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

The hierarchy requires attempting transaction value of identical goods before other alternative methods.

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

The U.S. uses an FOB (origin) valuation standard, so international freight and insurance are excluded from dutiable value.

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

Restrictions on resale territory (other than those imposed by law) can indicate the price is not a 'price actually paid' and may disqualify transaction value.

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

A rebate that is predetermined and determinable at the time of importation may be used to reduce transaction value.

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

Computed value is built up from cost of materials, fabrication, profit, and general expenses for goods of the same class or kind.

(CCS) Certified Customs Specialist Practice Test

(CCS) Certified Customs Specialist Practice Test

CCS Customs Valuation Principles 2