A manufacturer in the United States takes used car parts and refurbishes them for resale in the United States. He exports old car bumpers, which he buys for $70 each, to Brazil for repair of cracks and dents. He pays the Brazilian body shop $50 for the repairs to each bumper. The repaired bumpers are valued at $150 each. Upon import back into the United States, the bumpers are painted, polished, and then sold to customers for $200 each. The bumpers are classifiable under subheading 8708.10.30 of the Harmonized Tariff Schedule of the United States (HTSUS), dutiable at 2.5% ad valorem. What is the least amount of duty owed on this merchandise?
A. 5
B. 3.75
C. 0
D. 1.25
E. 3.25
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The Answer is : D
Citation: 19CFR?? 10.8 The duty rate for 9802.00.50 is based upon the value of the repairs or alterations. The value of the repairs is $50. $50 x duty 2.5% =
$1.25
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