712

423 *ABC Steel purchased carbon steel bars from a manufacturer in Ontario, Canada. ABC steel paid $19,000, ex-factory, in Canadian dollars. The steel bars arrived at the Detroit Port of Entry via semi-tractor trailer on 5/6/2015, and the shipment was released the same day. The applicable currency exchange rate is .793021. The invoice price does not include duty at 2.9%, merchandise processing fee at .3464%, or freight charges of 1,628. What is the entered value of this shipment?

it is 19,000 ex factory because we are given that the invoice price says it does not include duties, freight charges, and etc. But we need to convert this and the answer is 15067.

173 If furnished free of charge by the buyer to the seller, which of the following items would NOT be considered an Assist?

Designs from US engineering company.

180 What is the TV of commercial samples invoiced as $5,000 worth of leather wallets, ex-works (outside of factory door), with actual foreign inland freight charges of $200.

$5000 ex -works is the same as ex-factory. Foreign inland freight are not dutiable(not included in the TV) so TV is $5,000. 152.103(a)(5)

456 A shipment of 860 dozen scissors, manufacturer in China, is invoiced at 74.77 per dozen, CIF San Juan. The invoice shows an estimate of marine insurance at $0.03 per unit with an estimate of ocean freight at $6,200. The bill of lading shows the actual ocean freight to be $4,750. The insurance bill provided shows a rate of $0.005 per unit. What is the transaction value of this shipment?

$ 59,501 ¸basically 860*74.77 - (4500 + 0.005*(860*12))

465 *Leon wants to sells his original artwork to Anthony for $100. In addition, Leon will assess a $50 right to reproduce charge on every painting Anthony wishes to reproduce in the US, international freight charges to the US are $10 per painting and insurance charges $20 per painting. The agreed upon terms of sales are CIF-Sedona, Arizona. Based on the information provided, which of the following is the correct transaction value for each painting?

$100 , because the right to reproduce and Insurances/freight are not part of the transaction value.

172 An importer furnished $1,000 of materials and a machine which originally was purchased for $10,000 to an overseas unaffiliated producer free of charge. The importer noted that the machinery was fully depreciated, pursuant to generally accepted accounting principles and the importer paid freight charges of $50 and foreign duties of $5. The importer furnished inspection equipment to the producer to test the quality of the goods after production in the amount of $1. For accounting purposes, the machinery was depreciated over 5 years. The value of the assist is:

$1055.

193 What is the APPRAISED VALUE for the following? An importer of wearing apparel enters into a contract with a Korean manufacturer. The manufacturer will produce 1,000 dozen women's suit jackets for $120,000, CIF New York. The jackets will be imported on one entry. The freight is $7,000 and the insurance is $1,000. The importer will supply the manufacturer with wool fabric valued at $50,000. The fabric is produced in the US and will cost $1000 to transport the fabric to the manufacturer.

$163 000

418 24,000 CIF , 2200 for air freight and insurance, and Boston delivery service showing 837.50. The correct duty rate is 7.5 % ad valorem. What is the corrected entered value of the merchandise?

$19 500, since this is CIF, we assume x is transaction value so it is x + .075x is equal to 24 000 - 837.50 -2200. 20962.50/1.075 is x

175 *The commercial invoice from the seller accompanying the entry package provides the following itemized costs and sales data: 100,000 pieces of fry pans; unit value

$3.00 each; $50,000 identified as a credit for an over payment by the buyer on a previous transaction, which has already been applied to the selling price; $5000 of marine insurance; and $10000 of ocean freight. What would be the transaction value? = $350,000 , so 3*100000 + 50,000 (indirect payment) , and marine and ocean freight is excluded because it is international.

468 You have a shipment of canoes to enter, from the WW Co.. This particular sale has been made to White water's retail outlet in Buffalo, NY, the outback, a related party. The canoes are invoiced at US 500/each. At 5 percent variation the price is considered a "close approximation". The only information available is that for this related party sale is a test value from a unrelated seller of similar merchandise, to another unrelated US importer for US 450. The sale occurred at approximately the same time as the one before you. There were no adjustments necessary with respect to the commercial levels and the quantity of the merchandise being appraised, and the basis of appraisement for the similar sale was transaction value, at the $450 price. Based on this information, the correct value and basis of appraisement is :

$450, transaction value of identical or similar merchandise.

184 A US importer purchased merchandise from an unrelated manufacturer in France for $5000 DDP, duty paid and delivered to the Miami warehouse of the importer. Air freight from France to Miami cost $250. Delivery from the Miami airport to the importer's warehouse cost #74. The duty rate is 1.2 % ad valorem. There is no MPF, HMF, or any other fees or taxes that have to be paid in addition to the duty. Also, CIF only includes delivery to port and does not include duties and domestic transportation. What is the correct entered vale?

