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82 Cards in this Set
- Front
- Back
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Which of the following is NOT considered part of the "Customs Territory of the United States"?
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A. Alaska
B. New Mexico C. District of Columbia D. U.S. Virgin Islands E. Puerto Rico |
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Which of the following ports is NOT a Customs service port?
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A. Dallas
B. El Paso C. Houston D. Brownsville E. Laredo |
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Which Service Port has a Drawback unit/office?
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A. Boston
B. Detroit C. Houston D. Honolulu E. Miami |
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Which location does NOT have a preclearance office?
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A. Kingston, Jamaica
B. Vancouver, British Columbia C. Edmonton, Alberta D. Orangestad, Aruba E. Freeport, Bahamas |
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Sharon exports dolls made in the U.S. While the goods are in the process of being transported from the U.S. to Italy to be sold, Sharon receives a phone call from her foreign buyer in Italy. The foreign buyer tells her he is going bankrupt and not to send the dolls. Sharon promptly calls the carrier and arranges for the return of the dolls. The dolls never left the custody of the carrier and on October 12th they are returned to Sharon in the U.S. as undeliverable articles. Which of the following options is correct?
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A. Sharon must file a consumption entry for the dolls.
B. Sharon can informally enter the dolls on a baggage declaration. C. Sharon must enter the goods as American goods returned. D. Sharon must enter the merchandise as a warehouse entry until she receives a certificate of origin. E. Sharon does not have to make entry because the articles are exempt from entry. |
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Which of the following is NOT evidence of the right to make entry?
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A. A bill of lading
B. An extract of a bill of lading C. A carrier’s certificate D. A blanket carrier’s release E. A copy of an invoice |
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Powers of attorney issued by a partnership shall be limited to a period not to exceed from the date of execution.
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A. One year
B. Five years C. Two years D. 120 days E. 180 days |
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The Walker Company, a major shoe importer, imported shoes on October 28th, and filed a CF-3461 on October 30th. The entry was processed on October 31st and merchandise was released on November 1st. The entry summary must be filed within:
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A. 10 working days from the date of importation.
B. 10 calendar days from the date of entry. C. 10 calendar days from the date of filing the CF-3461. D. 10 calendar days from the date of processing. E. 10 working days from the date of release. |
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Merchandise is exported from Germany on September 29 and arrives in the port of New York on October 1. An entry is filed on October 2, and on October 6 the entry summary is filed with the appropriate duties and taxes. Which of the following determines the rate of duty that applies?
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A. The date of liquidation
B. The date of export on September 29 C. The date of importation on October 1 D. The date the entry is filed on October 2 E. The date the entry summary is filed on October 6 |
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A shipment of tables was found to be not legally marked with the proper country of origin upon examination at the pier. The port director can demand redelivery of this merchandise within how many days?
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A. 10 days from the date the merchandise enters the Customs territory
B. 30 days from the date of entry C. 30 days from the date of export D. 90 days from when the merchandise is found to be improperly marked E. The port director cannot demand redelivery. |
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An importer imports merchandise and files a “live” entry, i.e., entry summary documentation is filed and estimated duties are deposited prior to release. The port director may waive the requirement for surety or cash deposit on the bond in which of the following circumstances?
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A. The importer is related to the foreign seller and consequently, questions have been raised about the applicability of the transaction value.
B. The merchandise is subject to quota. C. The importer is on Customs “sanctions list” for delinquent payment of duties, taxes and fees. D. The importer has received several requests for redelivery on prior shipments of similar merchandise. E. The merchandise is valued at $2,500 and is the subject of a classification ruling issued by Customs. |
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Under certain circumstances, the port director may require that the entry summary documentation be filed and the estimated duties be deposited at the time of entry and before the merchandise is released. Which one of the following circumstances is NOT justification for such a requirement?
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A. An importer has not legally marked his merchandise.
B. An importer has repeatedly failed to file timely entry summary documentation without justification. C. An importer has repeatedly delivered entry summary documentation, which is incomplete or contains erroneous information. D. An importer is substantially or habitually delinquent in the payment of Customs bills. E. An importer has not taken prompt action to settle a claim for liquidated damages issued for failure to file entry summary documentation timely. |
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A new business, Tide End Town, Inc., imports its first shipment of upscale yachting wear manufactured in England. A single entry bond secures the entry. Tide End Town, Inc., files the entry summary 12 working days after the time of entry, which was the date the merchandise, was released by Customs. Customs issues a demand for liquidated damages for failure to file entry summary timely. The demand for liquidated damages will be issued in what amount?
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A. Two times the bond amount.
B. Three times the bond amount. C. One times the bond amount. D. Half the bond amount. E. Five times the bond amount. |
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Fleetwood Air Express is an express consignment operator and a licensed broker. Fleetwood Air Express is the nominal consignee of several different shipments of similar merchandise going to multiple ultimate consignees. Fleetwood wants to file one consolidated entry summary for these shipments. Which one of the following circumstances will PRECLUDE the broker from filing a consolidated entry summary?
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A. The shipments covered by the consolidated entry summary were imported on different days.
