Custom Broker License Practice Exam

The purpose of determining the appraised value is directly linked to duty assessment. When goods are imported into a country, customs authorities need to assess the value of those goods to calculate the appropriate duties and taxes that are owed. The appraised value serves as the basis for these calculations; it represents not just the purchase price but also includes other costs related to bringing the goods to the country, such as shipping and insurance costs.

Understanding the appraised value is essential for importers as it affects the overall cost of importing goods. Accurate appraisals ensure that the correct duties are paid and help prevent potential fines or overpayment. In contrast, while shipping costs, customs compliance, and inventory control are essential aspects of the import process, they are not the primary purpose of determining appraised value. Each of these elements serves different functions within the broader context of international trade and customs procedures.