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    Keymaster
    April 7, 2021 at 7:21 pm
    Post count: 72
    in reply to: Quiz 7 questions 11 and 12 are not complete #9765

    This has been corrected. Thank you.

    admin
    Keymaster
    April 4, 2021 at 8:41 pm
    Post count: 72
    in reply to: Date of exportation for currency conversion #9757

    This question is from the April 2005 Test, Question 54.
    The invoice provided in the question shows an invoice value of 236,000 Jordanian dinar. We are told that the official exchange rate was 0.7777 Jordanian dinar to 1 USD.

    § 159.32 The date of exportation for currency conversion shall be fixed in accordance with § 152.1(c) of this chapter.
    § 152.1(c) “Date of exportation,” or the “time of exportation” referred to in section 402, Tariff Act of 1930, as amended (19 U.S.C. 1401a), means the actual date the merchandise finally leaves the country of exportation for the United States.

    This shipment departed Jordan on March 16, 2005, when the official daily exchange rate was 0.7777 Jordanian dinar equals 1 U.S. dollar and that is the exchange rate prevailing on the date of export. The currency devaluation by 20% is irrelevant here as it took place after the date of export.

    To convert foreign currency to USD, you need to divide the amount of foreign currency by its exchange rate with the US dollar.

    236,000/0.7777 = $303,459 and so the correct answer is answer choice B.

    There is a short cut method to find the correct answer as well. Regardless of the currency used in the invoice, the entered value has to be in USD and so we need to convert any foreign currency to USD by applying the exchange rate.
    Here we are told that 0.7777 Jordanian dinars = 1 USD
    So 1 Jordanian dinar = 1/0.7777 = 1.286 USD.
    The invoice value is declared to be 236,000 Jordanian dinars and its equivalent has to be a greater number in USD. The answer choices are:
    A. $ 236,000
    B. $ 303,459
    C. $ 183,537
    D. JD 111,392,000
    E. JD 236,000

    D and E can be eliminated as those answers are not in USD. That leaves us with A, B and C choices. C is a smaller figure which cannot be correct. A is the same figure as in Jordanian dinar which is also not correct due to the exchange rate not being 1 dinar = 1 USD.
    The only answer that fits that requirement is the sole remaining answer choice B $303,459. By this type of short cut method of thinking, you can solve this question in under half a minute and save time for other questions.

    • This reply was modified 3 years ago by admin.
    • This reply was modified 3 years ago by admin.
    admin
    Keymaster
    April 2, 2021 at 8:59 pm
    Post count: 72
    in reply to: Incorrect Regulatory Audit Division city – Miami- Should read Charlotte #9752

    19 CFR § 163.5
    (b) Alternative method of storage –
    (1) General. Any of the persons listed in § 163.2 may maintain any records, other than records required to be maintained as original records under laws and regulations administered by other Federal government agencies, in an alternative format, provided that the person gives advance written notification of such alternative storage method to the Regulatory Audit, U.S. Customs and Border Protection, 2001 Cross Beam Dr., Charlotte, North Carolina 28217 …

    However, the 1998 version of this rule provided as follows:
    Any of the persons listed in § 163.2 may maintain any records, other than records required to be maintained as original records under laws and
    regulations administered by other Federal government agencies, in an
    alternative format, provided that the person gives advance written notification of such alternative storage method to the Director, Regulatory Audit Division, U.S. Customs Service, 909 S.E. First Avenue, Miami, Florida 33131 …

    In June 2012, paragraph (b)(3) was amended by removing the words ‘‘the Miami regulatory audit field office’’ and adding in their place the language, ‘‘Regulatory Audit, Office of International Trade, Customs and Border Protection, 2001 Cross Beam Drive, Charlotte, North
    Carolina 28217’’

    The answer to this question has therefore changed now due to the amendment of the regulations. Choice C was the correct answer at the time that this question was asked in a test because the reference material at that time provided C as the correct answer choice.

    admin
    Keymaster
    March 31, 2021 at 8:56 pm
    Post count: 72
    in reply to: The sequential logic of determining textile origin. #9731

    See 19 CFR § 102.21 – Rules of Origin for Textile and apparel products.

    (c) General rules. Subject to paragraph (d) of this section, the country of origin of a textile or apparel product will be determined by sequential application of paragraphs (c) (1) through (5) of this section and, in each case where appropriate to the specific context, by application of the additional requirements or conditions of §§ 102.12 through 102.19 of this part.

    (1) The country of origin of a textile or apparel product is the single country, territory, or insular possession in which the good was wholly obtained or produced.

