CCS Customs Valuation Principles 2

Question 1

Under the WTO Customs Valuation Agreement, when transaction value cannot be used, what is the FIRST alternative method to apply?

Accepted Answer

Transaction value of identical goods

Answer

Deductive value

Answer

Computed value

Answer

Fall-back method

Question 2

A U.S. importer pays $50,000 for goods plus $3,000 for international freight and $500 for insurance. Under U.S. Customs rules, what is the dutiable value?

Accepted Answer

$50,000

Answer

$53,000

Answer

$53,500

Answer

$50,500

Question 3

Which condition would DISQUALIFY a sale from being used as the basis for transaction value?

Accepted Answer

Sale involves a quota restraint on resale territory

Answer

Buyer and seller are unrelated parties

Answer

Payment made via letter of credit

Answer

Goods are sold for export to the United States

Question 4

An importer receives a year-end rebate from the seller based on total purchase volume. How should this rebate affect customs valuation?

Accepted Answer

It can reduce the dutiable value if it is determinable at time of importation

Answer

It never affects dutiable value because it occurs after importation

Answer

It always reduces the dutiable value retroactively

Answer

It must be reported as a separate customs entry

Question 5

What is 'computed value' in U.S. customs valuation?

Accepted Answer

Cost of production plus profit and general expenses typically reflected in sales of same class

Answer

The value based on the price of identical goods sold in the U.S.

Answer

The appraised value determined by CBP independently

Answer

The transaction value adjusted for freight and insurance

Question 6

Which of the following is included in the transaction value under 19 USC 1401a?

Accepted Answer

Packing costs incurred by the buyer

Answer

Duties and taxes paid in the country of export

Answer

Post-importation warranty services paid separately

Answer

Storage costs at U.S. port of entry

Question 7

When related-party transaction value is under CBP review, which test can the importer use to justify acceptance of the declared value?

Accepted Answer

The 'circumstances of sale' test or the 'test values' approach

Answer

The 'arm's length' test only

Answer

The 'deductive value' test only

Answer

The 'profit margin' test