May 2024 — Question 60

Broker ABC receives documents to clear an ocean shipment of $250,000 in ceramic plates. The invoice indicates that the merchandise was manufactured in South Korea. Broker ABC did not receive additional information regarding the country of origin before filing the entry summary and paying the duties, merchandise processing fee, and harbor maintenance fee. Upon receiving the proof of country of origin, Broker ABC filed a timely post importation claim under the US-Korea Free Trade Agreement (KORUS). Upon liquidation, what will CBP refund?

• AThe refund will be 100% of the duties, merchandise processing fee (MPF), harbor maintenance fee (HMF), plus interest calculated from the date of payment to the date of liquidation.
• BThe refund will be 100% of the duties and MPF only plus interest calculated from the date of payment to the date of liquidation.✓ CBP's answer
• CThe refund will be 100% of the duties, MPF, and HMF plus interest calculated from the date of entry to the date of payment.
• DThe refund will be 99% of the duties and MPF only but no interest as a refund resulting from post-importation claim for duty preference under the KORUS is not eligible for interest.