April 2018 — Question 53
Based on the information below, what is the claimed amount for the merchandise processing fee (MPF) on an Unused Direct Identification 1313(j)(1) drawback claim? • Imported merchandise: 500 bikes ($200 per unit) $100,000 500 spare parts ($175 per unit) $87,500 Invoice value $187,500 Less Non-Dutiable Charges (NDC) -$2,500 Total Entered Value $185,000 Total MPF paid $485.00 MPF rate .3464% • Exported merchandise for drawback purposes: 200 bikes
- A$103.47
- B$102.43✓ CBP's answer
- C$138.56
- D$137.17
- E$480.15 Category VIII – Intellectual Property Rights
Why this answer
19 CFR 191.51(b)(2) requires the merchandise processing fee to be apportioned to the exported units by relative value. Allocating the $2,500 of non-dutiable charges pro rata leaves the bikes an entered value of $98,666.67 of the $185,000 total, so the bikes' share of the $485 MPF is $258.67, or about $0.5173 per bike, and the 200 exported bikes account for $103.47. Because unused merchandise drawback under 19 U.S.C. 1313(j)(1) as then administered was payable at 99 percent of the duties, taxes and fees, the claimable amount is 99 percent of $103.47, which is $102.43. Option A is the correct apportionment before the 99 percent limitation. Watch for: Stopping at the correctly apportioned $103.47 and forgetting drawback pays only 99 percent of it.
Original CBLE Simulator explanation — the question and key above are CBP's; this analysis is ours. Verify against the current edition before relying on it in practice.
CBP's cited authority
Answer and citations as published in CBP's official answer key for the April 2018 examination.
Reading answers is easy. The exam is 80 of these in 4.5 hours.
Pass rates run 12–30%. Find out in 15 minutes whether you'd clear the 75% line today — free, no signup.