CustomsBrokerLicenseExam

Home / Past exams / October 2026 / Question 75

October 2026, question 75

Valuation, Appraisement and Duty Assessment · Tariff lookups: rates, units, programs

Tumbler USA imports a specialized mold from Spain with all duties, taxes, and fees paid. The mold, valued at $2,000.00, is then used in the production of goods in the United States. Five years after importing the mold, Tumbler USA sells the mold to company Mugs with Attitude (Mugs). Mugs exports the mold to a company in Canada for use in the production of goods in Canada. The Canadian company pays Mugs a rental fee for use of the mold. The rental of the mold is limited to no more than 3 years. The Canadian company uses the mold for 2.5 years to produce goods, does not change the mold in any way, and then ships it back to Mugs in the United States. The mold is returned to the United States in the same condition in which it was exported. Which ONE of the following statements about the duty associated with the mold is TRUE?

  1. The mold is eligible for duty-free entry under subheading 9801.00.10, HTSUS.
  2. The mold is dutiable based upon its original $2,000.00 value.
  3. The mold is dutiable based upon its original value less depreciation.
  4. The mold is fully dutiable upon importation into the United States from Canada.
Show the answer and walk-through

CBP's answer: A. A: The mold is eligible for duty-free entry under subheading 9801.00.10, HTSUS.

Subheading 9801.00.10 covers U.S. products returned after export, or any other products returned within 3 years after export, without having been advanced in value or improved in condition abroad. The mold was exported, rented for 2.5 years, and returned unchanged, so it comes back within 3 years and is free of duty, and A is right. 9801.00.20 also covers duty-paid articles reimported after export under a lease, but the question asks about 9801.00.10, and the mold is not dutiable.

any other products when returned within 3 years after having been exported, without having been advanced in value or improved in condition by any process of manufacture or other means while abroad HTSUS 9801.00.10

Search for: any other products when returned within 3 years after having been exported

CBP's key cites: HTSUS 9801.00.10; HTSUS 9801.00.20

Question and key from CBP's October 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).