    (2) Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) of this section, the country of origin of the good is the single country, territory, or insular possession in which each foreign material incorporated in that good underwent an applicable change in tariff classification, and/or met any other requirement, specified for the good in paragraph (e) of this section.

    (e) Specific rules by tariff classification.

    (1) The following rules will apply for purposes of determining the country of origin of a textile or apparel product under paragraph (c)(2) of this section:

    Except for goods of heading 6213 through 6214 provided for in paragraph (e)(2) of this section, the country of origin of a good classifiable under heading 6213 through 6214 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.

    Here the yarn was woven into fabric in China which is the correct answer choice D.

    admin
    Keymaster
    March 31, 2021 at 8:24 pm
    Post count: 72
    in reply to: Markings – merchandise that is not legally marked #9728

    § 134.51 Procedure when importation found not legally marked.
    (a) Notice to mark or redeliver. When articles or containers are found upon examination not to be legally marked, the Center director shall notify the importer on Customs Form 4647, or its electronic equivalent, to arrange with the Center director’s office to properly mark the article or containers, or to return all released articles to Customs custody for marking, exportation, or destruction.

    So the options available to the importer are to properly mark the article or containers, or to return all released articles to Customs custody for marking, exportation, or destruction.

    Options B,C,D and E are not available to the importer. Option A is available as the non compliant goods can be exported. Therefore, the correct answer is A. export the noncompliant goods from the Customs territory

    admin
    Keymaster
    March 31, 2021 at 8:15 pm
    Post count: 72
    in reply to: Maximum penalty for negligent entry record production by importer #9727

    The question asks what is the maximum penalty that can be assessed against an importer who is negligent in producing entry records.

    There are three points worth noting here. The first point is that this involves negligence. The second point is that you are required to identify the maximum penalty that can be imposed. The third point is that the maximum penalty is the lower of the two possible amounts.

    Where negligence is involved, 19 CFR 163.6(b)(ii) applies which states that the maximum penalty shall not exceed $10,000, or an amount equal to 40 percent of the appraised value of the merchandise, whichever amount is less.

    So if the merchandise was worth even a billion dollars, the maximum penalty would still be limited to the maximum amount of $10,000.
    On the other hand, if the merchandise was worth only $100, the maximum penalty would be the lower of $10,000 or 40% of $100 which is $40 only.

    Because the upper limit of $10,000 is the maximum penalty that can be imposed, irrespective of merchandise value, the correct answer is $10,000 for cases involving negligence. That is answer choice C which is the correct answer.

    However, this question could have been written better by providing the merchandise value. Also note that choice E is missing the $ sign and states 75,000. It is unclear whether this is $75,000 or 75,000 pieces or something else. Perhaps these are potential grounds for appeal.

    admin
    Keymaster
    March 31, 2021 at 4:33 pm
    Post count: 72
    in reply to: Record-keeping requirements for Customs warehouse #9724

    Here, the questions asks us to identify a record-keeping requirement which the proprietor of a Customs warehouse is not required to comply with. If you eliminate the ones that he is required to comply with, you will be left with the one which is not required to be complied with.

    19 CFR § 19.12
    (4) Permit file folders –
    (d) Accountability for merchandise in a warehouse –
    (i) Maintenance. Permit file folders must be maintained and kept up to date by filing all receipts, damage or shortage reports, manipulation requests, withdrawals, removals and blanket permit summaries within five business days after the event occurs.

    Therefore D is something that a proprietor of a Customs bonded warehouse would be required to comply with.

    (3) Theft, shortage, overage or damage –
    (i) General. Except as otherwise provided in paragraph (d)(3)(ii) of this section, any theft or suspected theft or overage or any extraordinary shortage or damage (equal to one percent or more of the value of the merchandise in an entry or covered by a unique identifier; or if the missing merchandise is subject to duties and taxes in excess of $100) must be immediately brought to the attention of the port director, and confirmed in writing within five business days after the shortage, overage, or damage has been brought to the attention of the port director.
    (ii) Class 9 warehouses. With respect to Class 9 warehouses, any theft or suspected theft or overage or any extraordinary shortage or damage (equal to one percent or more of the merchandise in an entry or covered by a unique identifier; or if the missing merchandise is subject to duties and taxes in excess of $100) must be immediately brought to the attention of the port director, and confirmed in writing within 20 calendar days after the shortage, overage, or damage has been brought to the attention of the port director.

    Choice E requires theft or overage to be reported in writing within 2 business days. The regulations specify either 5 business days or 20 calendar days depending on the scenario. Reporting within 2 business days is not required under the regulations and hence E is the correct answer for this question.

    admin
    Keymaster
    October 11, 2017 at 10:43 am
    Post count: 72
    in reply to: new reply111 #1725
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