Trade Agreements & Valuation 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 Trade Agreements & Valuation flashcards as text
When must CBP apply the deductive value method before the computed value method?
Answer: Only when the importer cannot provide cost data from the foreign producer
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.
Under the deductive value method, which of the following deductions is NOT permitted from the unit price of the imported merchandise?
Answer: Costs of ocean freight and marine insurance to the U.S. port of entry
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.
Which element is included in the computed value of imported merchandise?
Answer: Profit and general expenses of producers in the country of export
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.
Under the 'fallback' or 'other' method (Method 6) of customs valuation, which approach is explicitly PROHIBITED?
Answer: Basing value on the highest of two acceptable alternative values
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.
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?
Answer: 35%
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.
An importer of record declares a transaction value of $50,000 for electronics. CBP questions whether the price is influenced by a buyer-seller relationship. What must CBP prove to reject the declared transaction value?
Answer: That the relationship actually influenced the price paid or payable
Under 19 USC 1401a(b)(2)(B), CBP cannot reject transaction value merely because buyer and seller are related; CBP must demonstrate that the relationship actually influenced the price.
Royalties and license fees paid by a U.S. importer to the foreign seller are dutiable when they meet what test?
Answer: They are paid as a condition of the sale of the imported goods for export to the U.S.
Royalties or license fees are included in transaction value only if they are related to the imported goods AND are a condition of the sale of those goods for exportation to the United States (19 USC 1401a(b)(1)(D)).