CCS Customs Valuation Principles 3

Question 1

Under the deductive value method, what is deducted from the sale price of imported goods sold in the U.S.?

Accepted Answer

Commissions, profit, general expenses, transportation, insurance, and duties after importation

Answer

Deductive value works backward from U.S. selling price by subtracting commissions, profit, general expenses, and post-importation costs including duties.

Question 2

A foreign seller provides 'assists' to a U.S. buyer in the form of free engineering drawings. How does this affect customs value?

Accepted Answer

The value of the assist must be added to the transaction value

Answer

Assists provided free or at reduced cost by the buyer to the seller must be added to the price actually paid to determine transaction value.

Question 3

Which of the following is NOT an example of an 'assist' under U.S. customs law?

Accepted Answer

Advertising and marketing services provided by the buyer in the U.S.

Answer

U.S. advertising and marketing services performed after importation are not assists because they do not benefit the production of the imported goods.

Question 4

What is the significance of 'same class or kind' in the computed value method?

Accepted Answer

Profit and general expenses are based on data from producers of goods in the same class or kind

Answer

The 'same class or kind' standard allows use of profit/expense data from a range of producers, not just the specific seller, to prevent manipulation.

Question 5

An importer declares a value of $10,000 for goods. CBP believes the true value is $15,000. What is the penalty exposure for a negligent undervaluation?

Accepted Answer

Two times the unpaid duties

Answer

Under 19 USC 1592, negligent violations result in penalties of up to two times the unpaid duties.

(CCS) Certified Customs Specialist Practice Test

(CCS) Certified Customs Specialist Practice Test

CCS Customs Valuation Principles 3