What are the two exceptions where the time of duty does not equal the duty right?

The correct answer highlights the instances where the timing of duty liability diverges from the duty right—specifically in transportation entry and warehouse entry scenarios.

In the context of customs procedures, transportation entry refers to the process whereby merchandise is transported into the United States but may not yet be liable for duty under certain circumstances. Essentially, when goods are transported under certain conditions, duties might not be assessed until they are formally entered into the commerce of the country.

Warehouse entry, on the other hand, allows importers to store goods in a bonded warehouse without immediately incurring duty. Duties are deferred until the goods are withdrawn from the warehouse for consumption or use. This mechanism provides flexibility and helps businesses manage cash flow and inventory more effectively.

Understanding these exceptions is crucial because they illustrate the nuances of customs regulations and the management of duty payments based on the status of imported goods at any given point in time. This ensures compliance with customs regulations while optimizing the costs associated with shipping and storing goods.