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Ad valorem duty
A percentage of the dutiable value, after taking international freight and insurance out of a CIF price.
Worked example
An importer enters goods of subheading 6210.40.55 (Garments, made up of fabrics of heading 5602, 5603, 5903, 5906 or 5907: Other), general rate 7.1%. The invoice shows a CIF price that includes separately stated international freight and insurance. What is the duty?
- CIF invoice price
- $30,845.92
- International freight (included)
- $3,460.74
- Insurance (included)
- $244.54
- General rate
- 7.1%
- Dutiable value excludes international freight and insurance (19 CFR 152.102(f)): $30,845.92 - $3,460.74 - $244.54 = $27,140.64.
- Duty = $27,140.64 x 7.1% = $1,926.99.
Answer: $1,926.99
Where it comes from: HTSUS 6210.40.55, 19 CFR 152.102(f)
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