Question 26
Domain 4: Duty Calculations, Fees, and Trade ProgramsWhat is the Most Favored Nation rate of duty applicable to dried paprika?
Correct answer: A
Explanation
Dried paprika is classified under HTSUS heading 0904, and the tariff line for paprika provides a specific column 1 General rate. The source states the MFN rate as “3 cents/kg,” which is the applicable Most Favored Nation duty rate.
Why each option is right or wrong
A. 3 cents/kilogram
Dried paprika is classified in HTSUS heading 0904, and the specific tariff line for paprika carries a column 1 General (Most Favored Nation) rate of duty of 3 cents per kilogram. Under the HTSUS, that specific rate controls the MFN duty assessment for the merchandise described here, so the duty is not ad valorem but a fixed specific rate of 3 cents/kg.
B. 5 cents/kilogram
Paprika’s MFN rate is 3 cents/kg, not 5 cents/kg.
C. 11 cents/kilogram
Paprika’s MFN rate is 3 cents/kg, not 11 cents/kg.
D. 66 cents/kilogram
Paprika’s MFN rate is 3 cents/kg, not 66 cents/kg.