Member lesson
See the reasoning behind the question
Sign in with your existing membership to watch.
Sign inOct2019 · Q58 · Practical Exercise
Duty, taxes and fees on the 2019 knit jacket shipment: invoice value, net weight, a cents-to-dollars rate, and MPF, with HMF checked against the port list
Using the October 2019 invoice row (378 pieces at 25.00 USD, invoice total $9,450.00, GW 800 kg, NW 756 kg, country of origin Hong Kong, port of unlading 'Sailed-Key Largo, FL', carrier Seaway Express) and the 2019 Basic Edition, compute the duty, taxes and fees for an ordinary formal entry. Classification is carried forward from the Q57 lesson as the exam's scoped reading, 6102.30.1000 (leather collar piping read as trim, body read as 38/38/24); this lesson adds no new proof of leather weight. Step 1, value: 378 x $25.00 = $9,450.00; the invoice is already in U.S. dollars, so no exchange rate is used. Step 2, rate: the 2019 general rate for 6102.30.10 is a compound rate, 64.4 cents per kilogram plus 18.8 percent. Step 3, unit conversion: 64.4 cents per kilogram equals 0.644 dollars per kilogram. The official key prints the specific part as '64¢ kg' and as '.644¢/kg'; both are typos. The lesson states the precise value, 64.4 cents = $0.644, and keeps the key text unchanged as a historical record. Step 4, specific duty: the per-kilogram part uses the net weight, 756 kg, not the gross weight of 800 kg, which includes packing. 756 x $0.644 = $486.864, rounded to $486.86. Step 5, ad valorem duty: 18.8% x $9,450.00 = $1,776.60. Step 6, MPF: 0.3464% x $9,450.00 = $32.7348, rounded to $32.73. The $25 and $485 figures in 19 CFR 24.23 are base amounts adjusted each fiscal year, not the actual 2019 limits. The invoice is dated August 14, 2019 and the entry date is not given, so the lesson does not pick a fiscal year: $32.73 lies inside both the FY2019 range (minimum $26.22, maximum $508.70) and the FY2020 range (minimum $26.79, maximum $519.76), so the minimum and maximum do not change the result. Step 7, HMF: 19 CFR 24.24 applies 0.125 percent to cargo unloaded from a commercial vessel at a port on its list. Key Largo does not appear on the saved 2018 list, so the key adds no HMF. This is bounded: it is not a Florida-wide or universal exemption (the same list covers Key West, Miami, Port Everglades and other Florida ports), and a vessel unloading at a listed port would add 0.125 percent of value. Step 8, sum: each amount is rounded to cents and then added, as the key does: $1,776.60 + $486.86 + $32.73 = $2,296.19, matching the preserved official answer D. The case is treated as an ordinary formal entry with no facts for a manual-entry surcharge and no special-program preference claimed. Not taught: any current or 2026 rate, fee limit or additional duty, any Hong Kong all-in rate, any exchange rate, any option-by-option walkthrough or answer letter.
What you will learn
Using the October 2019 invoice row (378 pieces at 25.00 USD, invoice total $9,450.00, GW 800 kg, NW 756 kg, country of origin Hong Kong, port of unlading 'Sailed-Key Largo, FL', carrier Seaway Express) and the 2019 Basic Edition, compute the duty, taxes and fees for an ordinary formal entry. Classification is carried forward from the Q57 lesson as the exam's scoped reading, 6102.30.1000 (leather collar piping read as trim, body read as 38/38/24); this lesson adds no new proof of leather weight. Step 1, value: 378 x $25.00 = $9,450.00; the invoice is already in U.S. dollars, so no exchange rate is used. Step 2, rate: the 2019 general rate for 6102.30.10 is a compound rate, 64.4 cents per kilogram plus 18.8 percent. Step 3, unit conversion: 64.4 cents per kilogram equals 0.644 dollars per kilogram. The official key prints the specific part as '64¢ kg' and as '.644¢/kg'; both are typos. The lesson states the precise value, 64.4 cents = $0.644, and keeps the key text unchanged as a historical record. Step 4, specific duty: the per-kilogram part uses the net weight, 756 kg, not the gross weight of 800 kg, which includes packing. 756 x $0.644 = $486.864, rounded to $486.86. Step 5, ad valorem duty: 18.8% x $9,450.00 = $1,776.60. Step 6, MPF: 0.3464% x $9,450.00 = $32.7348, rounded to $32.73. The $25 and $485 figures in 19 CFR 24.23 are base amounts adjusted each fiscal year, not the actual 2019 limits. The invoice is dated August 14, 2019 and the entry date is not given, so the lesson does not pick a fiscal year: $32.73 lies inside both the FY2019 range (minimum $26.22, maximum $508.70) and the FY2020 range (minimum $26.79, maximum $519.76), so the minimum and maximum do not change the result. Step 7, HMF: 19 CFR 24.24 applies 0.125 percent to cargo unloaded from a commercial vessel at a port on its list. Key Largo does not appear on the saved 2018 list, so the key adds no HMF. This is bounded: it is not a Florida-wide or universal exemption (the same list covers Key West, Miami, Port Everglades and other Florida ports), and a vessel unloading at a listed port would add 0.125 percent of value. Step 8, sum: each amount is rounded to cents and then added, as the key does: $1,776.60 + $486.86 + $32.73 = $2,296.19, matching the preserved official answer D. The case is treated as an ordinary formal entry with no facts for a manual-entry surcharge and no special-program preference claimed. Not taught: any current or 2026 rate, fee limit or additional duty, any Hong Kong all-in rate, any exchange rate, any option-by-option walkthrough or answer letter.
HTSUS (2019 Basic) Chapter 61, page 61-6, subheading 6102.30.10, column 1 general rate; HTSUS (2019 Basic) Chapter 61, page 61-6 text layer (same rate as the page image); October 17, 2019 CBLE, Category X Practical Exercise commercial invoice US001836 (A.B.C. Company to Barbara's Closet); October 2019 CBLE question 58 stem and official answer key citation (historical original excerpt, kept verbatim including typos); 19 CFR 24.23(b)(1)(i)(A)-(B) and (b)(1)(ii), merchandise processing fee (saved 2018 text); 19 CFR 24.24(a) and (b)(1), harbor maintenance fee and list of ports (saved 2018 text, Florida entries); CBP fiscal-year MPF limits as recorded in the independent review (FY2019 / FY2020); CBP fiscal-year MPF limits as recorded in the independent review (second bulletin) · Exam cover (October 17, 2019) lists the Harmonized Tariff Schedule of the United States as '2018 and/or 2019 Basic Edition, No Supplements'. This lesson uses only the 2019 Basic Edition rate for 6102.30.10 (page 61-6). Fee rules: 19 CFR 24.23 (merchandise processing fee, 0.3464 percent; $25/$485 are base-year amounts subject to annual adjustment) and 19 CFR 24.24 (harbor maintenance fee, 0.125 percent, with its list of covered ports), read from the locally saved 2018 CFR text. Annual MPF limits for FY2019 and FY2020 come from the independent review record, not from a self-check. Historical 2019 Basic calculation lesson only. No current rate, no 2026 fee limits, no Chapter 99 or other additional duty, no Hong Kong all-in duty, no currency conversion.
Explained using the historical edition for this exam.