$4619.57, so basically if it's DDP then is x = (5000-250-75) / 1.012

181 A US resident importer purchased from an unrelated supplier widgets invoiced at $10,000 DDP (delivered duty paid) to NY. Actual air freight to NY from the supplier is $1,500. The rate of duty is 7.5 % ad valorem. The entry is not subject to additional fees such as HMF and the MPF. Both parties agree that if the US importer is able to sell the merchandise within 48 hours upon the entry that the importer will pay an additional $500 to the supplier. The merchandise is sold after 10 working days. What is the entered value?

$7907

190 *What is the Transaction Value of a shipment invoiced at $100,000 DDP with Ocean Freight 6000, the insurance paid is 850, the duty rate is 6.5% and HMF and MPF are paid at .125% and .3464% respectively? Values are rounded to the nearest dollar

$87,079, so it's DDP so we know x + .065x + .00125x +.003464x = 100,000 - 6000 - 850, so it is 93,150 / 1.069714 = x

457 *Which of the following is the transaction value of a shipment of lithium-ion batteries with the following details?

$93401, we know it's DDP so let x be transaction value. x + 0.037464x is equal to 100 000 - (3000) - 100 and x is 96900 / 1.037464 and it is 93401.

185 An US importer contracts the services of a foreign manufacturer to manufacture 300 aluminum windows at $40 per window. The importer sends $500 worth of tools to the manufacturer though an air carrier. The carrier charges the US importer $300. The US importer receives the windows that are invoiced at $12,000 dollars. The importer will pay $300 to the air carrier, but they are not going to receive the $300. What is the Transaction value?

12800, so we have 40*300 + (500) + (300) for the tools (assists) it includes transportation cost of (300).

192 Which of the following items is NOT an element used to determine the computed value of imported merchandise?

152.106, the answer choice has CONSISTENT but true statement has inconsistent.

176 A US importer purchased ceramic tiles from a manufacturer located in Madrid, Spain. He paid $21,308 ex-factory. Inland freight from Madrid to the port of Cadiz, Spain cost $225. The price does not include the US duty (8.5%) , MPF (.3464%) , HMF (.125%) What is the corrected entered value?

21308

463 *Which ONE of the following is the correct appraised value?

24750 , because (The paper is exported by ship from Italy on 10/1/2002) Also condition of sale so it must be included as the transaction value. So it TV is 25000 , if not condition of sale it would be 24000. Now, FOB rome means it's the country where it will be exported. 2500 * .99

187 *You have a shipment of canoes to enter, from the White Water Co., of Edmonton, Alberta, Canada. This particular sale has been made to White Water's retail outlet in Buffalo, New York, The Outback, a related party. The canoes are invoiced at US 500/each. A 5 % variation in price is considered "close approximation" test. 500 * .05

25 , and this is the difference between 25 and 50. So we cannot use

460 *AA imports barrettes and sells them to retail stores in the US. Angels Accessories pays Sunshine Manufacturing Company (an unrelated company) in China $5,000 to produce 10,000 barrettes. Angels Accessories also: 1.) mold that costs 500 that will be used 2.)US produced detailed sketches $100, (does not count) 3.) 300 for metal fasteners, to be incorporated in the imported barrettes.

5800

178 *Upon written request from the importer, CBP shall provide a written explanation of how the value of the importer merchandise was determined within ____ after liquidation.

90 days. 152.101(d).

462 Importer ABC wishes to purchase trademarked shirts from seller 123 limited. The price of the shirts is $75,00 each. 123 limited will not sell unless ABC company pays an additional fee of $3.00 per shirt for the right to the trademark. What type of additional fee is this?

A royalty to be added. Addition to the transaction value. others include CRAPP.

470 *Gadgets & Widgets is an importer... What is the computed value of this shipment?

Add everything up Assists, Taxes that are not refunded, profits and general expenses, and etc. The key thing to note is that the total amount becomes consistent with the total amount usually reflected in the sales of imported merchandise of the same class or kind.

188 Which one of the following choices does NOT qualify as a "related person" for purposes of valuing imported merchandise?

Any person directly or indirectly, owning , controlling or holding with power to vote, less than five percent of the outstanding voting stock or shares of any organization and such organization. The true statement is that 5 % or more (which is the principal).

177 All of the following are additions to the price actually paid or payable EXCEPT ____.

Buying Commission, All other are additions to TV such as Packing Costs, Selling Commission, Proceeds, Royalties.

550 DJ is a licensed broker who runs his own brokerage business. Which ONE of the following activities may Don safely undertake without subjecting himself to sanction by Customs.

Don receives a duty refund for a client and immediately notifies the client in writing that the refund will be applied to offset a debt owed him by the client.

469 *What is the basis of appraisement for the following situation?