B. Each item on the consolidated entry summary is itemized as to each category of merchandise by HTSUSA, to the ten digit level. C. The merchandise covered by the consolidated entry summary was released on the same day under special permits for immediate delivery. D. The merchandise was delivered by different land carriers and the information pertaining to each carrier covering the shipments is shown in the consolidated entry summary. E. A separate listing of each ultimate consignee’s merchandise is included on the consolidated entry summary. |
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An application for special permit for immediate delivery supported by proper documentation should be made on which of the following Customs forms?
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A. CBP 3461
B. CBP 3561 C. CBP 7501 D. CBP 7502 E. CBP 7512 |
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Carla, an importer, has had her Immediate Delivery privileges revoked. Carla contacts Jim of Smart Brokers. Carla asks Jim to file Immediate Delivery entries on Carla’s behalf under Smart Brokers name, bond and filer code. Which of the following is correct?
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A. Jim can file the Immediate Delivery entry on Carla’s behalf using Smart Brokers name, bond, and filer code.
B. Jim cannot file the Immediate Delivery entry on Carla’s behalf using Smart Brokers name, bond, and filer code. C. Jim can file the Immediate Delivery entry on Carla’s behalf, but only if Carla’s name, bond, and filer code are used. D. Jim cannot file the Immediate Delivery entry on Carla’s behalf, only the importer of record may file an Immediate Delivery entry. E. Jim can file the Immediate Delivery entry on Carla’s behalf using Smart Brokers name, bond, and filer code, but only with a valid Power of Attorney. |
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A new broker becomes an ABI participant. After the first year, due to personnel turnover, he begins having problems with his ABI performance and is unable to maintain a high quality level of data transmission. After detecting this problem, the Director of Customs’ User Support Services Division will do which one of the following?
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A. Notify the participant electronically and in writing of any actions to place them on probation, granting them 15 days to respond.
B. Notify the participant in writing of 30-day suspension, granting them 30 days to respond. C. Notify the participant electronically of any action of probation, granting them 45 days to respond. D. Notify the participant in writing of immediate suspension of ABI privileges, granting them 10 days to respond. E. Notify the participant electronically that it will be placed on indefinite sanction, granting them 90 days to respond. |
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Which criteria below is NOT an eligibility requirement for remote location filing (RLF)?
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A. RLF entry must be secured with a continuous bond
B. The licensed broker must have a national permit C. The licensed broker or importer of record must be operational in the Electronic Invoice Program prior to applying for RLF D. The licensed broker must submit line release or immediate deliver entries under RLF E. The licensed broker or importer of record must be operational on the Automated Broker Interface (ABI) |
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A shipment of merchandise valued between _____ and _____, which qualifies for informal entry may be entered, using reasonable care, by the owner or purchaser of the shipment or, when appropriately designated by the owner, purchaser, or consignee of the shipment, a Customs broker.
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A. $0 and $200
B. $100 and $1,000 C. $200 and $1,000 D. $200 and $2,000 E. $200 and $2,500 |
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Which of the following merchandise is NOT eligible for appraisement entry?
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A. Articles sent by persons in foreign countries as gifts to persons in the United States
B. Merchandise damaged on the voyage to the United States because of improper storage by the shipper C. Merchandise recovered from a wrecked or stranded vessel D. Tools of trade of a person arriving in the United States E. Secondhand articles whose value cannot be declared |
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John Jones is a client of Swift Brokers, Inc., a licensed broker. Mr. Jones pays the duties assessed on the merchandise he imports by checks made payable to the U.S. Customs Service. The broker delivers the checks to Customs. Two of Mr. Jones’ checks have bounced in the preceding 12-month period. Mr. Jones will be required to do which one of the following?
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A. Stop importing merchandise for a 30-day period.
B. Use a credit card to pay for duties assessed on future transactions. C. Make electronic payments through Automated Clearinghouse. D. Pay a $100 penalty. E. Pay by certified check, money order or cash for each subsequent payment. |
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The maximum merchandise-processing fee that can be collected for one automated formal entry or release is?
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A. $425.00
B. $485.00 C. $455.00 D. $495.00 E. $475.00 |
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The ad valorem merchandise-processing fee is assessed on which of the following?
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A. Products of the insular possessions of the United States
B. Articles returned from space within the purview of section 484a of the Tariff Act of 1930 C. Merchandise imported by mail D. Photographic films and dry plates manufactured in the United States (except motion picture films to be used for commercial purposes), whether developed or not E. Products of beneficiary developing countries |
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Commercial cargo unloaded from a commercial vessel is subject to the harbor maintenance fee in which of the following situations?
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A. The shipment arrived at the Port of Charleston, South Carolina, and is entitled to be entered under informal entry procedures.
B. The shipment arrived in Bangor, Maine, and consisted of fish caught and not previously landed on shore. C. The shipment contained auto parts that were imported at Escanaba, Michigan. D. The cargo entered the United States in bond for transportation and direct exportation to Japan. E. The cargo arrived in the Port of Los Angeles, California, and consisted of humanitarian relief destined for Mexican earthquake victims donated by a “for-profit” corporation. |
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Which of the following is true about a Harbor Maintenance Fee (H.M.F.)?
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A. It is a port use fee of 0.123% collected by U.S. Customs on commercial cargo loaded on or unloaded from commercial vessels.
