How is the classification of goods determined under the Harmonized Tariff Schedule (HTS)?
Goods are classified according to the HTS based on a detailed description of their composition, function, and use, among other factors. This system helps ensure that tariffs are applied appropriately based on the nature of the goods.
What does the term "transaction value" refer to in customs valuation?
The "transaction value" is the primary method of customs valuation. It refers to the price paid or payable for the goods, including additional costs like shipping, insurance, and handling, but excluding customs duties.
Under the General Rules of Interpretation (GRIs) for the HTS, which factor is the most important in determining the classification of goods?
The classification of goods under the HTS is primarily based on the detailed description of the product. The HTS provides a systematic code structure to classify goods, ensuring proper application of tariffs.
Which of the following best describes the "deductive value" method of customs valuation?
The "deductive value" method uses the selling price of the goods in the U.S. market, less certain deductions for costs such as transportation and commissions, to determine the customs value of the imported goods.
What is the primary purpose of using a special tariff program, such as the Generalized System of Preferences (GSP)?
The Generalized System of Preferences (GSP) allows eligible goods from developing countries to enter the U.S. duty-free or at reduced tariff rates, promoting economic growth in those countries by encouraging trade.