Anti-Dumping & Countervailing Duties
October 2018 — Question 24
Westbay Clothing Company imported 1200 wire hangers from China, which are classified under subheading 7326.20.0020, Harmonized Tariff Schedule of the United States, at a 3.9% ad valorem duty rate and are subject to antidumping duties. The wire hangers are shipped via air and formally entered at the port of John F. Kennedy International Airport. The total value of the shipment is $9,655.00. The applicable antidumping duty cash deposit rate is 200%. What is the total amount of fees and estimated duties that Westbay should report on CBP Form 7501?
- A$424.48
- B$19,686.55
- C$19,701.03
- D$19,719.99✓ CBP's answer
- E$20,102.55
Why this answer
The total combines regular duty, the merchandise processing fee, and the antidumping cash deposit, all reported on CBP Form 7501. Duty is 3.9% of $9,655 ($376.55); MPF is 0.3464% ($33.44, between the statutory minimum and maximum); the antidumping deposit is 200% ($19,310.00). Together they equal $19,719.99, matching CBP's keyed arithmetic. No harbor maintenance fee is added because the shipment arrived by air at JFK, and HMF attaches only to port-use vessel shipments. Option B is the strongest lure because it correctly adds duty and the dumping deposit but drops the MPF, the small fee that decides the question. Watch for: Adding duty and the dumping deposit but forgetting the 0.3464% merchandise processing fee.
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 October 2018 examination.
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