Customs Valuation Principles Flashcards
7 cards from real CCS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Customs Valuation Principles flashcards as text
Under the WTO Customs Valuation Agreement, when transaction value cannot be used, what is the FIRST alternative method to apply?
Answer: Transaction value of identical goods
The hierarchy requires attempting transaction value of identical goods before other alternative methods.
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?
Answer: $50,000
The U.S. uses an FOB (origin) valuation standard, so international freight and insurance are excluded from dutiable value.
Which condition would DISQUALIFY a sale from being used as the basis for transaction value?
Answer: Sale involves a quota restraint on resale territory
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.
An importer receives a year-end rebate from the seller based on total purchase volume. How should this rebate affect customs valuation?
Answer: It can reduce the dutiable value if it is determinable at time of importation
A rebate that is predetermined and determinable at the time of importation may be used to reduce transaction value.
What is 'computed value' in U.S. customs valuation?
Answer: Cost of production plus profit and general expenses typically reflected in sales of same class
Computed value is built up from cost of materials, fabrication, profit, and general expenses for goods of the same class or kind.
Which of the following is included in the transaction value under 19 USC 1401a?
Answer: Packing costs incurred by the buyer
Packing costs (including labor and materials) are explicitly included in transaction value under 19 USC 1401a.
When related-party transaction value is under CBP review, which test can the importer use to justify acceptance of the declared value?
Answer: The 'circumstances of sale' test or the 'test values' approach
CBP will accept related-party transaction value if the importer demonstrates it passes either the circumstances-of-sale test or matches test values (identical/similar goods, deductive, or computed value).