CBLE Tariff Classification and Valuation 2 — Questions and Answers
Question 1: Under the General Rules of Interpretation (GRI), which rule applies when goods are prima facie classifiable under two or more headings?
- GRI 1
- GRI 3 (Correct answer)
- GRI 5
- GRI 6
Correct 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.
Question 2: Which transaction value addition is NOT required to be added to the price actually paid or payable under 19 USC 1401a?
- Selling commissions
- Packing costs
- Buyer's foreign agent commissions (Correct answer)
- Assists
Correct 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.
Question 3: A product is imported as an unassembled machine with all parts present. Under GRI 2(a), it is classified as:
- Each component under its own heading
- The complete machine heading (Correct answer)
- The heading for the most valuable component
- GRI 6 must be applied first
Correct 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.
Question 4: The HTSUS chapter notes and section notes have what legal standing?
- Advisory only — they guide but do not bind CBP
- They are legally binding and control classification (Correct answer)
- They apply only when GRI 1 fails
- They override the General Rules of Interpretation
Correct 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.
Question 5: When applying the 'deductive value' method under 19 USC 1401a(d), the starting point is:
- The cost of production of the merchandise
- The price at which identical goods are sold in the US after importation (Correct answer)
- The appraised value of similar merchandise
- The constructed value of the goods plus profit
Correct 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.
Question 6: A royalty payment made by the buyer to the seller as a condition of the sale of imported merchandise is:
- Always excluded from transaction value
- Added to the price paid or payable (Correct answer)
- Deducted from the appraised value
- Treated as an assist
Correct 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).
Question 7: Which HTSUS heading covers articles that cannot be classified elsewhere and are imported for research and development?
- 9817.00.96
- 9802.00.80
- 9813.00.20 (Correct answer)
- 9999.00.00
Correct 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.
CBLE Tariff Classification and Valuation 2
Under the General Rules of Interpretation (GRI), which rule applies when goods are prima facie classifiable under two or more headings?