2016 April No.33 – Valuation


ABC Steel purchased carbon steel bars from a manufacturer in Ontario, Canada. ABC Steel paid $19,000, ex-factory, in Canadian dollars. The steel bars arrived at the Detroit Port of Entry via semi-tractor trailer on 5/6/2015, and the shipment was released the same day. The applicable currency exchange rate is .793021. The invoice price does not include duty at 2.9%, merchandising processing fee at .3464%, or freight charges of $1,628. What is the entered value of this shipment?

a) 17372

b) 19000

c) 15067

d) 13017

e) 18403

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The Answer is: C

Citation: The invoice price of $19,000 converted to U.S. dollars, using the
exchange rate of .793021 equals $15067.40 for an entered value of
$15067.

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