B. B) It is a port use fee of 0.125% collected by U.S. Customs on commercial cargo loaded on or unloaded from commercial vessels. C. It is a port use fee of 0.21% collected by U.S. Customs on commercial cargo loaded on or unloaded from commercial vessels. D. It is a port use fee of 1.25% collected by U.S. Customs on commercial cargo loaded on or unloaded from commercial vessels. E. E) It is a port use fee of 12.5% collected by U.S. Customs on commercial cargo loaded on or unloaded from commercial vessels. |
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Which of the following ___ items would be exempt from the requirement that an ISF be filed?
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A. Oil imported in a tankers
B. Goods imported by a branch of the U.S. military C. Goods moving through the U.S. on a T&E, destined for Mexico D. Personal effects E. Goods being delivered to a FTZ |
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If an ISF is submitted and the shipment is later diverted to Europe for importation:
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A. There is no further obligation by the party who submitted the ISF as the ISF will expire in 30 days
B. A withdrawal of the ISF must be submitted to CBP that includes a reason for the withdrawal C. C) An updated ISF must be filed showing the information for the parties that will be receiving the goods in Europe D. The ISF will expire in 45 days as the vessel will not arrive in the Customs Territory of the United States. E. The shipping company must file a new course with CBP and the party that submitted the ISF |
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To satisfy the data element requirement for “Importer of Record” on a consumption entry:
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A. The ISF importer’s identification can always be used
B. B) The customs broker’s number must be used if the broker will be making the entry under his own bond C. The identification number for the owner of the goods can be used whenever there is no actual sale D. When it is not known who will be liable for the payment of duties, you are required to show the identification number for the party exporting the goods to the U.S. E. The consignee’s number may be used if the Importer of Record is not known |
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The following elements of the ISF are flexible:
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A. A) Seller, Manufacturer, Ship to party, Commodity HTSUS Number
B. Manufacturer, Country of Origin, Ship to party, Buyer, C. C) Manufacturer, Container Stuffing Location, Buyer, Commodity HTSUS Number D. Manufacturer, Ship to party, Country of origin, Commodity HTSUS number E. Manufacturer, Buyer, Seller, Country of Origin |
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An importer does not have a bond meeting the requirements of 19 CFR 113 covering ISF importations.
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A. The importer must obtain an annual bond satisfying the appropriate ISF provisions of 19 CFR 113 prior to its initial ISF filing
B. The importer must obtain a single transaction bond satisfying the appropriate ISF provisions of 19 CFR 113 prior to the ISF filing C. The importer may obtain either a single transaction bond or an annual bond satisfying the provisions of 19 CFR 113 prior to the goods being entered for consumption D. The importer need not get its own bond if it uses a properly bonded customs broker willing to use its own bond to cover the ISF filing. E. The importer does not need a bond for the ISF filing. |
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Which ONE of the following is NOT legal evidence of liquidation?
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A. Release of the merchandise by the Postmaster under a free mail entry.
B. CF-4333-A Courtesy Notice of Liquidation. C. Bulletin Notice of Liquidation posted or lodged in the Customhouse. D. Release of the merchandise by Customs under a free informal entry. E. Suitable printed statement appearing on the receipt issued for duties collected for an informal entry. |
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An incorporated import/export company imports some merchandise and the formal entry is filed on July 1, 2003. Which of the following statements is true regarding the legal date of liquidation?
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A. The entry will liquidate on the date posted on the bulletin notice of liquidation.
B. The date the Courtesy Notice, Customs Form 4333-A is received by the filer will indicate the final liquidation date. C. Liquidation will occur 120 days after the entry date, or approximately December 1, 2003. D. The final liquidation will occur the date the duties are deposited. E. The date of liquidation will be the date printed on the receipt issued to the filer for duties collected. |
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Which of the following is NOT a valid reason for liquidation of an entry to be extended?
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A. Customs determines that it needs more supporting documentation from the importer to verify that commissions are buying commissions, as claimed by the importer.
B. The importer requests an extension in writing, stating that he is waiting for important documents from the seller of the merchandise, which have just been found after a lengthy search and which will clear up a valuation discrepancy that appears on the invoice. C. The importer requests an extension in writing, explaining that Customs is reviewing issues similar to those involved in its unliquidated entry. D. Customs needs more time to go over the entry information submitted by the importer. E. Customs needs more information about the classification of the merchandise. |
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Abara Industries imports industrial ceramics from Switzerland. Abara Industries has hired you as its broker. Abara Industries wants to know which exchange rates will attach to its imports for currency conversion purposes. Which ONE of the following statements would be correct advice to give to your client?
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A. The exchange rate may be determined by referring to the Harmonized Tariff Schedule.
B. The certified daily rate shall be used in connection with merchandise exported on such day, if the rate for the date of exportation varies by 5 percent or more from the certified quarterly rate. C. The proclaimed rate shall be used if it varies by 5 percent or more from the certified daily rate for the date of exportation. D. The certified quarterly rate shall be used at all times, because Switzerland is a country for which the quarterly rate is certified. E. The exchange rate shall be pegged to the date of importation. |
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Which date is used when converting foreign currency?
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A. Date merchandise is imported
B. Date merchandise is sold C. Date monies are transferred from the buyer to the seller D. Date the entry summary is filed and duties are paid E. Date merchandise is exported |
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Merchandise transported in-bond by land, except transit air cargo provided for in 19 CFR 122.118, destined to a final port in the U.S., shall be delivered to Customs at the port of destination within how many days after the receipt by the forwarding carrier at the port of origin?
