April 2026, question 73

CBP gave credit for every answer.

CBP accepted every answer to this question. It tests which freight charges come out of a DDP price to reach transaction value. International freight is not part of the dutiable price, and foreign inland freight can be removed only if it is identified separately and the goods were sold for export and placed with a carrier for through shipment, shown by a through bill of lading (152.103(a)(5)). Here the rated bill of lading runs only from Ho Chi Minh, and the facts say air freight while the charge is labeled 'Ocean Freight', so the freight deductions were open to more than one reading. Removing only the $350 international freight gives $14,650.00, and removing the $200 inland freight as well gives $14,450.00.

A sale for export and placement for through shipment to the United States under paragraph (a)(5)(ii) of this section shall be established by means of a through bill of lading to be presented to CBP 19 CFR 152.103(a)(5)(iii)

if they are identified separately and they occur after the merchandise has been sold for export to the United States and placed with a carrier for through shipment to the United States 19 CFR 152.103(a)(5)(ii)

Search for: Foreign inland freight and other inland charges incident to the international shipment