Christopher is a ceramist in Costa Rica and wants to export a shipment of ceramic ware to the U.S. that is appraised at $15,000. The clay used in the production of the shipment is of Costa Rican origin and is valued at $700. The base coat paint applied to the ceramic ware is of Puerto Rican origin and is valued at $2,000. The colored paint used to decorate the ceramic ware is of English origin and is valued at $4,000. The glaze used to protect and make the ceramic ware dishwasher safe is of U.S. origin and is valued at $3,000. The direct costs of processing in Costa Rica is 1050 The production of the ceramic ware in Costa Rica results in a substantial transformation of the imported components into a “product of” Costa Rica. You, as a Customs broker, are asked to determine if the ceramic ware meets the 35% value content requirement as stipulated in the Caribbean Basin Economic Recovery Act (CBERA). For the purposes of the 35% value content requirement for the ceramic ware under the CBERA, which ONE of the following amounts is the “sum of the cost or value of the materials produced in a beneficiary country or two or more beneficiary countries plus the direct costs of processing operations performed” in Costa Rica?
A) 6750
B) 6000
C) 10750
D) 4750
E) 1750
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The Answer is: B
Citation: HTS General Note 7(b) & 19 CFR 10.195
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