24. Loudspeakers mounted in an enclosure were previously exported from the U.S. to Canada for repairs. The repaired speakers are re-exported to the U.S. and the importer claims preferential treatment under the North American Free Trade Agreement. The speakers are classifiable under subheading 8518.21.00 of the Harmonized Tariff Schedule of the United States (HTSUS), dutiable at 2.4% ad valorem. The importer enters the speakers under subheading 9802.00.50, HTSUS and substantiates the claim. The speakers are appraised at $8,000.00 and the value of the repairs is $1,800.00. What is the consumption duty on this merchandise?
A. $0.00
B. 43.2
C. $235.20
D. $192.00
E. 148.8
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The Answer is: B
Citation: U. S. Note 3(d) to subchapter II 98 of the HTSUS – Value of repairs $1800.00 x duty 2.4% = $43.20.
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