The ABC Company in American Samoa manufactures alarm clocks with opto-electronic displays, classified under HTS (9105.11.40). The alarm clocks, which are shipped to the United States, contain foreign components from Japan, China and Taiwan. The total value of the foreign components is 55 percent. The proper rate of duty on these alarm clocks is:
A) 1.5% on the movement and case plus 2.1% on the battery.
B) 0.35
C) 3.9% on the movement and case plus 5.3% on the battery.
D) Free
E) 3.9% on the movement and case plus 2.1% on the battery.
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The Answer is: C
Citation: Additional U.S. Note 5 (a) (I), Chapter 91
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