ABC ships line telephone sets with cordless handsets to Mexico, which are classifiable under HTS 8517.11.0000, for repairs and alterations. Upon re-importation the owner/importer claims 9802.00.5060. They declare that the cost for the repair/alteration was $10,000 and the line telephone is valued on $3,000. There are no other goods in this shipment. What is the correct duty and Merchandise Processing Fee (MPF) to be assessed on this importation?
A. $78.00 in duty and $6.30 in MPF
B. $78.00 in duty and no MPF owed
C. No duty or MPF owed
D. No duty owed and MPF will be $25.00
E. No duty owed and MPF will be $6.30
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The Answer is: C
Citation: HTSUS Chapter 98 Subchapter II, U.S. Note
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