CCS Classification & Tariff Schedules 3 — Questions and Answers
Question 1: Under GRI 2(a), how is an incomplete or unfinished article classified?
- As parts and accessories under Chapter 84 or 85
- As the complete or finished article if it has the essential character of the complete article (Correct answer)
- As raw materials under the relevant commodity chapter
- As waste and scrap under Chapter 26
Correct answer: As the complete or finished article if it has the essential character of the complete article
GRI 2(a) states that an incomplete or unfinished article is classified as the complete article if it already has the essential character of that complete article.
Question 2: A textile product is made from multiple fibers. Under HTSUS textile classification rules, how is the chief weight determined?
- By the fiber present in the greatest quantity by retail value
- By the fiber present in the greatest quantity by weight (Correct answer)
- By the fiber that is listed first in the trade name
- By whichever fiber appears on the outer surface of the fabric
Correct answer: By the fiber present in the greatest quantity by weight
For HTSUS textile classification, the chief weight is determined by the fiber component that exceeds all other single fiber components by weight.
Question 3: What does 'Column 2' in the HTSUS represent?
- The duty rate for goods qualifying under USMCA
- The duty rate applicable to goods from countries not entitled to MFN treatment (Correct answer)
- The special duty rate for goods from developing nations under GSP
- The antidumping duty rate for specific exporters
Correct answer: The duty rate applicable to goods from countries not entitled to MFN treatment
Column 2 of the HTSUS contains the duty rates applicable to goods from countries that are not granted Normal Trade Relations (MFN) status by the U.S.
Question 4: Which HTSUS chapter covers nuclear reactors, boilers, machinery, and mechanical appliances?
- Chapter 73
- Chapter 84 (Correct answer)
- Chapter 85
- Chapter 90
Correct answer: Chapter 84
Chapter 84 of the HTSUS covers nuclear reactors, boilers, machinery, and mechanical appliances and parts thereof.
Question 5: Under the HTSUS, goods classified in heading 9802.00.80 receive what benefit?
- Complete duty-free entry as American goods returned
- Duty exemption on the value of U.S.-fabricated components assembled abroad (Correct answer)
- A reduced tariff under the Generalized System of Preferences
- An exemption from Harbor Maintenance Fee
Correct answer: Duty exemption on the value of U.S.-fabricated components assembled abroad
Heading 9802.00.80 allows duty to be assessed only on the foreign value added, exempting the value of U.S. components from dutiable value.
Question 6: What is the correct classification approach for a 'set put up for retail sale' under GRI 3(b)?
- Classify under the heading that appears last in numerical order among competing headings
- Classify by the component that gives the set its essential character (Correct answer)
- Classify each component separately under its own heading
- Classify under the heading covering the most valuable item in the set
Correct answer: Classify by the component that gives the set its essential character
GRI 3(b) requires that sets put up for retail sale be classified by the component that gives the set its essential character.
Question 7: Which of the following is NOT a valid method CBP uses to determine the classification of imported merchandise?
- Binding ruling requests filed prior to importation
- Protest filed after liquidation of the entry
- Reference to the WCO Explanatory Notes as a supplemental guide
- Mandatory classification by the importer's country of export authority (Correct answer)
Correct answer: Mandatory classification by the importer's country of export authority
U.S. customs classification is determined by U.S. law and CBP; a foreign export authority's classification is not binding on U.S. Customs.
CCS Classification & Tariff Schedules 3
Under GRI 2(a), how is an incomplete or unfinished article classified?