Korean Boat Restorations LLP is investigating the viability of restoring used inboard motorboats (HTSUS 8903.92.00) of unknown origin in S. Korea for export to the United States. The restoration will include the disassembly, cleaning, replacing inoperable parts and reassembly. Can the motorboats enter the United States duty free under the Korea FTA?
A. Yes, the Korea FTA has a “recovered goods” provision and these boats meet the definition of a “recovered good.”
B. No, since the boats were not manufactured in S. Korea, they cannot meet the terms of the Korea FTA.
C. No, although the Korea FTA has a “remanufactured goods” provision, goods of chapter 89 are ineligible.
D. Yes, the Korea FTA has a “remanufactured goods” provision and these boats meet the definition of a “remanufactured good”.
E. No, although the goods can enter the U.S. under the Korea FTA, they will not be duty free because the duties are still phasing out.
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The Answer is: C
Citation: HTSUS GN 33(c)(ii)
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