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A. 5 days
B. 10 working days C. 30 days D. 45 days E. 60 days |
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Upon receipt of an in bond shipment at the port of destination, the bonded carrier shall surrender the in bond manifest and notify the port director of merchandise arrival within which of the following?
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A. No more than 2 working days after the arrival of any portion of the in bond shipment
B. No more than 2 working days after the departure of the in bond shipment C. No more than 5 working days from the date of arrival D. No more than 5 working days from the date of exportation E. No more than 30 working days from the date of arrival |
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Your brokerage firm prepares an immediate transportation entry (I.T.) with the port of delivery as New York. After receiving authorization from U.S. Customs for the New York movement, and while the merchandise was in transit, the importer tells you that he sold the merchandise to a Customer in Miami. To facilitate delivery to Miami which of the following is the correct course of action?
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A. Cancel the in bond document
B. Return the merchandise to the port of arrival and file a new immediate transportation entry C. Tell the importer that he needs to wait until the merchandise is delivered in New York and then find a new alternative D. Tell the importer that diversion of an in bond shipment is never authorized by Customs E. Move the merchandise directly to Miami using the same document |
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A shipment of precision tools is imported in early February. No entry is filed and the tools are placed in general order. In July, just after the expiration of the general order period, the tools are transported in bond under an immediate transportation entry to another port. Which ONE of the following entry types MUST be filed at the destination port?
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A. Entry for consumption.
B. Entry for rewarehouse. C. Entry for exportation. D. Entry for immediate transportation without appraisement. E. Entry for warehouse. |
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The minimum quantity of packages in a shipment to be examined is:
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A. Not less than 3 packages of every 20 packages of merchandise
B. Not more than 1 package of every 10 packages of merchandise C. Not less than 1 package of every 10 packages of merchandise D. Not more than 5 packages of every 20 packages of merchandise E. Customs never examines packages in a shipment |
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Which one of the following conditions need not be met when examination is elsewhere than at place of arrival or public stores?
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A. Packages must be corded and sealed before removal from the place of arrival
B. A bond, in accordance with CR 113.62, must be posted before removal of the packages for examination elsewhere. C. The importer shall pay any additional expenses for Customs officers if the place of inspection is outside the limits of a port of entry. D. A Custom seal must be placed on the conveyance taking the packages from the place of arrival to the alternate place of inspection. E. The importer shall bear the expense of preparing the packages for inspection and the closing of the packages. |
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The time of inspection of packages will be:
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A. After arrival in the Customs Territory of the United States but before entry is made.
B. After the release of the packages by Customs to the importer of record C. Within 20 days of the arrival of the packages within the Customs Territory of the United StatesD. Customs will wait until the packages are on the shelve at a mass merchandiser like Target E. After entry is made by the importer of record but before release of the packages into the Customs Territory of the United States |
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Which of the following is NOT an option available to an importer when merchandise is imported in excess of an absolute quota?
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A. Make entry at the higher duty rate
B. Place it in a foreign trade zone C. Enter it in a bonded warehouse D. Export it under Customs supervision E. Destroy it under Customs supervision |
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For the purposes of quota, the time of presentation is which of the following?
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A. The acceptance of an entry/entry summary in proper form
B. The time the ship enters the port limits C. At the end of the business day when the entry has been filed D. When the merchandise is released E. The date of export |
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A quota category which has closed will be opened again shortly. It is anticipated that the quota will be filled at the opening of the quota period. If a preliminary review has not been submitted, what is the correct time frame for presenting the entry summaries or withdrawals for consumption?
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A. No earlier than 12:00 Noon Eastern Standard Time in all time zones
B. No earlier than 12:00 Noon Mountain Standard Time in all time zones C. No earlier than 8:00 A.M. Eastern Standard Time in all time zones D. No earlier than 8:00 A.M. Pacific Standard Time in all time zones E. No earlier than 12:00 Noon Pacific Standard Time in all time zones |
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Tina files a consumption entry for perishable goods that is subject to absolute quota, electing immediate delivery on Customs Form 3461. She files her entry on January 1 and her merchandise is released on January 2nd. The quota category for the merchandise Tina is importing closes on January 4th. Tina files her entry summary with payment of the applicable duties on January 10th. Which of the following actions is correct?
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A. Tina must file a corrected consumption entry and pay a higher rate of duty.
B. Tina must file a temporary importation under bond entry because her merchandise was released before the quota category closed. C. Tina must redeliver the merchandise, pay a higher rate of duty, and file a revised consumption entry. D. Tina must file a warehouse entry, export, or destroy the merchandise. E. Tina must pay the estimated duties, taxes, and fees; and destroy the merchandise. |
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For importations by mail, any packages containing merchandise subject to an absolute quota that arrive after the quota is filled shall be________
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A. Returned to the postmaster for return to the sender immediately as undeliverable mail.
