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Sign inApr2023 · Q5 · Practical Exercise
Splitting a quota warehouse withdrawal: using the exam's supplied 12% rate, only the 3,000 kg outside the 5,000 kg quota allocation is dutiable in this problem — 3,000 × $11.36 = $34,080; 12% = $4,089.60
Use only the April 2023 exam's stated facts and its prescribed historical references. Step 1, the given inputs: the shared facts state that the importer has selected 0406.90.0890 at 12% as the correct classification and rate (original lines 68-70), and the original invoice lists cheddar cheese at $11.36 per kilogram. The lesson takes both as supplied; it does not reclassify. Step 2, the quantity split: the question withdraws 8,000 kg from the bonded warehouse, and Headquarters Quota has notified the broker that only 5,000 kg remain eligible under the quota (original lines 118-120). BRPD 10.5 lists entry type 32 as warehouse withdrawal for quota (8.1, 13.0) and requires the warehouse proprietor to verify the quantity accepted by CBP Quota before release (13.1 note). 8,000 - 5,000 = 3,000 kg outside the allocation. Step 3, value: 3,000 kg × $11.36 = $34,080. Step 4, duty at the supplied rate: $34,080 × 12% = $4,089.60, which matches the preserved historical answer key (key line 5: HTSUS Chapter 4 US Note 18, ACE BRPD Chapters 8 and 13). Step 5, scope: 12% is the exam's supplied rate, not a universal out-of-quota cheese rate. The same 2022 table prints 0406.90.12 (other cheddar) at $1.227/kg, and Additional U.S. Note 18 ties the 0406.90.08 provision to quantity limits and, except under 18(c), import licenses. Under the exam's stated assumptions the 5,000 kg within the allocation carry no duty in this calculation; the lesson does not prove USMCA qualification, origin, license status, or current quota availability, and gives no 2026 duty. Not taught: any option list, answer letter, question number or distractor walkthrough on screen or in narration.
What you will learn
Use only the April 2023 exam's stated facts and its prescribed historical references. Step 1, the given inputs: the shared facts state that the importer has selected 0406.90.0890 at 12% as the correct classification and rate (original lines 68-70), and the original invoice lists cheddar cheese at $11.36 per kilogram. The lesson takes both as supplied; it does not reclassify. Step 2, the quantity split: the question withdraws 8,000 kg from the bonded warehouse, and Headquarters Quota has notified the broker that only 5,000 kg remain eligible under the quota (original lines 118-120). BRPD 10.5 lists entry type 32 as warehouse withdrawal for quota (8.1, 13.0) and requires the warehouse proprietor to verify the quantity accepted by CBP Quota before release (13.1 note). 8,000 - 5,000 = 3,000 kg outside the allocation. Step 3, value: 3,000 kg × $11.36 = $34,080. Step 4, duty at the supplied rate: $34,080 × 12% = $4,089.60, which matches the preserved historical answer key (key line 5: HTSUS Chapter 4 US Note 18, ACE BRPD Chapters 8 and 13). Step 5, scope: 12% is the exam's supplied rate, not a universal out-of-quota cheese rate. The same 2022 table prints 0406.90.12 (other cheddar) at $1.227/kg, and Additional U.S. Note 18 ties the 0406.90.08 provision to quantity limits and, except under 18(c), import licenses. Under the exam's stated assumptions the 5,000 kg within the allocation carry no duty in this calculation; the lesson does not prove USMCA qualification, origin, license status, or current quota availability, and gives no 2026 duty. Not taught: any option list, answer letter, question number or distractor walkthrough on screen or in narration.
April 26, 2023 CBLE directions (required references), Category I shared facts and question 5 stem (lines 11-19, 58-70, 118-120); April 2023 CBLE Category I commercial invoice DDWI-10056 (physically viewed image); April 2023 CBLE answer key, line for question 5 (line 1022); HTSUS 2022 Basic Edition, Chapter 4, Additional U.S. Note 18(a)-(c) (lines 217-239); HTSUS 2022 Basic Edition, Chapter 4 rate table, page 4-72 (physically viewed image); USITC primary historical release: HTSUS 2022 Basic Edition, Chapter 4 (URL as recorded in historical-current-batch03-20261012/review.md line 49); ACE Entry Summary BRPD (Trade-External) v10.5, Chapter 8 Quota, sections 8.1-8.6 (lines 1148-1248); ACE Entry Summary BRPD (Trade-External) v10.5, Chapter 13 Warehouse Entries and Withdrawals, sections 13.0-13.4 (lines 2392-2516) · Historical references prescribed by the April 26, 2023 Customs Broker License Examination directions (Apr2023-original-resume0102.pdf.txt lines 11-19): Harmonized Tariff Schedule of the United States, 2022 Basic Edition (January 2022), no supplements; Title 19 CFR, revised as of April 1, 2021; ACE Entry Summary Business Rules and Process Document (Trade-External) version 10.5, March 2021, chapters 1-25. This lesson uses the 2022 Basic Chapter 4 Additional U.S. Note 18(a)-(c) and the printed rate table on page 4-72 (subheadings 0406.90.08 and 0406.90.12), BRPD 10.5 Chapter 8 sections 8.1-8.6 (quota) and Chapter 13 sections 13.0-13.4 (warehouse entries and withdrawals). The classification 0406.90.0890 and the 12% rate are supplied by the exam's shared facts; the 5,000 kg quota allocation of an 8,000 kg withdrawal is supplied by the question; the $11.36/kg unit price is read from the original invoice. Nothing here is a current 2026 duty quotation or a statement of current quota availability.
Explained using the historical edition for this exam.