Use these additional facts to answer this question. Fast Broker, LLC (Fast) obtained additional documentation from the client stating that the country of origin of the Luxemburg Digital Press is Italy. Baltimore Quick Printers (BQ Printers) has already paid the broker's invoice. How much did Fast overcharge BQ Printers on the Broker Invoice?
How to get there
Check each customs line on the broker invoice (p. 13) against an entered value of $60,000 (the C.I.F. $94,200 minus $34,200 freight and insurance; the post-importation rebate is disregarded, see Q19):
- Duty $0.00: HTS 8443.32.50.00 is Free. Correct.
- Section 301 $4,500.00 (9903.88.15, +7.5% on "articles the product of China"): the press is a product of Italy (C/O "IT" on the commercial invoice, now confirmed). Not owed: $4,500 overcharge.
- MPF $207.84: 0.3464% × $60,000 = $207.84 (FY 2024 rate; below the maximum). Correct.
- HMF $75.00: the press arrived by air at Boston and moved by truck to Baltimore. No vessel was involved. Not owed: $75 overcharge.
19 CFR 24.24(a): Harbor maintenance feeCommercial cargo loaded on or unloaded from a commercial vessel is subject to a port use fee of 0.125 percent (.00125) of its value …
$4,500 + $75 = $4,575. The answer is C.
Why the other choices are wrong
A) $75.00: catches only the HMF and misses the Section 301 duty, which no longer applies to an Italian product.
B) $207.84: that's the MPF, which formal entries owe whatever the origin.
D) $4,782.84: the whole customs line. It wrongly treats the MPF as an overcharge.
Tip
HMF = vessels only. When an exam invoice shows an HMF on air or truck cargo, it's almost always a planted error. Section 301 follows country of origin, not where the goods shipped from.
Sources: HTSUS 8443.32.50, 9903.88.15; 19 CFR 24.23, 24.24(a), 152.103(a)(4) (eCFR); exam exhibits pp. 12, 13.
CBP answer key: Answer C · HTS 9903.88.15; 19 CFR 24.23; 19 CFR 24.24Source: CBP past exams ↗