B. Held at the mail facility until the quota opens.C. Destroyed under Customs supervision. D. Held at the mail facility until the importer decides what action to take. E. Held by Customs for 90 days and then destroyed if no action taken by the importer. |
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Peter Transport, Inc., a bonded cartman, is being audited by U.S. Customs for irregular deliveries incurred during Fiscal Year 01 and 02. During the process the auditors find out that Peter Transport has insufficient bond coverage. U.S. Customs sends written notice of the deficiency to the cartmen and requests additional bond coverage. How many days does Peter Transport, Inc. have to remedy the deficiency?
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A. 15 days from the date of notification
B. 30 days from the date of notification C. 60 days from the date of notification D. 15 days from the date of bond termination E. 30 days from the date of bond termination |
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A bond rider may be used to make all but which of the following changes to a continuous basic importation bond?
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A. Trans Rail Pacific Corporation, the principal, changes its name to TRP Corporation.
B. Jane Jones, the principal, decides to operate her business under the trade name of JJ imports. C. ABC Motors, Inc., the principal, closes down an unprofitable unincorporated division of its company, and takes action to have the division’s name removed from the bond. D. Jones Corporation, the principal, merges with a competitor, Smith Inc., to form a new corporation, Jones-Smith, Inc. E. John Doe, the principal, changes his business address from 33 Main Street to 735 Market Place. |
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Jane Smith decides to request the termination of her basic importation bond. She writes a letter to the port director requesting termination but she forgets to include an effective termination date. Customs will do which of the following?
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A. Process immediately upon receipt
B. Return the letter and request a termination date C. Terminate the bond the day following the date of receipt by Customs D. Terminate the bond the 5th business day following the date of receipt by Customs E. Terminate the bond the 10th business day following the date of receipt by Customs |
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Which of the following may be listed as co-principals on a bond?
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A. XYZ, Inc. and an unincorporated division of XYZ, Inc.
B. John Smith, an individual, and J&J, a partnership C. RTY, Inc. and JKL, Inc., both subsidiaries of CVB, Inc. D. J&C, a partnership, and AGJ, Inc. E. GHT, Inc., and Mary Baker, an individual |
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A principal on a basic importation and entry bond agrees to all EXCEPT which of the following conditions?
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A. Redeliver merchandise on demand by Customs
B. Mark merchandise to bring it into compliance with marking laws C. Hold merchandise at the place of examination until it is properly released D. Repay any drawback erroneously received under accelerated payment procedures E. Deposit in a timely manner duties, taxes, and charges imposed at the time of release |
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Where goods are initially detained by Customs as possibly piratical and the copyright owner fails to file demand for exclusion and a bonds the goods will:
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A. Be seized as piratical.
B. Be released to the importer. C. Be held pending determination as to infringement. D. Be released for exportation only. E. Be forfeited. |
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Customs detains an imported article bearing a copying or simulating trademark. The importer has 30 days to establish the existence of certain qualifying circumstances that would allow the article to be entered. Which one of the following is NOT a qualifying circumstance?
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A. The merchandise is imported by the recordant of the trademark or trade name or his/her designate.
B. The articles of foreign manufacturer bear a recorded trademark and the one-item personal exemption is claimed and allowed under CFR 148.55 of the Customs regulations. C. The objectionable mark is removed or obliterated by grinding off the imprinted trademarks.D. The recordant gives written consent to the importation, and such consent is furnished to Customs. E. The importer establishes that he/she had no knowledge of the existence of the copying or simulating trademark prior to the article’s importation. |
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Which of the following is provided to the trademark owner where goods are detained as gray market?
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A. Name and address of manufacturers
B. Name and address of importer. C. Name and address of exporter. D. Description of merchandise. E. Value of goods. |
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The importation into the U.S. of viruses, serums, toxins and analogous products for use in the treatment of domestic animals requires that the importer holds a permit (covering the specific product) from which authority?
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A. The Food and Drug Administration
B. The National Institute of Health C. The Centers for Disease Control and Prevention D. The Department of Agriculture E. The Pennsylvania Department of Agriculture |
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The importation of all of the following is prohibited, EXCEPT?
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A. White phosphorous matches
B. Merchandise manufactured using convict labor C. A 2000-year-old coin stolen from the Iraqi National Museum collection in September 2004 D. Articles subject to the Toxic Substances Control Act E. Counterfeit U.S. coins |
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A woven 100% silk handkerchief of square construction, each side measuring 65 centimeters, is imported into the United States from Italy. The fabric used to make the handkerchiefs was formed in Korea. The fabric was then sent to Uzbekistan where it was dyed. Subsequently, the fabric was sent to Hong Kong where it was cut into components. The components were sent to China where they were sewn into handkerchiefs. Next, the handkerchiefs were sent to Italy where they were embroidered. Which ONE of the following is the correct country of origin of the handkerchiefs?
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A. Italy
B. Korea C. Uzbekistan D. Hong Kong E. China |
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A shipment of sardines is being imported by the CMC Company for use in their stores nationwide. The sardines are caught by Norwegian factory ships and shipped to Denmark where they are frozen. They are shipped overseas to Mexico, via a Swedish shipping firm, where they are prepared by being cooked, soaked in olive oil, frozen, and packed in air tight containers. They are then shipped to New York via ocean freight. While in route the ship runs into a hurricane and is forced to dock in Bermuda. Much of the freight that they were carrying was damaged by salt water. The CMC Company contracts with a firm in Bermuda to determine if the sardines are still fit for human consumption. The firm determines that 40% of the shipment of sardines has been badly damaged. The CMC Company sells that 40% to a pet food company for use in their new dog food. The remaining sardines continue onto New York. What is the correct country of origin of the remaining 60% imported by the CMC Company?
