Importer A imports women’s jackets from Hong Kong. They have agreed to an invoice price of $400,000. Subsequent to this agreement, Importer A decides to use a new textile material for the linings of their jackets, which is produced by a company in Germany, Company B. Importer A purchases the material for $20,000 and has Company B send the material directly to the manufacturer in Hong Kong. Company B charges Importer A $1500 for transportation expenses to Hong Kong. Upon entering the merchandise into the U.S., which ONE of the following is the correct appraised value?
A. 421500
B. 420000
C. 401500
D. 398500
E. 381500
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The Answer is: A
Citation: 19 CFR 152.102; 152.103(d)(1)
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