Tariff Classification and Valuation Flashcards
7 cards from real CBLE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Tariff Classification and Valuation flashcards as text
An 'assist' under customs valuation rules includes which of the following provided free of charge by the buyer?
Answer: Tooling and dies used to produce the imported merchandise
Assists include tools, dies, molds, and similar items supplied by the buyer free or at reduced cost for use in producing the imported merchandise, and their value must be added to transaction value.
The HTSUS column 2 duty rate applies to merchandise from countries that:
Answer: Do not have normal trade relations with the US
Column 2 rates (generally very high) apply to goods from countries that have not been granted normal trade relations (NTR/MFN) status with the United States.
When goods of the same description are invoiced at different prices, CBP appraises value based on:
Answer: The price for each lot separately
CBP appraises each lot separately at its own transaction value when identical goods are sold at different prices on the same invoice.
Which classification principle governs when goods are put up in sets for retail sale and cannot be classified by reference to a single heading?
Answer: GRI 3(b) — essential character of the set
GRI 3(b) classifies retail sets by the component that gives the set its essential character, which is often determined by the primary use or the most significant component.
A binding ruling on tariff classification issued by CBP is binding on:
Answer: Only the specific importer who requested it
A CBP binding ruling is binding only on CBP and only with respect to the specific importer who requested it for the described transaction.
The 'fallback' or 'other' method of appraisement under 19 USC 1401a(f) may NOT be based on:
Answer: Arbitrary or fictitious values
The fallback method permits flexible application of the five statutory methods but expressly prohibits arbitrary, fictitious, or minimum customs values.
Under U.S. customs law, 'country of origin' for tariff classification purposes is generally determined by:
Answer: Where the goods were last manufactured or substantially transformed
Country of origin is determined by the 'substantial transformation' test — the country where the goods last underwent a fundamental change in character, name, or use.