CBLE Case Analysis and Interpretation 3

Question 1

A shipment arrives under a TIB (Temporary Importation under Bond). The bond allows 12 months. The importer needs 6 more months. What is the correct procedure?

Accepted Answer

File a request for extension with the port director before the TIB expires

Answer

Simply re-export and re-import the goods to restart the clock

Answer

Convert the TIB to a consumption entry automatically

Answer

File a CF-3461 for informal entry to extend the period

Question 2

An importer uses a foreign trade zone (FTZ) in privileged foreign status. Raw materials entered at 10% duty rate increase to 15% by time of activation. What duty rate applies?

Accepted Answer

10%—the rate at the time of privileged foreign status election

Answer

15%—the rate in effect at the time of activation

Answer

The average of 10% and 15%

Answer

0%—FTZ goods are duty-free until exit

Question 3

A CF-28 is issued and the importer responds with documentation. CBP still believes the value is understated and issues a CF-29. What does the CF-29 represent?

Accepted Answer

A Notice of Action indicating CBP's proposed rate advance or penalty

Answer

A request for additional samples of the merchandise

Answer

A formal seizure notice for the goods

Answer

Authorization to amend the entry without penalty

Question 4

An importer claims goods are of Canadian origin for USMCA but CBP finds the tariff shift from non-originating inputs was not completed. What is the result?

Accepted Answer

The goods fail the tariff shift rule and do not qualify for USMCA preference

Answer

The goods qualify if the regional value content test is met instead

Answer

The importer may refile with a different origin claim

Answer

CBP must verify the producer's facility before ruling

Question 5

A U.S. importer receives a penalty notice under 19 USC 1592 for negligence. The penalty equals 2x the unpaid duties. Under mitigation guidelines, what reduction may apply?

Accepted Answer

Mitigation to 50% of the loss of revenue for a first-time negligence offense

Answer

Full cancellation since negligence is not willful

Answer

Reduction to a maximum of 25% of the penalty

Answer

No mitigation is available for 1592 penalties

Question 6

Goods imported under Chapter 98 as American Goods Returned (HTS 9801.00.10) must meet which condition?

Accepted Answer

The goods must have been exported from the US and be re-imported without enhancement or improvement

Answer

The goods must be returned within 6 months of export

Answer

The goods must be duty-paid at the time of original export

Answer

The goods must be accompanied by a certificate of origin

Question 7

A broker discovers that entries filed 18 months ago used incorrect HTS codes, resulting in underpaid duties. Under the reasonable care standard, what is the best course of action?

Accepted Answer

File a prior disclosure with CBP to limit penalty exposure before CBP discovers the error

Answer

Wait to see if CBP liquidates the entries correctly

Answer

Amend the entries informally through ACE without notifying CBP

Answer

Do nothing since entries liquidated more than 12 months ago cannot be changed