Textbook chapter 1
Calculate duty, MPF, and HMF in the correct order
Answer first
Compute ordinary duty from the correct customs-value or quantity base and the designated HTS rate. Apply MPF and HMF to their own statutory bases only after testing entry type, vessel and port facts, program exemptions, and annually adjusted limits. Answer first: calculate duty from the proper customs value or statutory quantity and the exam-designated HTS rate. For a formal entry, MPF is generally 0.3464 percent of the §1401a value, subject to exemptions and annually adjusted minimum and maximum amounts. HMF is 0.125 percent of value only for covered commercial-vessel cargo and ports, subject to its exemptions. Do not apply either percentage to the duty amount. October 2026 answers use the 2026 HTS Basic and 2025 Annual CFR; current rates and annually adjusted fee caps require a separate live-law check.
Rule breakdown
Controlling rule and limits
19 CFR 24.23(b)(1)(i) and 24.22(k); 19 CFR 24.24(a) and 24.24(c); HTSUS applicable tariff line and General Note 3 ↗Answer first: calculate duty from the proper customs value or statutory quantity and the exam-designated HTS rate. For a formal entry, MPF is generally 0.3464 percent of the §1401a value, subject to exemptions and annually adjusted minimum and maximum amounts. HMF is 0.125 percent of value only for covered commercial-vessel cargo and ports, subject to its exemptions. Do not apply either percentage to the duty amount. October 2026 answers use the 2026 HTS Basic and 2025 Annual CFR; current rates and annually adjusted fee caps require a separate live-law check. The learning objective is to calculate line duty and separately test the value base, mode, port, exemptions, and annual limits for MPF and HMF.; exceptions and triggering facts must be identified before calculation or conclusion.
Authority navigation and proof
19 CFR 24.23(b)(1)(i) and 24.22(k); 19 CFR 24.24(a) and 24.24(c); HTSUS applicable tariff line and General Note 3 ↗Compute ordinary duty from the correct customs-value or quantity base and the designated HTS rate. Apply MPF and HMF to their own statutory bases only after testing entry type, vessel and port facts, program exemptions, and annually adjusted limits. Navigate the controlling material through Part 24 → MPF rate, value base, exemptions, and annual adjustments; Part 24 → HMF rate, vessel and port conditions, and exemptions; 2026 HTS Basic → classified tariff line → applicable rate column; then General Note 3. Record the decisive text and fact rather than relying on memory or a search snippet.
Decision path
- 1
Set the legal gate for Calculate duty, MPF, and HMF in the correct order
Calculate line duty and separately test the value base, mode, port, exemptions, and annual limits for MPF and HMF. Separate the controlling trigger from descriptive labels, then list the facts that could activate an exception or a different legal path.
- 2
Prove the rule in 19 CFR 24.23(b)(1)(i) and 24.22(k)
For one entry, find the HTS duty rate, customs-value base, MPF rule and limits, then the HMF mode, port, and exemption conditions. Use this route: Use the designated HTS first, then §§24.23 and 24.24; keep duty, MPF, and HMF on separate calculation lines.. Preserve the exact subsection, field instruction, note, or rate line that supports the answer.
- 3
Test the boundary of Calculate duty, MPF, and HMF in the correct order
Compute ordinary duty from the correct customs-value or quantity base and the designated HTS rate. Apply MPF and HMF to their own statutory bases only after testing entry type, vessel and port facts, program exemptions, and annually adjusted limits. Apply that boundary to the stated facts, identify the fact that would reverse the result, and only then adopt the worked-example conclusion: The stated total is $2,188.56, subject to the problem's no-exemption and within-limits assumptions.
Worked example
Scenario: Customs value is $40,000, the ad valorem duty rate is 5 percent, and a formal vessel entry unloads at a covered port with no fee exemption. The raw MPF falls within the applicable annual limits.
- 1.Calculate duty: $40,000 × 5% = $2,000.
- 2.Calculate MPF from value, not duty: $40,000 × 0.3464% = $138.56.
- 3.Calculate HMF from value: $40,000 × 0.125% = $50.
- 4.Add the three separate amounts: $2,000 + $138.56 + $50 = $2,188.56.
- 5.Boundary check: change one decisive fact identified by this research task—For one entry, find the HTS duty rate, customs-value base, MPF rule and limits, then the HMF mode, port, and exemption conditions.—and explain whether the conclusion would change under 19 CFR 24.23(b)(1)(i) and 24.22(k); 19 CFR 24.24(a) and 24.24(c); HTSUS applicable tariff line and General Note 3.
