October 2023 — Question 19
Using the formula (Previous 12 months ((duties+taxes+fees) multiplied by 10 percent) rounded up by increments of $10,000 up to $100,000 and then by increments of $100,000 with a minimum of $50,000), what is the minimum bond amount in the following scenario? A footwear importer is establishing a new continuous bond. The importer imported a total value of $9,412,039.00 during the prior 12 months. The importer's expectation is that it will have a steady increase of 10 percent in import value in each of the next five (5) years, which will result in an increase in duties and taxes and fees paid. The importer paid $1,120,032.64 in duty for the previous 12 months and $44,368.35 in taxes and fees over the same time period.
- A$50,000.00
- B$112,000.00
- C$120,000.00
- D$200,000.00✓ CBP's answer
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Answer and citations as published in CBP's official answer key for the October 2023 examination.
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