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A. Bermuda
B. Denmark C. Mexico D. Norway E. Sweden |
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Younkin’s Hikers wants to begin importing backpacks made from nylon and polyester woven material. The nylon fabric is from Taiwan and the polyester fabric is from Macau. The backpacks will also include a mesh netting which is made in Thailand. All of the materials will be exported to China where they will be cut into components. The components will be shipped to Hong Kong where they will be assembled into backpacks and packed and shipped to the United States. Which ONE of the following is the correct country of origin for the backpacks?
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A. China
B. Hong Kong C. Taiwan D. Macau E. Thailand |
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Fish pellets classified in 2301.20 of Norwegian origin; bones classified in 0506.90 of Brazilian origin; and animal products classified in 0511.99 of German origin are imported into Canada where they are mixed together into animal fertilizer and correctly classified under 3101. A NAFTA certificate of origin is completed and signed when the animal fertilizer is imported into the United States. For marking purposes, which country of origin is required on the animal fertilizer?
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A. Brazil
B. Canada C. Germany D. Norway E. USA |
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Josie has decided to start an importing business. She can’t decide which product she would like to import but she wants to take advantage of NAFTA. Which ONE of the following is a good of a NAFTA country?
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A. Asparagus grown and harvested in Belize and packed in Mexico
B. Tuna caught on a Japanese registered and flagged vessel and packaged in a plastic bag on a Mexican registered and flagged factory ship C. Sheep born in Chile and raised in Mexico D. Gold mined in Columbia with Mexican mining equipment E. Abalone taken by a Mexican registered and flagged vessel from the seabed in Ecuadorian waters with Ecuador’s permission |
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Ken of North Dakota sends a shipment of wood to Guam where it is cut into boards. The boards are sent to Malaysia where they are sanded. From Malaysia the sanded boards are sent to the Virgin Islands where they are varnished and finished. From the Virgin Islands the finished boards are sent to Bruce in Puerto Rico. Bruce substantially transforms the boards into tables and sends the tables to Ken. Bruce asks Ken how the tables should be marked for country of origin purposes. Which one of the following is correct?
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A. Country of origin Malaysia
B. No country of origin marking is required because the tables are products of the US C. Country of origin Guam D. No country of origin marking is required because the tables are products of Malaysia E. Country of origin Virgin Islands |
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Phil is importing 14 kt gold cuff links and asks his broker the country of origin marking law requirements for this article. Which one of the following is NOT a requirement for proper country of origin marking of the cuff links?
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A. The article must be marked in a conspicuous place.
B. The article must be indelibly marked. C. The article must be marked using die stamping, cast-in-the-mold lettering, etching or engraving. D. The article must be legibly marked. E. The article must be marked as permanently as the nature of the article will permit. |
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Which of the following would NOT be considered a violation of the country of origin marking statute, 19 USC 1304?
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A. The mark of origin appears on the sealed retail packaging, but not on the article itself.
B. The mark of origin appears on the article, but is not visible when displayed in its sealed retail packaging. C. The mark of origin appears on the article and on the back side of the retail packaging, but not in close proximity to the U.S. address of the importer appearing on the front side of the packaging. D. The mark of origin appears on a conspicuous hang tag, but the retailer cuts off the hang tag before displaying the merchandise for sale. E. The article is not marked with the country of origin, but the importer submits an affidavit certifying that the article is not for resale and is to be given away in a promotional campaign. |
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Which of the following shipments would NOT be exempted from the country of origin marking regulations?
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A. Twelve thousand playing cards, imported by a local toy store, that were made in Taiwan to be sold at retail.
B. One thousand crystal vases which were hand-blown in and shipped from Germany, then put into a bonded warehouse for two months upon their arrival in the United States, and are now being withdrawn from the warehouse by the local gift shop that is the importer of record. C. Thirty watches, claimed to be antiques that were produced 35 years ago in Switzerland. D. China set purchased by a newlywed couple for their new home while they were on their honeymoon in Ireland, which has just arrived at the port for clearance. E. Ball bearings from Mexico that will be incorporated into roller blades to be manufactured by the importer of record. |
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A man’s woven shirt is properly marked with the country of origin on the front of a sewn in label located at the center of the neck. There is a black hangtag located on the right sleeve near the wrist area. One side of the hangtag lists, in red print, the name of the importer and their U.S. address: TSA, 111 NW 1st, Seattle, WA. The other side of the hangtag lists the size, material content and price. To comply with Customs country of origin marking requirements, which ONE of the following statements is correct?
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A. No additional marking is required since the sewn in label correctly states the country of origin.
B. An additional hangtag on the left sleeve is required which states the country of origin. C. An additional country of origin marking is required. It must be located on the side of the hangtag near the price. D. An additional country of origin marking is required. It must be located on the side of the hangtag, which lists the U.S. address. It must be legible, permanent, and in close proximity to the U.S. address. It also must be of a comparable size. E. An additional hangtag in the center of the neck re-stating the country of origin would be sufficient. |
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Fred is importing used screws and nails from Germany dutiable at 6.2% and 3%. (The country of origin of the screws and nails is Germany.) Fred plans to smelt the used nails and screws and mold them into brackets. The German supplier mixes both the nails and screws together. What is the rate of duty that would apply for the commingled goods?
