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October 2025, question 75

Valuation, Appraisement and Duty Assessment · Rules of origin and trade programs

When determining if goods qualify for the United States-Colombia Free Trade Agreement, which of the following is NOT a permissible addition to the value of originating materials?

  1. The cost of freight and insurance to import U.S. origin raw material to produce Colombian goods.
  2. The duties and taxes paid on the importation of U.S. origin raw material to produce Colombian goods.
  3. The cost of wasted originating material that results from producing the originating finished good.
  4. The depreciated value of originating U.S. equipment used to produce Colombian goods.
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CBP's answer: D. D: The depreciated value of originating U.S. equipment used to produce Colombian goods.

Section 10.3016(c)(1) lists what may be added to the value of originating materials: freight, insurance, packing and transport costs to the producer's location, duties, taxes and brokerage fees paid in the territory of a Party, and the cost of waste and spoilage. The depreciated value of equipment is not on the list, so D is the item not permitted.

The cost of waste and spoilage resulting from the use of the material in the production of the good 19 CFR 10.3016(c)(1)(iii)
Duties, taxes, and customs brokerage fees on the material paid in the territory of one or both of the Parties 19 CFR 10.3016(c)(1)(ii)

Search for: Additions to originating materials

CBP's key cites: 19 CFR 10.3016(c)

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).