A shipment of plastic optical fibers manufactured in China is valued at $95,678.00 and imported under HTS 9001.10.0050. What is the total applicable duty amount for this shipment? Note: duties based upon Executive Orders which are not part of the examination references are not inlcuded.
How to get there
HTSUS9001.10.00 Optical fibers, optical fiber bundles and cables: 6.7% (general) → .50 Plastic optical fibers
9903.88.02 (Section 301, products of China): "The duty provided in the applicable subheading + 25%"
9903.88.02 (Section 301, products of China): "The duty provided in the applicable subheading + 25%"
The two rates stack:
Calculation6.7% + 25% = 31.7%
$95,678.00 × 31.7% = $30,329.93
$95,678.00 × 31.7% = $30,329.93
The answer is B. The note in the question excludes duties from Executive Orders that aren't part of the exam references, so only these two rates apply.
Why the other choices are wrong
Each distractor is a partial rate:
A) $6,410.43: only the 6.7% general rate. It leaves out the Section 301 duty.
C) $23,919.50: only the 25% Section 301 duty. It forgets the ordinary duty, which still applies ("the duty provided in the applicable subheading +").
D) $15,978.23: 16.7%, as if the Section 301 rate were 10% (an earlier list rate) instead of the 25% under 9903.88.02.
Tip
Chapter 99 headings usually say "the duty provided in the applicable subheading + X%." That means add the Chapter 99 rate to the regular rate. On a 7501, they're reported as separate HTS numbers on the same line.
Sources: HTSUS 9001.10.00.50; 9903.88.02 (USITC HTS). CBP key: 9001.10.0050, HTSUS; 9903.88.02, HTSUS.
CBP answer key: Answer B · 9001.10.0050, HTSUS; 9903.88.02, HTSUSSource: CBP past exams ↗