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October 2020 (AM) — Question 64

In the scenario below, what is the CORRECT claimed amount for 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 (MPF rate .3464%) $485.00 Exported merchandise for drawback purposes: 200 bikes.

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CBP's cited authority

§ $185,000 total entered value excluding NDC divided by invoice value $187,500 = .986666 relative value ratio. .986666 x $200 per unit = $197.33333 relative value ratio of each bike. $197.33333 x 200 bikes = $39,466.666 prorated value of the claimed merchandise. $39,466.666 divided by $185,000 = .213333 apportioned amount of MPF per unit. .213333 x $485 total MPF paid = $103.46666 100% of MPF paid. $103.46666 x 99% = $102.43 is the drawback refund claimed amount on MPF - 19CFR§ 191.51(b)(2)(iv)

Answer and citations as published in CBP's official answer key for the October 2020 (AM) examination.

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