October 2023 — Question 63
Which of the following is an action CBP can take under the provided facts? Prior to liquidation and after cargo release, CBP discovered that a shipment of dog toys was not marked with country of origin on either the dog toy or the packaging. CBP issued a notice of redelivery. The importer has already sold the entire shipment of merchandise such that it cannot be redelivered, marked, exported, or destroyed.
- ARate advance of ten percent (10%) additional duties✓ CBP's answer
- BRate advance of twenty-five percent (25%) additional duties
- CDeem liquidation of the entry summary
- DDetain the importer's next shipment under 19 CFR 133.21 Category X – Fines and Penalties
Why this answer
The cited regulation implements the marking statute's additional-duty provision: articles not legally marked with their country of origin are subject to additional duties of ten percent of the final appraised value unless they are exported, destroyed, or properly marked under CBP supervision. Because the importer sold the dog toys and can no longer redeliver, mark, export, or destroy them, the marking duties attach and CBP may assess the ten percent rate advance at liquidation. Twenty-five percent tempts through association with Section 301 tariff headlines, but the marking provision fixes the additional duty at ten percent, and neither deemed liquidation nor detention of a future shipment under the trademark rules fits these facts. Watch for: Inflating the marking duty to twenty-five percent by association with Section 301 or penalty rates.
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 2023 examination.
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