CBLE Tariff Classification and Valuation 3 — Questions and Answers
Question 1: The 'essential character' test under GRI 3(b) is used to classify:
- Sets put up for retail sale
- Mixtures of substances
- Composite goods consisting of different components
- All of the above (Correct answer)
Correct answer: All of the above
GRI 3(b) applies essential character analysis to mixtures, composite goods, and sets put up for retail sale when classification cannot be determined by GRI 3(a).
Question 2: Under the transaction value method, 'related party' transactions are acceptable when:
- The importer submits a written affidavit of arm's length pricing
- The transaction value closely approximates a test value (Correct answer)
- The related parties are in different countries
- CBP approves the relationship in advance
Correct answer: The transaction value closely approximates a test value
Related-party transaction values are accepted if they closely approximate deductive value, computed value, or the transaction value of identical/similar merchandise sold to unrelated buyers.
Question 3: Which section of the HTSUS covers the legal notes establishing the framework for classification?
- The Appendix to the HTSUS
- Chapters 1–97 with their section and chapter notes (Correct answer)
- Chapter 99 additional U.S. notes
- The General Headnotes only
Correct answer: Chapters 1–97 with their section and chapter notes
The classification framework is established by the section notes and chapter notes embedded within Chapters 1–97, which are legally binding under GRI 1.
Question 4: An importer disputes CBP's classification of imported goods. The correct administrative remedy is to file:
- A petition with the Court of International Trade
- A protest under 19 USC 1514 (Correct answer)
- An application for further review with CBP headquarters
- A request for binding ruling under 19 CFR 177
Correct answer: A protest under 19 USC 1514
A protest under 19 USC 1514 is the administrative remedy to challenge CBP's liquidation decisions including classification and rate of duty.
Question 5: Computed value under 19 USC 1401a(e) is based on the sum of:
- Material costs + general expenses + profit + packing (Correct answer)
- US selling price minus commissions and duties
- Invoice value plus insurance and freight
- Appraised value of identical merchandise
Correct answer: Material costs + general expenses + profit + packing
Computed value equals the cost of materials and fabrication, plus general expenses and profit usually reflected in sales of the same class or kind, plus packing costs.
Question 6: The Explanatory Notes to the Harmonized System are published by which organization?
- World Trade Organization (WTO)
- World Customs Organization (WCO) (Correct answer)
- U.S. International Trade Commission (USITC)
- U.S. Customs and Border Protection (CBP)
Correct answer: World Customs Organization (WCO)
The WCO publishes the official Explanatory Notes to the HS, which CBP treats as persuasive (not legally binding) authority in classification decisions.
Question 7: Under GRI 6, classification within a subheading is determined by:
- GRIs 1–5 applied mutatis mutandis at the subheading level (Correct answer)
- The specific subheading notes only
- The principle of last in numerical order
- Whichever subheading provides the higher duty rate
Correct answer: GRIs 1–5 applied mutatis mutandis at the subheading level
GRI 6 states that classification within subheadings uses the same GRIs 1–5 applied mutatis mutandis, but only subheadings at the same level are comparable.
CBLE Tariff Classification and Valuation 3
The 'essential character' test under GRI 3(b) is used to classify: