Customs Valuation Principles Flashcards
7 cards from real CCS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Customs Valuation Principles flashcards as text
Under 19 CFR 152.103, royalties and license fees paid by the buyer must be added to transaction value ONLY if they meet what condition?
Answer: They relate to the imported goods AND are a condition of sale
Royalties and license fees are dutiable additions only when they relate to the imported merchandise and the buyer is required to pay them as a condition of the sale.
What does 'price actually paid or payable' include beyond the invoice price?
Answer: All direct and indirect payments from buyer to seller, including assists and proceeds of resale
The price actually paid or payable encompasses all payments made or to be made by the buyer to or for the benefit of the seller, direct or indirect.
A U.S. company imports goods and later sells 10% of net profits back to the foreign supplier as a 'proceeds of subsequent resale' clause. How does CBP treat this?
Answer: It must be added to the transaction value as an indirect payment to the seller
Proceeds of subsequent resale that flow to or for the benefit of the seller are indirect payments and must be added to the transaction value.
Which valuation method is MOST flexible and allows the greatest importer discretion in choosing an appropriate basis?
Answer: Fall-back (residual) method
The fall-back method under 19 USC 1401a(f) allows the use of any reasonable means of valuation consistent with WTO principles when no other method can be applied.
When 'similar goods' are used for customs valuation purposes, how do 'similar goods' differ from 'identical goods'?
Answer: Similar goods perform the same functions and are commercially interchangeable but are not alike in all respects
Similar goods closely resemble and can be commercially substituted for the subject goods but need not be identical in all physical characteristics.
An importer elects to use deductive value instead of computed value. What must the importer do?
Answer: Request the reversal of the order of methods 4 and 5 from CBP in advance
By default, deductive value (method 4) is tried before computed value (method 5), but the importer may request CBP reverse this order.
Which of the following costs is EXCLUDED from dutiable value under U.S. law if separately itemized and identified?
Answer: Charges for construction or assembly performed after importation in the United States
Post-importation assembly or construction costs performed in the U.S. may be excluded if clearly identified and separated from the dutiable cost of the goods.