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A. 6.2%, the highest rate of duty.
B. 3%, the lowest rate of duty. C. 9.2%, the combination of the applicable rates of duty. D. 4.6%, average of the applicable rates of duty.E. When goods of this nature are commingled they are not admissible. |
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José, Vice President of an Italian food corporation located in New York is importing tortellini from a company in Italy, an unrelated party. The company in Italy informs José that if he buys over 1,000 packages of the merchandise per month then $200 of the money will be returned to José at the end of each month, following the importation of the tortellini as a separate transaction. José agrees to purchase 1,000 packages per month at $1 per package. Which of the following statements is correct?
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A. The money returned to José is a rebate and therefore transaction value cannot be used to determine the value of the shipment.
B. The money returned to José is a rebate, and transaction value can be used but the rebate will be disallowed. C. The money returned to José is a quantity discount and therefore transaction value of identical merchandise can be used to determine the value of the shipment. D. The money returned to José is a loyalty discount and therefore transaction value of identical merchandise can be used to determine the value of the shipment. E. The money returned to José is a rebate and therefore computed value can be used to determine the value of the shipment. |
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Which of the following would be a dutiable assist?
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A. Importer Jim Jones will be buying watches from a Switzerland watch manufacturer. Jim Jones saw some watch bands that he especially likes in the United States. He buys the bands and then sells them to the Switzerland watch manufacturer to incorporate into the watches they will be making for him.
B. ZZ Bags, Etc. in Los Angeles will be buying tote bags made of bamboo with leather handles from Singapore Manufacturing Co., Ltd. ZZ Bags, Etc. knows of a reputable supplier of leather handles in Singapore, and arranges for Singapore Manufacturing Co., Ltd. to purchase the handles from the handle manufacturer to be used for the tote bags. C. A New York retail toy store has contracted with Paris Toys to make a new game for toddlers. The New York toy store already has sketches of the game that were created by their art department in the U.S., which it will supply to Paris Toys for their use in making the game. D. ABC, Inc., of Topeka, Kansas, will be importing plastic-covered jewelry boxes for young girls from XYZ Plastics, Ltd. of Brazil. The frame of the box is made of cardboard, which will be covered with plastic sheeting on which plastic imitation stones will be attached. ABC, Inc. will be supplying the plastic sheeting to XYZ Plastics free of charge to be used in making the jewelry boxes, and XYZ Plastics will source the cardboard and plastic stones domestically. E. Cheapo Gifts of Boston will be importing one shipment of plastic animal figurines made by C&C Gifts, Ltd. of Taiwan. Cheapo Gifts already has the molds for the figurines, so they will sell the molds to C&C Gifts, Ltd. at their current market value. C&C Gifts, Ltd. will use these molds when it makes the figurines. |
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Ceramic Imports, Inc., imports a shipment of vases from a factory in France. The expenses associated with the transaction are as follows, on a per vase basis:
-$3.00 Ex-factory in Paris -$ .15 Foreign Inland freight from Paris to Bordeaux -$ .30 Ocean freight to the US -$ .10 Marine Insurance -$ .20 US Inland freight What is the transaction value of each vase? |
A. $3.00
B. $3.20 C. $3.60 D. $3.15 E. $3.55 |
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In which one of the following situations may the transaction value method of appraisement be used?
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A. Mirabel Designs, Inc., imports a shipment of bolts of cloth on consignment.
B. Ace Construction Company imports a specialized machine leased from a company in Canada. C. Soaps Unlimited of Ireland lowers its price of luxury soaps for a major retail customer in the United States on the condition that the U.S. retail customer also contracts to purchase a specified quantity of a new line of bath products. D. Chemie Gmbh. of Germany sells chemicals to its sister company in Michigan for the same price that it charges its unrelated customers in the United States. E. Art Italico sells calendars to a U.S. importer at a special discount but insists that because of the low price the calendars can only go on sale after the beginning of the new year. |
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A mold was provided free of charge to a Korean manufacturer by the US importer. This mold cost the importer $75,000. The US importer paid freight costs of $1,000 to send the mold to the Korean manufacturer. The Korean manufacturer paid the Korean import duty of $500 for the mold. What is the total value of the assist?
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A. $76,000
B. $76,600 C. $75,000 D. $74,000 E. $74,500 |
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A German manufacturer sells a state-of-the-art piece of construction machinery to a U.S. construction firm. The contract price is $90,000 C.I.F. delivered duty paid. The total contract price includes technical assistance in the U.S. for assembling and maintaining the machinery. The contract provides a breakdown of costs. Which of the following items CANNOT be excluded from transaction value?
