You have before you a Cost Insurance and Freight (C.I.F.) shipment which has an invoice value of $5,000, and a weight of 12,000 kilograms. The duty rate is 10% plus 2 cents per kilogram. Included in the invoice price are: brokerage fees of $50, ocean freight costs of $600, and duty. (Minimum merchandise processing fee of $25 applies, and there are no other applicable fees.) The merchandise was imported January 31, 2012. However, the buyer and seller agreed to a price reduction of $500 on February 4, 2012 (before the entry summary) to reflect a ‘new customer’ discount. What should the entered value of the shipment be?
A. 3214
B. 3259
C. 3652
D. 3714
E. 4327
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The Answer is: D
Citation: 19 CFR 152.103(a); 19 CFR 152.103(4)
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