Abara Industries imports industrial ceramics from Switzerland. Abara Industries has hired you as its broker. Abara Industries wants to know which exchange rates will attach to its imports for currency conversion purposes. Which ONE of the following statements would be correct advice to give to your client?
A) The exchange rate may be determined by referring to the Harmonized Tariff Schedule.
B) The certified daily rate shall be used in connection with merchandise exported on such day, if the rate for the date of exportation varies by 5 percent or more from the certified quarterly rate.
C) The proclaimed rate shall be used if it varies by 5 percent or more from the certified daily rate for the date of exportation.
D) The certified quarterly rate shall be used at all times, because Switzerland is a country for which the quarterly rate is certified.
E) The exchange rate shall be pegged to the date of importation.
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The Answer is: B
Citation: 19 CFR 159.34(b)(2)
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