Home / Past exams / April 2024 / Question 75
April 2024, question 75
Valuation, Appraisement and Duty Assessment · Valuation
An examining officer finds merchandise during a cargo inspection that is not invoiced. There is no evidence that smuggling was intended, and the failure to invoice the merchandise is conclusively a mistake. Which of the following is true regarding the duties on the merchandise found?
- Estimated duties are paid according to what is actually listed on the invoice.
- Duties are suspended until a new entry is made.
- Duties are assessed on the merchandise actually found.
- Duties are assessed based on whichever is the higher rate (merchandise listed on invoice versus merchandise actually found).
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CBP's answer: C. C: Duties are assessed on the merchandise actually found.
When merchandise does not match the invoice, duties are assessed on the merchandise actually found. If the discrepancy is a mistake and not an intent to defraud, no forfeiture proceedings are taken. That is C.
duties shall be assessed on the merchandise actually found 19 CFR 152.3
Search for: merchandise not corresponding with the description given in the invoice
CBP's key cites: 19 CFR 152.3
Question and key from CBP's April 2024 exam and answer key. The walk-through is ours; quotes are from the pinned editions in the reference viewer (HTSUS 2026 Basic, 19 CFR 2025 edition).