CBLE Case Analysis and Interpretation 5

Question 1

A shipment of men's woven cotton shirts arrives with a commercial invoice showing $15/unit.
CBP suspects undervaluation and finds identical goods sell for $22/unit.
Which valuation method may CBP apply?

Accepted Answer

Identical merchandise value under 19 USC 1401a(c)

Answer

Computed value under 19 USC 1401a(e)

Answer

Deductive value under 19 USC 1401a(d)

Answer

CBP must accept the invoice value unless fraud is proven

Question 2

An importer of record fails to pay estimated duties within 10 working days of entry summary filing. What is the consequence?

Accepted Answer

Interest accrues on the unpaid duties and the bond may be called

Answer

The entry is automatically cancelled and goods are seized

Answer

A 10% late payment penalty is assessed immediately

Answer

CBP issues a CF-29 requiring immediate full payment

Question 3

A broker files an entry and the goods are examined by CBP. Examination reveals a TSCA (Toxic Substances Control Act) violation. Who bears primary responsibility?

Accepted Answer

The importer of record, who certified TSCA compliance on the entry

Answer

The customs broker who filed the entry

Answer

The foreign exporter who shipped the goods

Answer

CBP, since they cleared the shipment initially

Question 4

A shipment is selected for an intensive exam (X-ray and physical). Exam fees are billed to the importer. The goods are ultimately released. Can the importer recover exam costs?

Accepted Answer

No, exam costs are the importer's responsibility regardless of outcome

Answer

Yes, if no violations are found, CBP must refund exam costs

Answer

Yes, if the exam takes more than 5 business days

Answer

No, unless the exam was triggered by a competitor's tip

Question 5

A CF-4647 (Notice to Mark or Notice to Redeliver) is issued. The importer disagrees with the marking requirement. What is the importer's most immediate remedy?

Accepted Answer

Comply with the marking requirement or post a marking bond pending protest

Answer

File a CIT lawsuit immediately to stay the redelivery demand

Answer

Apply to the FTZ for exempt status to avoid marking

Answer

Request a binding ruling to supersede the CF-4647

Question 6

Under the drawback rules, an exporter claims manufacturing drawback on goods that used 100 lbs of imported steel but the exported product only contains 80 lbs. What is the maximum drawback amount?

Accepted Answer

99% of the duties paid on 80 lbs of steel actually used in the exported product

Answer

99% of the duties paid on the full 100 lbs imported

Answer

100% of the duties paid on 80 lbs used

Answer

Drawback is disallowed because 100% of the imported material was not used

Question 7

An entry is flagged by the Automated Targeting System (ATS) for national security review. CBP issues a 'Do Not Load' message to the foreign port. What authority enables this action?

Accepted Answer

The 24-hour advance manifest rule under 19 CFR 4.7b allowing pre-departure targeting

Answer

The Customs Modernization Act requiring all cargo to be screened

Answer

The Trade Facilitation and Trade Enforcement Act mandatory hold provision

Answer

OFAC regulations authorizing blocking of suspect shipments