Conclusion: The stated total is $2,188.56, subject to the problem's no-exemption and within-limits assumptions.
Common traps and corrections
× Applying MPF or HMF to the duty amount instead of the proper value base.
✓ This shortcut fails because “Applying MPF or HMF to the duty amount instead of the proper value base.” skips a controlling distinction. Compute ordinary duty from the correct customs-value or quantity base and the designated HTS rate. Apply MPF and HMF to their own statutory bases only after testing entry type, vessel and port facts, program exemptions, and annually adjusted limits. Re-run the source route in Use the designated HTS first, then §§24.23 and 24.24; keep duty, MPF, and HMF on separate calculation lines. and state the decisive fact before selecting the result.
× Skipping the vessel, covered-port, trade-program, or other exemption analysis.
✓ This shortcut fails because “Skipping the vessel, covered-port, trade-program, or other exemption analysis.” skips a controlling distinction. Compute ordinary duty from the correct customs-value or quantity base and the designated HTS rate. Apply MPF and HMF to their own statutory bases only after testing entry type, vessel and port facts, program exemptions, and annually adjusted limits. Re-run the source route in Use the designated HTS first, then §§24.23 and 24.24; keep duty, MPF, and HMF on separate calculation lines. and state the decisive fact before selecting the result.
× Applying Calculate duty, MPF, and HMF in the correct order without proving both the decisive fact and the controlling source edition.
✓ Compute ordinary duty from the correct customs-value or quantity base and the designated HTS rate. Apply MPF and HMF to their own statutory bases only after testing entry type, vessel and port facts, program exemptions, and annually adjusted limits. Navigate the controlling material through Part 24 → MPF rate, value base, exemptions, and annual adjustments; Part 24 → HMF rate, vessel and port conditions, and exemptions; 2026 HTS Basic → classified tariff line → applicable rate column; then General Note 3. Record the decisive text and fact rather than relying on memory or a search snippet. For the October 2026 CBLE, use the designated edition; for live work, separately date and verify the current source rather than blending the two lanes.
Frequently asked questions
Which fact controls first when applying Calculate duty, MPF, and HMF in the correct order?
Compute ordinary duty from the correct customs-value or quantity base and the designated HTS rate. Apply MPF and HMF to their own statutory bases only after testing entry type, vessel and port facts, program exemptions, and annually adjusted limits. Start with 19 CFR 24.23(b)(1)(i) and 24.22(k), identify the trigger and any exception, and use the decision path before calculating or choosing a familiar label.
Where should I verify Calculate duty, MPF, and HMF in the correct order for the exam and for live work?
Use the cited exam-edition source cards for the October 2026 CBLE and preserve their pinpoint text. For a live transaction, separately re-check the current statute, eCFR, HTS, or CBP operational source listed for this chapter; a newer source does not silently rewrite the exam edition.
Official sources and editions
- 19 CFR Part 152 (2025): Title 19 CFR, 2025 Annual Edition, Part 152
October 2026 CBLE-designated 2025 Annual CFR valuation rules; current eCFR is a separate live-law check.
Last reviewed: 2026-08-19
- 19 CFR Part 24 (2025): Title 19 CFR, 2025 Annual Edition, Part 24
Exam-designated fee rules; annual MPF limits and current operational amounts require a separate live-law check.
Last reviewed: 2026-08-19
- 19 U.S.C. 1401a: Value ↗
Official current U.S. Code valuation statute; use the 2025 Annual CFR when the October 2026 exam asks a regulatory question.
Last reviewed: 2026-08-19
- 19 CFR 24.23(b)(1)(i) and 24.22(k): Part 24 → MPF rate, value base, exemptions, and annual adjustments
October 28, 2026 CBLE: Title 19 CFR, 2025 Annual Edition. Check the current eCFR separately for live-law work. Reviewed for this textbook chapter on 2026-08-19.
Last reviewed: 2026-08-19
- 19 CFR 24.24(a) and 24.24(c): Part 24 → HMF rate, vessel and port conditions, and exemptions
October 28, 2026 CBLE: Title 19 CFR, 2025 Annual Edition. Check the current eCFR separately for live-law work. Reviewed for this textbook chapter on 2026-08-19.
Last reviewed: 2026-08-19
- HTSUS applicable tariff line and General Note 3: 2026 HTS Basic → classified tariff line → applicable rate column; then General Note 3 ↗
October 28, 2026 CBLE: 2026 HTS Basic Edition. Later current-law revisions must not replace the exam-designated Basic Edition. Reviewed for this textbook chapter on 2026-08-19.
Last reviewed: 2026-08-19