In which circumstance are the rates of duty at the time of entry not applicable?

The rates of duty at the time of entry are not applicable for merchandise entered for warehouse because this type of entry involves placing goods into a customs bonded warehouse. When merchandise is stored in a warehouse, duties are deferred until the goods are withdrawn for consumption in the country. This system allows importers to manage their cash flow and inventory more effectively, as they aren't required to pay duties until the goods are ready to enter the domestic market.

In contrast, merchandise entered as a gift is generally exempt from duties based on specific thresholds, and thus would encounter different regulations regarding duty rates. Merchandise in international transit is not considered to have entered the U.S. customs territory and therefore does not incur duty at entry. As for merchandise transferred between states, while there may be state-level taxes involved, it does not concern duty rates applicable at the federal level.