Anti-Dumping & Countervailing Duties
October 2018 — Question 25
Baxter Brown imported sodium nitrate from Germany, which is classified under 2834.10.10 Harmonized Tariff Schedule of the United States, at a 5.5% ad valorem duty rate and is subject to antidumping duties under Antidumping Order A-428-841-000. The sodium nitrate is shipped by air and formally entered at the port of John F. Kennedy International Airport. The total value of the shipment is $8,432.00. The applicable antidumping duty cash deposit is 150.82%. What is the total amount of estimated duties and fees that should be reported on CBP Form 7501?
- A$463.76
- B$492.97
- C$503.51
- D$12,717.14
- E$13,210.11✓ CBP's answer
Why this answer
CBP's keyed math adds the three amounts the 7501 must show: regular duty of 5.5% on $8,432 ($463.76), the merchandise processing fee of 0.3464% ($29.21), and the antidumping cash deposit of 150.82% ($12,717.14), totaling $13,210.11. Because the sodium nitrate arrived by air at JFK, no harbor maintenance fee applies, so nothing beyond these three items belongs in the total. Antidumping deposits are estimated duties reported on the entry summary alongside ordinary duties and fees, which is why option D fails: it is the dumping deposit standing alone, without the ordinary duty and MPF the form also requires. Watch for: Reporting the antidumping deposit alone and dropping ordinary duty and MPF.
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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