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October 2024, question 46

Entry / Entry Summary · Foreign-trade zones, warehouses and in-bond

A foreign trade zone operator discovers missing merchandise from a lot within the zone. If a consumption entry was filed, the missing merchandise would have been subject to $500.00 in duties and taxes. What is the minimum amount of shortage in quantity of merchandise in a lot that requires a zone operator to file a written report to the port director immediately upon discovery?

  1. 1%
  2. 5%
  3. 10%
  4. 20%
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CBP's answer: A. A: 1%

An operator must report to the port director immediately on discovering a shortage of 1 percent or more of a lot (or unique identifier) when the missing goods would have carried $100 or more in duties and taxes. With $500 at stake, the threshold is 1 percent (A).

Shortage of one percent (1%) or more of the quantity of merchandise in a lot or covered by a unique identifier, if the missing merchandise would have been subject to duties and taxes of $100 or more upon entry into the Customs territory. 19 CFR 146.53(a)(3)

Search for: shortage of one percent or more of the quantity of merchandise in a lot

CBP's key cites: 19 CFR 146.53(a)(3)

Question and key from CBP's October 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).