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April 2026, question 20
Practical Exercise · Duties, MPF, HMF and calculations
Facts for questions 18 to 20, as CBP printed them:
As in the real world where client documents may contain errors, the practical exercise documents may contain errors. Examinees should review the documentation carefully and identify any errors. Any errors in the documentation should be taken into account when selecting an answer.
The charts below represent an excerpted CBP Form 7501 (Entry Summary). Although it is not a perfect replica, it contains all information necessary to answer the following three questions along with the following description. Use the following facts and excerpted CBP Form 7501 to answer questions 18-20.
A shipment of beauty products made in Quebec, Canada departs from the manufacturer’s warehouse on February 12, 2026, by truck (non-container) and enters the United States via the Port of Buffalo, New York on the same day. The merchandise is to be entered for consumption.
In the above entry summary, if USMCA did not apply for either line number, which ONE of the choices below best represents how Blocks 27-34 should be entered for line numbers 1 and 2?
- B)
- D)
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CBP's answer: D. D:
Without USMCA, line 1 (3304.99.50) stays Free of duty and line 2 (3307.30.50) is at the general rate of 4.9%, which gives $1,634.05 on $33,348. A formal entry also owes the 0.3464 percent merchandise processing fee on each line, shown as $396.39 and $115.52. Only D shows both the 4.9% duty and a fee line for each line number.
merchandise that is formally entered or released is subject to the payment to CBP of an ad valorem fee of 0.3464 percent 19 CFR 24.23(b)(1)(i)(A)
Perfumed bath salts and other bath preparations: > Other 4.9% HTSUS 3307.30.50
Search for: merchandise processing fee 0.3464
CBP's key cites: ACE Entry Summary Instructions; 19 CFR 24.23
Change watch: § 24.23 changed in the April 1, 2026 eCFR (the quoted text is unchanged).
Question and key from CBP's April 2026 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).