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October 2026, question 80
Valuation, Appraisement and Duty Assessment · Duties, MPF, HMF and calculations
If the Merchandise Processing Fee (MPF) is 0.3464%, what is the MPF for the shipment described below if the MPF is higher than the minimum and lower than the maximum for the applicable fiscal year? A shipment of lighting parts from Italy is classified under 9405.99.4090, HTSUS, dutiable at 6%, and subject to antidumping duties of 13.19%. The buyer pays a total of $89,000.00 for the goods, which includes $4,500.00 ocean freight, $1,000.00 insurance, $250.00 for customs brokerage fees, $15,000.00 CBP duties and fees, MPF paid, and is delivered duty paid (DDP) to Los Angeles. The buyer pays an additional $500.00 for rail freight from Los Angeles to Kentucky.
- $241.25
- $289.24
- $308.30
- $425.00
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CBP's answer: A. A: $241.25
The $89,000 DDP price includes charges that are not part of the price actually paid or payable: international ocean freight and insurance (152.102(f)), the customs brokerage fee, and the customs duties and fees payable on importation (152.103(i)(2)). The U.S. rail freight is paid separately. Taking out $4,500, $1,000 and $250 leaves $83,250, which equals the value plus 6% duty, 13.19% antidumping duty and the 0.3464% MPF on that value. So value = $83,250 / 1.195364 = about $69,644, and the MPF is 0.3464% of that, $241.25. A is right.
The customs duties and other Federal taxes currently payable on the imported merchandise by reason of its importation 19 CFR 152.103(i)(2)
is based on the value of the merchandise as determined under 19 U.S.C. 1401a 19 CFR 24.23(b)(1)(i)(A)
Search for: exclusive of any charges, costs, or expenses incurred for transportation, insurance
CBP's key cites: 19 CFR 152.102(f); 19 CFR 152.105; 19 CFR 24.23(b)(1)(i)(A)
Change watch: § 24.23 changed in the April 1, 2026 eCFR (the quoted text is unchanged).
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).