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October 2025, question 66

Valuation, Appraisement and Duty Assessment · Valuation

USA Corporation imports a specialized machine that is disassembled and split into several shipments for delivery purposes. A specific tool is used to produce this machine, and the cost of that tool is added to the machine's value as an assist. USA Corporation decides to pay duties on the tool's entire value with the first shipment, rather than to split the tool's value between all of the machine's entries. What is the Customs term for this allocation of assists?

  1. Inclusion
  2. Deduction
  3. Proration
  4. Apportionment
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CBP's answer: D. D: Apportionment

Section 152.103(e)(1) is headed apportionment and lets the importer apportion the value of an assist over the first shipment, if it wishes to pay duty on the entire value at once, or over units produced or the entire anticipated production. The term is apportionment (D).

the total value may be apportioned over (i) the first shipment, if the importer wishes to pay duty on the entire value at once 19 CFR 152.103(e)(1)

Search for: Apportionment

CBP's key cites: 19 CFR 152.103(e)(1)

Question and key from CBP's October 2025 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).