Duties, Taxes, and Revenue Collection
Duties, Taxes, and Revenue Collection
This domain tests how duty is calculated, which fees and taxes attach, and how CBP bills, liquidates, and refunds.
Duty structure
Duties are ad valorem (percentage of value), specific (fixed amount per unit), or compound (both). The HTSUS has three rate columns: Column 1 General (normal trade relations), Column 1 Special (preferential program rates), and Column 2 (non-NTR rates, largely on Cuba and North Korea).
Fees and add-ons
- Merchandise processing fee: 0.3464% ad valorem, with a minimum and maximum adjusted each fiscal year.
- Harbor maintenance fee: 0.125% of value on ocean cargo only.
- Antidumping and countervailing duties: paid as cash deposits at entry, later finalized at the administrative review rate.
- Section 301 and other trade-remedy duties are entered as separate HTS lines.
Liquidation
CBP liquidates an entry within 314 days of the entry summary date. If it does not, the entry liquidates by operation of law at the entered rate. A protest follows within 180 days; refunds carry interest.
Worked example
Ocean cargo is valued at $100,000, duty rate 3%. Duty is $3,000. MPF at 0.3464% is $346.40, which is inside the annual min/max band, so it is collected in full. HMF is 0.125% × $100,000 = $125. Total remitted with the summary: $3,471.40.
Traps
- Charging HMF on air or truck shipments.
- Ignoring the MPF minimum and maximum.
- Assuming a liquidation is final before the 314-day period and protest window run.