CBP / BPA CBP Trade & Tariff Regulations 1 — Questions and Answers
Question 1: What is the primary legal authority that governs the collection of customs duties by CBP?
- The Immigration and Nationality Act
- The Tariff Act of 1930 (Correct answer)
- The Trade Agreements Act of 1979
- The Customs Modernization Act of 1993
Correct answer: The Tariff Act of 1930
The Tariff Act of 1930 (also known as the Smoot-Hawley Act) is the foundational legislation governing the assessment and collection of customs duties.
Question 2: The Harmonized Tariff Schedule of the United States (HTSUS) is used by CBP officers to perform which function?
- Classify imported goods and determine the applicable duty rate (Correct answer)
- Screen passengers for immigration violations
- Calculate fees for export licenses
- Identify prohibited agricultural products
Correct answer: Classify imported goods and determine the applicable duty rate
The HTSUS provides CBP officers a standardized classification system for all imported goods to determine the correct duty rate.
Question 3: Under CBP regulations, what is the current de minimis threshold below which imported goods are generally exempt from customs duties?
- $200
- $800 (Correct answer)
- $1,000
- $2,500
Correct answer: $800
The U.S. de minimis threshold is $800, meaning shipments valued at $800 or less are generally exempt from duties and taxes.
Question 4: What is the term for the fraudulent practice of shipping goods through a third country to disguise their true country of origin and avoid higher tariffs?
- Tariff engineering
- Customs evasion
- Transshipment fraud (Correct answer)
- Country of origin switching
Correct answer: Transshipment fraud
Transshipment fraud involves routing goods through an intermediate country to falsely represent origin and avoid applicable tariffs or trade restrictions.
Question 5: Which CBP program allows importers to receive advance rulings on tariff classification, country of origin, and valuation before importing goods?
- Customs Trade Partnership Against Terrorism (C-TPAT)
- Binding Ruling Program (Correct answer)
- Importer Self-Assessment (ISA)
- Automated Broker Interface (ABI)
Correct answer: Binding Ruling Program
CBP's Binding Ruling Program allows importers to request official decisions on classification, valuation, or origin before importing, providing certainty and compliance guidance.
Question 6: What is the primary purpose of a CBP Entry Summary (CBP Form 7501)?
- To document the chain of custody for seized goods
- To formally declare imported merchandise and calculate duties owed (Correct answer)
- To apply for a trusted trader certification
- To report suspected smuggling to ICE
Correct answer: To formally declare imported merchandise and calculate duties owed
CBP Form 7501 (Entry Summary) is the official document through which importers formally declare imported merchandise and calculate applicable duties and fees.
CBP / BPA CBP Trade & Tariff Regulations 1
What is the primary legal authority that governs the collection of customs duties by CBP?