Anti-Dumping & Countervailing Duties
October 2022 — Question 12
Sandra Smith imported a shipment of non-alloy steel threaded rods under 7318.15.5056 / Free from China. The invoice amount for the merchandise was $7,564.49. The invoice amount reflects the actual price paid. The shipment arrived by air. The shipment is subject to additional duties of 25% under classification 9903.88.03. The shipment was entered on an 03 anti-dumping duty (ADD) entry and is subject to the Merchandise Processing Fee (MPF). The minimum and maximum for the MPF on the date of entry are $27.75 and $538.40, respectively. The MPF rate is 0.3464%. The ADD deposit rate is 48.91%. What is the total amount of duties, taxes, and fees that should be entered on the CBP Form 7501 Entry Summary?
- A$5,616.75
- B$5,617.12
- C$5,618.00
- D$5,618.30✓ CBP's answer
- E$5,618.66
Why this answer
On the CBP Form 7501 the entered value is reported in whole dollars, so every computation runs off $7,564 rather than the invoice cents. The Section 301 duty under 9903.88.03 is 25 percent, $1,891.00; the antidumping deposit at 48.91 percent is $3,699.55; and the MPF at 0.3464 percent would come to only $26.20, below the $27.75 minimum, so the minimum applies. No harbor maintenance fee accrues because the shipment arrived by air. Adding $1,891.00, $3,699.55, and $27.75 gives $5,618.30, option D. Option E is the tempting distractor because it is exactly what results from computing the percentages on the unrounded invoice value of $7,564.49. Watch for: Computing duties on the unrounded invoice value, which yields distractor E's $5,618.66.
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 2022 examination.
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