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Sign inOct2019 · Q61 · Practical Exercise
Duty, taxes and fees on 5,500 pieces of cotton patchwork fabric in the 2019 HTSUS: value, 7% duty, MPF, and why an air shipment owes no HMF
Use the 2019 Basic Edition and the original invoice only. The invoice gives 5,500 pieces of printed 100% cotton plain-weave patchwork fabric at 2.35 USD each, country of origin Venezuela, carried by Venezuela Airlines to the port of unlading Chicago, IL, with GW 1250 kg and NW 1200 kg. Compute the duty, taxes and fees in four steps. Value: 5,500 x 2.35 = 12,925.00 USD, which matches the invoice total. The invoice is already in USD, so no currency conversion is needed. Duty: classification 6307.90.9889 is carried forward from the scoped Q60 lesson and is not proved again here. Page 63-23 shows the 6307.90.98 General rate as 7% ad valorem. 12,925.00 x 7% = 904.75 USD. The gross weight (1250 kg) and net weight (1200 kg) are not inputs, because a purely ad valorem rate uses value, not weight. Endnote 3/ on that rate points to 9817.57.01 and to temporary 9902 provisions. The invoice gives no facts that claim any of them, so the lesson applies the General 7%, as the official key does, and assumes no special-program preference. MPF: 19 CFR 24.23(b)(1)(i)(A) sets a formal-entry ad valorem fee of 0.3464%. 12,925.00 x 0.3464% = 44.772200, which rounds to 44.77 USD. The CFR figures of $25 and $485 are FY2014 base amounts adjusted each fiscal year, not the actual fees. The actual limits were min 26.22 / max 508.70 for FY2019 (from October 1, 2018) and min 26.79 / max 519.76 for FY2020 (from October 1, 2019). The invoice is dated July 9, 2019, but the actual entry date is not given, so the lesson does not treat the invoice date as the entry date. It does not need to choose a fiscal year, because 44.77 falls inside both ranges. The lesson treats this as an ordinary formal entry. It adds no manual-entry surcharge, because the case gives no facts for one. HMF: 19 CFR 24.24(a) charges 0.125% only on commercial cargo loaded on or unloaded from a commercial vessel at a listed port. The 24.24 port list does include the Southern Lake Michigan Ports (3901 Chicago, IL), which cover Chicago Harbor and the Chicago River. But the carrier here is Venezuela Airlines, so there is no vessel unloading and the vessel trigger is not met. The lesson does not claim that Chicago is exempt from HMF in general. Total: 904.75 + 44.77 = 949.52 USD, which matches the preserved official answer B. Not taught: any 2026 or FY2027 figure, any Chapter 99 or Venezuela-specific measure, any preference or FX, any option-by-option walkthrough or answer letter.
What you will learn
Use the 2019 Basic Edition and the original invoice only. The invoice gives 5,500 pieces of printed 100% cotton plain-weave patchwork fabric at 2.35 USD each, country of origin Venezuela, carried by Venezuela Airlines to the port of unlading Chicago, IL, with GW 1250 kg and NW 1200 kg. Compute the duty, taxes and fees in four steps. Value: 5,500 x 2.35 = 12,925.00 USD, which matches the invoice total. The invoice is already in USD, so no currency conversion is needed. Duty: classification 6307.90.9889 is carried forward from the scoped Q60 lesson and is not proved again here. Page 63-23 shows the 6307.90.98 General rate as 7% ad valorem. 12,925.00 x 7% = 904.75 USD. The gross weight (1250 kg) and net weight (1200 kg) are not inputs, because a purely ad valorem rate uses value, not weight. Endnote 3/ on that rate points to 9817.57.01 and to temporary 9902 provisions. The invoice gives no facts that claim any of them, so the lesson applies the General 7%, as the official key does, and assumes no special-program preference. MPF: 19 CFR 24.23(b)(1)(i)(A) sets a formal-entry ad valorem fee of 0.3464%. 12,925.00 x 0.3464% = 44.772200, which rounds to 44.77 USD. The CFR figures of $25 and $485 are FY2014 base amounts adjusted each fiscal year, not the actual fees. The actual limits were min 26.22 / max 508.70 for FY2019 (from October 1, 2018) and min 26.79 / max 519.76 for FY2020 (from October 1, 2019). The invoice is dated July 9, 2019, but the actual entry date is not given, so the lesson does not treat the invoice date as the entry date. It does not need to choose a fiscal year, because 44.77 falls inside both ranges. The lesson treats this as an ordinary formal entry. It adds no manual-entry surcharge, because the case gives no facts for one. HMF: 19 CFR 24.24(a) charges 0.125% only on commercial cargo loaded on or unloaded from a commercial vessel at a listed port. The 24.24 port list does include the Southern Lake Michigan Ports (3901 Chicago, IL), which cover Chicago Harbor and the Chicago River. But the carrier here is Venezuela Airlines, so there is no vessel unloading and the vessel trigger is not met. The lesson does not claim that Chicago is exempt from HMF in general. Total: 904.75 + 44.77 = 949.52 USD, which matches the preserved official answer B. Not taught: any 2026 or FY2027 figure, any Chapter 99 or Venezuela-specific measure, any preference or FX, any option-by-option walkthrough or answer letter.
HTSUS (2019 Basic) Chapter 63, page 63-23, subheading 6307.90.98 and statistical suffix 89; HTSUS (2019 Basic) Chapter 63 endnotes, page 63-26; 19 CFR 24.23 introductory text and (b)(1)(i)(A)-(B), (b)(1)(ii), revised as of April 1, 2018; 19 CFR 24.24(a) and (b)(1) port list (Illinois: Southern Lake Michigan Ports), revised as of April 1, 2018; CBP notice of FY2019 MPF limits, as recorded in the independent review record (mpfYear.FY2019); CBP notice of FY2020 MPF limits, as recorded in the independent review record (mpfYear.FY2020); October 17, 2019 CBLE, Category X Practical Exercise commercial invoice for questions 59-61 (Fabrica de Artigos de Vestuario Top Job, invoice US001836); October 2019 CBLE question 61 stem and official answer key line 61 (historical original excerpt) · The exam cover (October 17, 2019) lists the HTSUS as '2018 and/or 2019 Basic Edition, No Supplements'. That cover wording is taken from the sibling 2019oct-q57 draft and was not reopened here. This lesson uses only the 2019 Basic Edition. Sources used: 2019 Basic table page 63-23 (6307.90.98, General rate 7% with endnote 3/), the Chapter 63 endnotes page 63-26 (3/ See 9817.57.01, 9902.13.80 and 9902.13.82 through 9902.13.91), and 19 CFR 24.23 and 24.24 in the April 1, 2018 edition (MPF 0.3464% ad valorem with adjusted base minimum $25 and maximum $485; HMF applies only to cargo loaded on or unloaded from a commercial vessel at a listed port). The MPF minimum and maximum actually in force come from the CBP FY2019 and FY2020 fee notices, as summarised in the independent review record. The original Category X commercial invoice image is the third source. This is a historical 2019 Basic calculation lesson only. Classification 6307.90.9889 is carried forward from the scoped Q60 reading and is not proved again here. No current-law rate, no FY2027 fee, no Chapter 99 or country-specific additional duty, no preference and no FX is taught.
Explained using the historical edition for this exam.