Deductive value, because we have the statement "A US producer distributor imports Grade "A" tomatoes form Mexico on consignment". With consignment it means that the distributor doesn't own it outright and thus Transaction Values answer choices can be eliminated. Computed Value is wrong because it must include everything from the ground up.

179 *The computed value of imported merchandise would include all of the following EXCEPT:

Includes packing costs, assists, and profit and general expenses. The cost or value of the materials, fabrication, and other processing used in the production of the imported merchandise. Does not include the amount of any internal tax imposed by the government upon exportation of the goods in the production of which the materials were used.

191 *What is the appraised value of 10,000 computer monitors with a unit value of $75 CIF, LA?

Ocean freight is 2.50 , Marine insurance is 0.50, and foreign inland freight is $1 , so it is $4, 71$ is each unit cost so 710 000 is the ANSWER. We do not count the assist because it stated from a third party and not from the buyer. Since the bill of lading serves which non ex factory inland freight transactions can be excluded however , this in situation this is a CIF so inland freight are dutiable.

461 An importer provides a machine to manufacturer for use in the production of imported merchandise, free of charge. The cost of the machine is $50,000 and the cost for transporting the machine to the manufacturing facility was $4,500. Which declaration is appropriate for the entered value of the machinery?

On the first shipment, declare $54500, the value of the machine plus the cost of transporting the machine to the place of production.

189 *Transaction value cannot be used if ___.

Promotional goods or samples are shipped free of charge. TV can be used if buyer and seller are related. There is an selling agent to arrange the sale. Allows restriction by law on the use of the imported product in the US.

171 *The price actually paid or payable price may be the result of additions, deletions or negotiations. Which of the following is NOT allowed?

REBATE, 152.103. There are restrictions for REBATE. After date of importation of merchandise you disregarded. Only Before date of importation then it affects TV. 152.103(a)(4)

459 *A German manufacturer sells a state of the art piece of construction machinery to a US construction firm. The contract price is $90,000 CIF delivered Duty paid. The total contract price includes technical assistance in the US for assembling and maintain the machinery. The contract provides a breakdown of costs. Which of the following terms CANNOT be excluded from the transaction value?

Selling commission paid to the manufacturer's agent by the buyer.

467 *Which prevents the use of Transaction Value?

So basically for this question it says which of these choices means that they cannot use the transaction value? The answer is "A stipulation that the price is dependent upon the price at which the buyer of the merchandise sells other merchandise to the seller of the merchandise", stipulation is an agreement. So basically you sell at this price and I buy at this price.

183 TV may be used between related parties if which of the following statement is true?

The TV is close to the transaction value of identical merchandise in sales to unrelated buyers in the US. The other answer choices suggest they are prohibited or weaker/negative. 152.108(c) and 152.108(e)

419 *A foreign manufacturer transfer a shipment of merchandise to its wholly-owned US subsidiary. There is no sale involved and the deductive value method is being used as the basis of appraisement. The imported merchandise is further processed by the importer and is not sold before the close of the 90th day after the date of importation. The further processed merchandise is, however, being sold before the 180th day after the date of importation. The imported merchandise is appraised at the unit price of the imported merchandise after further processing that is sold in the greatest aggregate quantity before the 180th day after the date of such importation, minus the further processing costs and other authorized deductions. This method of appraisement under deductive value is permitted because of which ONE of the following conditions?

The importer has ELECTED this method of appraisement at the time of filing the entry summary and there is sufficient information regarding the costs of further processing.

466 The following items are all grounds for rejection of the use of transaction value, EXCEPT

The importer plans to file more than one transaction with CBP. The other answer choices are grounds for rejection of transaction value. Such as 1.)buyer and seller are related and the price is NOT acceptable for TV 2.)Part of proceeds accrue to the seller without ADJUSTMENT 3.)Price and value cannot be determined. 4.)There are restrictions and disposition or use of the goods.

308 What statement regarding the plastic blister packaging is TRUE?

The packaging is classified with the stopwatches. GRI5(b), note for this special question marking requirements for watches are interesting.

471 *Which ONE of the following is NOT a true statement about general expenses and profit under computed value?

We look at the true statements, 1.)General expenses and profit are taken as a whole.2.) Assists may be included under general expenses, if that is the producer's method of accounting 3.)If the general expenses and profit used are not those of the actual importer, then they must be based on sufficient information. 4.) If GE and profits are not consistent with that of the producers in the country of exportation for sales of merchandise of the same class or kind, then the amount will be based on the usual profit and general expenses of such producers in those sales as determined from "sufficient information".

170 When a commercial sales transaction is quoted in a foreign currency, the date used for conversion purposes is:

the date the goods were exported from the country of export to the US.(Date of exportation). 159.32 and 152.1