Saturday, March 28, 2009

CBE Study Tip 10: Valuation

Customs Valuation (19 CFR 152) is one of the most complex parts of the regulations. This section is one of the most frequently tested on the exam, and the questions are often long and time consuming to answer. When reading Part 152, it would be wise to read each section slowly in order to understand the complex terms discussed. Pay close attention to any examples provided because they help explain and demonstrate the complicated concepts. Highlight important areas of text. Make notes and lists in the margins. Locate the valuation questions in old exams and work through the questions. Make sure to mark each section of the regulations that was used in determining the answers.

Click HERE to view an outline of the most important valuation information found in 19 CFR 152. Read and highlight these sections in your copy of the regulations. Take this outline to the exam with you for a quick reference tool.

Stay tuned to Boskage Trade News for more helpful hints on studying for the Customs Broker Exam! Please feel free to add your comments, suggestions for topics you would like to see covered and other useful information to the blog!


Anonymous said...

Hello Wizard,

My name is Keith and I really enjoy your reviews.

I am planning to take the April 2009 exam. I have a question on antidumping and countervailing order. On April 2004 exam #61, it asks for sum amount of monies payable to cbp. I read CFR 353 part III regarding the orders but am still confused.

It says to collect a cash deposit for the entered goods. I also realize that the Mexican tiles qualify for NAFTA so it's free of duty.

I am very confused and was wondering if you can help me on this question.

Thank you very much

Wizard said...

Wizard Responds to Keith

Thank you for the compliment. The Wizard is happy that you enjoy the blog.

Here's some information about Q61 from the April 2004 Exam.

First we need to look up the HTSUS number to determine the duty rates. We cannot assume that the merchandise is free of duty just because it is from a NAFTA country. The duty rate of paving stones from Mexico is 5.3%. $250,000 x 5.3% = $13,250. MPF is not due on entries eligible for NAFTA. The next amount to be considered is antidumping duties. These duties are deposited at the time of entry and amount to $250,000 x 7.43% = $18,575. B is incorrect because it includes the MPF costs and the MPF costs exceed the maximum allowable of $485. C is incorrect because the amount only includes the antidumping duties. D is incorrect because it included MPF, which is not included on entries eligible for NAFTA. E is incorrect because the amount only includes the duties; not the antidumping amounts. A is the correct answer because it includes the amounts for duty and antidumping.

Anonymous said...

Thanks Wizard, that really helped me a lot.

I have one more question to ask you.

For this coming exam, the CFR 200-end is tested. What kind of facts should I be looking for?

I am currently studying the different reviews of CVD AD rules. Is there more you can recommend studying?


Wizard said...

Wizard to Anonymous
The April 2009 Exam should be very interesting since Part 200 - End has not been tested in the past. This is only a guess, but the Wizard would expect to see questions related to antidumping and countervailing duties, since questions related to those topics have been asked in the past.

Good luck!