Home / April 2026 CBLE / Question 73

Toy trains sold DDP Newark: the question CBP voided (all examinees got credit)

April 2026 examValuation, Appraisement and Duty AssessmentQuestion 73 of 80

A shipment of toy trains manufactured in Vietnam is entered at $10 per unit, Delivered Duty Paid (“DDP”) Newark, NJ. The toy trains are delivered by truck from the factory in Dong Nai to the port in Ho Chi Minh, and then shipped via air freight from Ho Chi Minh to Newark. CBP was provided with a rated bill of lading from Ho Chi Minh, Vietnam to Newark, NJ. If applicable, the merchandise processing fee is greater than the minimum and less than the maximum. What is the transaction value of the merchandise bas ed on the following information? • 1500 toy trains; $10 each • Inland Freight – Dong Nai to Ho Chi Minh; $200 • Ocean Freight – Ho Chi Minh to Newark, NJ; $350

What happened

CBP's answer key for this question reads "All examinees granted credit." Whatever you chose, it was scored as correct. Here's why the question broke, and what it was testing.

Why the question couldn't be answered

  • Contradictory facts: the narrative says the trains were "shipped via air freight from Ho Chi Minh to Newark," but the cost list shows "Ocean Freight – Ho Chi Minh to Newark, NJ; $350."
  • Missing amounts: under DDP (Delivered Duty Paid) terms, the seller's price includes U.S. duties and fees, which are deducted from transaction value when included in the price. The question mentions the merchandise processing fee "if applicable" but gives no duty or MPF amounts to deduct.

The concept being tested

Transaction value is the price actually paid or payable, excluding certain identified costs that are included in it, such as:

  • the cost of international transportation (and insurance) to the U.S.;
  • U.S. duties and other federal taxes and fees (including the MPF) for which the seller is liable under DDP terms.

So for a DDP sale you start from the $15,000 price (1,500 × $10) and back out the identified international freight and the U.S. duties and fees built into it. Without the duty and fee figures, and with the freight mode in conflict, no listed option is reliably correct. That's why CBP voided it.

Tip
For DDP questions, list what the seller paid for that's included in the price and decide each item: international freight and insurance (deduct if identified), U.S. duties, taxes and fees (deduct), and foreign inland freight (depends on the facts). If the question doesn't give you the numbers you need, that's worth noting for an appeal.

Source: CBP April 2026 CBLE answer key ("All examinees granted credit"); 19 U.S.C. 1401a(b); 19 CFR 152.103.

CBP answer key: All examinees granted creditSource: CBP past exams ↗