In the above entry summary, if USMCA did not apply for either line number, which ONE of the choices below best represents how Blocks 27-34 should be entered for line numbers 1 and 2?
How to get there
Without USMCA, two things change. Each line takes its general (column 1) duty rate, and the merchandise processing fee (MPF) is back, because USMCA-originating goods are what was exempt from it.
1. Duty rates (HTSUS, general column)
HTSUS3304.99.50.00 Beauty or make-up preparations, other: Free
3307.30.50.00 Bath preparations, other: 4.9%
3307.30.50.00 Bath preparations, other: 4.9%
2. The math
CalculationLine 001 duty: Free → $0.00
Line 001 MPF: $114,432 × 0.3464% = $396.39
Line 002 duty: $33,348 × 4.9% = $1,634.05
Line 002 MPF: $33,348 × 0.3464% = $115.52
Total MPF $511.91, between the per-entry minimum and maximum, so no adjustment.
Line 001 MPF: $114,432 × 0.3464% = $396.39
Line 002 duty: $33,348 × 4.9% = $1,634.05
Line 002 MPF: $33,348 × 0.3464% = $115.52
Total MPF $511.91, between the per-entry minimum and maximum, so no adjustment.
Only D shows all four amounts: free duty and MPF on line 1, 4.9% duty and MPF on line 2.
Why the other choices are wrong
A) Has the right duty on line 2 but no MPF at all. Without USMCA, the formal entry owes MPF.
B) Shows MPF on both lines but leaves line 2's duty as Free. 3307.30.50 is 4.9% under the general rate. "Free" here only comes from special programs, and USMCA doesn't apply.
C) Charges MPF on line 2 only. MPF is ad valorem on every line of a formal entry, including duty-free lines. Free duty doesn't mean free of MPF.
Trap!
"Free" duty ≠ no MPF. MPF exemptions come from the trade program (USMCA and other FTAs claimed with the right SPI), not from a zero duty rate. And remember the Canadian context: the original 7501 showed both lines Free with no MPF because USMCA was claimed.
Sources: HTSUS 3304.99.50, 3307.30.50 (USITC); 19 CFR 24.23 (MPF); ACE Entry Summary Instructions v2.4a (Formal MPF class code 499; "Goods originating under a Free Trade Agreement (FTA) may be exempt from MPF").
CBP answer key: Answer D · ACE Entry Summary Instructions pgs. 13-14 and 29; 19 CFR 24.23Source: CBP past exams ↗