CCS Trade Agreements & Valuation 3

Question 1

When must CBP apply the deductive value method before the computed value method?

Accepted Answer

Only when the importer cannot provide cost data from the foreign producer

Answer

Under 19 USC 1401a(a)(1), the importer may request that computed value be applied before deductive value; otherwise the statutory hierarchy places deductive value fourth and computed value fifth.

Question 2

Under the deductive value method, which of the following deductions is NOT permitted from the unit price of the imported merchandise?

Accepted Answer

Costs of ocean freight and marine insurance to the U.S. port of entry

Answer

Under deductive value (19 USC 1401a(d)), international freight and insurance incurred after export from the country of exportation are NOT deducted because they were never included in the U.S. sale price used as the starting point.

Question 3

Which element is included in the computed value of imported merchandise?

Accepted Answer

Profit and general expenses of producers in the country of export

Answer

Computed value under 19 USC 1401a(e) includes cost of materials and fabrication, profit and general expenses of the producer, and assists and packing costs.

Question 4

Under the 'fallback' or 'other' method (Method 6) of customs valuation, which approach is explicitly PROHIBITED?

Accepted Answer

Basing value on the highest of two acceptable alternative values

Answer

19 USC 1401a(f)(2) prohibits the fallback method from being based on the higher of two alternative values, arbitrary or fictitious values, domestic selling prices, or minimum customs values.

Question 5

Under the GSP (Generalized System of Preferences), what minimum percentage of the appraised value of an imported product must consist of the cost or value of materials produced in the beneficiary country PLUS direct processing costs?

Accepted Answer

35%

Answer

GSP rules of origin require that at least 35% of the appraised value of the article consist of the cost or value of materials produced in the beneficiary developing country plus direct costs of processing.

(CCS) Certified Customs Specialist Practice Test

(CCS) Certified Customs Specialist Practice Test

CCS Trade Agreements & Valuation 3