Tom Ritontopofit is a licensed broker in Seattle, Washington. He has a shipment of women’s polyester trousers, where the fabric was woven in China and then cut and sewn in Canada. Tom has verified the women’s trousers will qualify for the lower duty rate under NAFTA. The shipment is entered into the United States. Upon delivery to the importer, Tom learns that half of the shipment of trousers is in excess of the allowable quantity at the reduced quota rate. Which ONE of the following options is NOT available to Tom?
A) He may place the excess trousers in a foreign trade zone.
B) He may export the trousers which exceeded the amount.
C) He may destroy the trousers which exceeded the amount.
D) He may place the excess trousers in a bonded warehouse.
E) He may pay the higher duty rate on the entire shipment.
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The Answer is: E
Citation: 19 CFR 132.5(b)
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