An importer is entering $50,000 worth of gold jewelry which had previously been imported from Thailand and then exported for repairs under warranty. The broker classifies the repaired jewelry in subheading 9802.00.4040 of the HTSUS with a secondary classification of subheading 7113.19.5000 of the HTSUS. Which one of the following statements is true regarding the duty due?
A. The importer owes 5.5% duty on the value of the repairs.
B. The importer owes 5.5% duty on the total value of the jewelry, $50,000.
C. The importer owes no duty since the importer was not charged for the repairs under warranty.
D. The importer owes duty on the total value of the jewelry minus the value of the repairs.
E. The importer owes no duty because the goods qualify for duty free treatment under the GSP trade agreement.
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The Answer is: A
Citation: Section XXII Subchapter II U.S. Note 3 to 9802;
HTSUS 9802.00.4040; HTSUS 7113.19.5000
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