entry" as directly or comprehensively as 19 CFR 141.68.

Correct answer: C  · Authority: 19 CFR 152.103 (a) and (b)

The correct answer is C because transaction value includes the price actually paid or payable plus selling commissions, royalties, assists, packing costs, and proceeds, as explicitly stated in 19 CFR 152.103(b), which adjusts the transaction value to include certain expenses directly related to the sale. Options A and E incorrectly include "buying commissions" or "freight costs," which are excluded per Example 4 in the cited authority, which explicitly excludes C.I.F. charges like ocean freight. Option D erroneously adds "U.S. inland freight," a cost not mentioned in the text. Option B incorrectly includes "buying commissions," which are not part of the transaction value adjustments outlined in the examples or the rule.

Correct answer: C  · Authority: 19 CFR 24.3(e)

The correct answer is C because 19 CFR 24.3(e) explicitly states that bills resulting from dishonored payments, such as checks or ACH transactions, are due and payable within 15 days of the bill’s issuance. Other options (A, B, D, E) are incorrect because they refer to timeframes applicable to non-dishonored bills, which are due within 30 days, as also stated in the same section. The regulation does not support any other timeframe for dishonored bills.

Correct answer: D  · Authority: 19 CFR 24.23

The correct answer is D because the total fees and duties include the 2.4% ad valorem duty ($5,798.00 × 2.4% = $139.15), the Merchandise Processing Fee (MPF) which is capped at $25.00 (not the calculated $20.08), and the antidumping duty (ADD) at 68.89% ($5,798.00 × 68.89% = $3,994.24). These components sum to $4,158.39. Option A incorrectly applies the MPF without the cap, B omits the duty and MPF, C miscalculates the ADD, and E only includes the MPF. The cited authority (ACE Entry Summary Instructions) explicitly states the MPF minimum and the ADD calculation method.

Correct answer: A  · Authority: 19 CFR 152.103(b)

The correct answer is A) $530. Under 19 CFR 152.103(b), the customs value includes the CIF price of $500 (1,000 batteries at $0.50 each) plus the assist of $40 for the polythene and cardboard provided by Company A, totaling $540. The $10 in freight and insurance costs are subtracted because the customs value in the U.S. is based on FOB (free on board) value, which excludes these costs. Option B ($500) ignores the assist, and option D ($540) fails to subtract the freight and insurance, which are not part of the FOB value. Other options either miscalculate the assist or misapply the valuation rules.