2009 April No.76 – GENERAL


76 Select the correct answer for calculating the transaction value of a shipment with details as follows:  $1,750,000 entered amount,  CIF New York Duty Paid, MPF included  Price includes $25,000 ocean freight, $2500 marine insurance, $1500 trucking freight (New York to Baltimore, MD), $100 broker fee in Baltimore, $100,000 Customs duties and fees  The actual duty rate is 6.5%  The actual MPF rate is 0.21%

A. TV = entered amount minus ocean freight, marine insurance, trucking freight, and customs broker fee; add MPF and 6.5% duty

B. TV = entered amount minus ocean freight, marine insurance, trucking freight, and Customs broker fee. Divide remainder by 1.0671. Multiply the remainder by .0021. Subtract $485 from the entered amount minus the authorized deductions. Divide the remainder by 1.065

C. TV = entered amount minus ocean freight, marine insurance, trucking freight, maximum MPF, and 6.5% actual duty rate

D. Divide out the actual duty rate, and then subtract the ocean freight, marine insurance, trucking freight and customs broker fee

E. TV = entered amount minus ocean freight, marine insurance, and trucking freight fee and divide by 1.0671, multiply by .0021 for actual MPF; subtract MPF as allowed from the entered amount minus deductions and divide by 1.065 to yield Transaction Value

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The Answer is: Credit granted to all

Citation: Credit granted to all

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