CBLE Case Analysis and Interpretation 4

Question 1

An importer enters goods under the HTSUS provision for 'other articles of plastics' at 3926.90.99 (5.3%). CBP reclassifies to 'conveyor belts of vulcanized rubber' at 4010.12.50 (duty-free). Who benefits from this reclassification?

Accepted Answer

The importer benefits from the lower rate, and CBP must refund excess duties paid

Answer

A reclassification to a lower or duty-free rate results in a refund of duties overpaid; the importer may file a protest to obtain the refund if CBP has already liquidated.

Question 2

A shipment of assembled circuit boards enters the US. The boards were designed in the US, components manufactured in Taiwan, assembled in Mexico. Under USMCA, which country is the country of origin for marking purposes?

Accepted Answer

Mexico, the country of last substantial transformation

Answer

For marking purposes, country of origin is determined by the last substantial transformation; assembly in Mexico that creates a new article transforms the origin to Mexico.

Question 3

An importer pays $500,000 for machinery but also pays a $50,000 royalty to a third-party licensor as a condition of the sale. How is the dutiable value calculated?

Accepted Answer

$550,000—the royalty must be added to the transaction value

Answer

Under 19 USC 1401a, royalties paid as a condition of the sale of the imported goods are included in transaction value regardless of who receives them.

Question 4

A protest is filed timely on a liquidation, but CBP denies it. The importer disagrees. What is the next step to contest CBP's decision?

Accepted Answer

File a summons with the Court of International Trade (CIT) within 180 days of protest denial

Answer

After CBP denies a protest, the importer has 180 days to file a civil action with the U.S. Court of International Trade under 28 USC 2636.

Question 5

An entry summary is filed for goods with an invoice value of $800. The importer claims the informal entry threshold applies. What is the current de minimis threshold for informal entries?

Accepted Answer

$2,500 for informal entries and $800 for Section 321 de minimis

Answer

Informal entries apply to shipments valued at $2,500 or less; Section 321 (de minimis) exempts individual shipments of $800 or less from duty entirely.

(CBLE) Customs Broker License Exam Practice Test

(CBLE) Customs Broker License Exam Practice Test

CBLE Case Analysis and Interpretation 4