Tariff Classification and Valuation Flashcards
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Read the first 7 Tariff Classification and Valuation flashcards as text
Under the General Rules of Interpretation (GRI), which rule applies when goods are prima facie classifiable under two or more headings?
Answer: GRI 3
GRI 3 applies when goods are classifiable under two or more headings, providing three methods to resolve the conflict: specific description, essential character, or last heading in numerical order.
Which transaction value addition is NOT required to be added to the price actually paid or payable under 19 USC 1401a?
Answer: Buyer's foreign agent commissions
Buying commissions paid by the buyer to their agent for representing them in the purchase are not additions to transaction value; only selling commissions are dutiable.
A product is imported as an unassembled machine with all parts present. Under GRI 2(a), it is classified as:
Answer: The complete machine heading
GRI 2(a) provides that incomplete or unfinished articles are classified as the complete/finished article if they present the essential character of the complete article.
The HTSUS chapter notes and section notes have what legal standing?
Answer: They are legally binding and control classification
Chapter notes and section notes in the HTSUS are legally binding and form part of the classification scheme under GRI 1.
When applying the 'deductive value' method under 19 USC 1401a(d), the starting point is:
Answer: The price at which identical goods are sold in the US after importation
Deductive value starts with the unit price at which the imported merchandise is sold in the US in the greatest aggregate quantity, then subtracts certain statutory deductions.
A royalty payment made by the buyer to the seller as a condition of the sale of imported merchandise is:
Answer: Added to the price paid or payable
Royalties and license fees paid as a condition of the sale of the imported merchandise must be added to the transaction value under 19 USC 1401a(b)(1)(D).
Which HTSUS heading covers articles that cannot be classified elsewhere and are imported for research and development?
Answer: 9813.00.20
HTSUS 9813.00.20 provides duty-free treatment under temporary importation bond (TIB) for articles imported for examination, testing, or experimental use.