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A. Assembly costs at the construction site
B. Customs duties paid at the time of importation C. Transportation charges from the port of importation to the construction site D. Selling commissions paid to the manufacturer’s agent by the buyer E. Insurance charges covering the international shipment of the machinery |
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XYZ Plastics, Inc., agrees to purchase some plastic components from an unrelated foreign manufacturer, ABC Plastico. ABC Plastico informs XYZ Plastics, Inc. that it will need to acquire some new molds in order to fill the order. The going retail price for such molds is $17,000. XYZ Plastics, Inc. advises ABC Plastico not to purchase new molds, because XYZ Plastics, Inc. has some used ones on hand, which will be express shipped to ABC Plastico at the earliest opportunity. XYZ Plastics, Inc. will not charge ABC Plastico for the use of its molds. XYZ Plastics, Inc. acquired these molds two years ago from a related U.S. company, B&C Moldmakers, Inc., for $15,000. B&C Moldmakers, Inc.’s production records reflect a production cost of $13,500. After two years of use by XYZ Plastics, Inc., the depreciated value of the molds is $7,000. The cost of transporting the molds to ABC Plastico is $500. Upon importation the plastic components are appraised under transaction value. Which of the following is the value of the assist?
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A. $17,500
B. $15,000 C. $13,500 D. $7,500 E. $500 |
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Leon of Brussels, Belgium sells his original artwork to Anthony of Arizona Arts for $100 a painting. In addition, Leon will assess a $50 right to reproduce charge on every painting Anthony wishes to reproduce in the U.S. International freight charges to the U.S. are $10 per painting, and insurance charges $20 per painting. The agreed upon terms of sale are CIF-Sedona, Arizona. Based on the information provided, which one of the following is the correct transaction value for each painting?
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A. $70
B. $150 C. $110 D. $130 E. $180 |
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When analyzing a related party sale to determine if the price is acceptable for transaction value, one can:
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A. Look at the prices at which the seller sells to non-related buyers in the seller’s domestic market.
B. Assure that the price is sufficient to recover all the costs, plus a profit equal to the firm’s overall profit for all export sales. C. Assure that, using the transaction value method, the regional value content is at least 60%. D. Adopt a test value as the appraised value. E. Compare the way the related price was determined to the normal pricing practices of the industry. |
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Which of the following situations would prohibit the use of transaction value?
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A. The price at which the foreign seller sells the imported merchandise to the U.S. buyer/importer is dependent upon the buyer/importer’s purchase of other merchandise from the foreign seller.
B. The U.S. buyer/importer is a subsidiary of the foreign seller and purchases merchandise at the same price afforded to non-subsidiary buyers C. The U.S. buyer/importer provides to a foreign seller components valued at $1,000 to be incorporated into the merchandise. D. The foreign seller will receive a fixed amount, known prior to import, of the U.S. buyer/importer’s proceeds when he resells the merchandise in the U.S. E. The foreign seller imposes a restriction on the U.S. buyer/importer that the U.S. importer can only resell the merchandise in the tri-state New York, New Jersey, and Connecticut area. |
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When appraising an importation using transaction value of identical or similar merchandise which one of the following is FALSE?
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A. The identical or similar merchandise must have been exported to the United States at or about the time that the merchandise being appraised was exported to the United States.
B. The identical or similar merchandise does not have to be imported as the result of a sale, e.g., the merchandise was imported on consignment or under lease. C. Minor differences in appearance will not preclude otherwise conforming merchandise from being considered “identical.” D. The quality of the merchandise, its reputation and trademark will be factors considered in determining “similar” merchandise. E. Adjustments for identical or similar merchandise because of different commercial levels or quantities can be made. |
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All of the following are valid deductions from the price of the merchandise concerned under the deductive value method of appraisement EXCEPT for which one of the following?
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A. Customs duties.
B. Actual transportation and insurance costs for the international shipment of the merchandise.C. Packing costs. D. Commissions paid in connection with sales in the United States of imported merchandise. E. The value added by further processing of the merchandise after importation. |
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Assuming that USA Corporation established a wholly owned factory in Malaysia and transaction value or deductive value does not exist for merchandise produced by the factory, which costs would NOT be part of the computed value of the merchandised imported by USA Corporation?
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A. Cost of production molds supplied by the USA Corporation free of charge
B. Cost of materials used in the production of the merchandise C. Cost of labor to produce the merchandise D. General expenses and profit normally reflected in sales of merchandise of the same class or kind as the merchandise being imported E. Internal tax in Malaysia remitted upon exportation of finished goods |
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High Tech Equipment of France ships furnaces for manufacturing computer chips to its wholly owned subsidiary in the United States. All chips manufactured in this furnace will be shipped back to High Tech free of charge. This is the first time this type of furnace has ever been imported from France. In fact, High Tech is the only manufacturer of this type of furnace in France. Because of the nature of the equipment, the government of France prohibits any type of cost information from being released by the factory. A similar furnace is manufactured in Germany and imported into the United States. High Tech sells identical furnaces to an unrelated company in India. There is one factory in the United States that makes similar furnaces and sells them domestically. What is the correct basis of appraisement and which sale should be used?
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A. Transaction value of identical and similar merchandise, utilizing the price of the furnace manufactured in Germany and imported into the United States.
B. Transaction value of identical and similar merchandise, utilizing the price of the furnace manufactured by High Tech in France and sold to an unrelated company in India. C. Transaction value of identical and similar merchandise, utilizing the price of the furnace manufactured in the United States and sold domestically. D. Value, if other values cannot be determined or used, utilizing the price of the furnace manufactured in Germany and imported into the United States. E. Value, if other values cannot be determined or used, utilizing the price of the furnace manufactured by High Tech and sold to an unrelated company in India. |
