Angels Accessories imports barrettes and sells them to retail stores in the U.S. Angels Accessories pays Sunshine Manufacturing Company (an unrelated company) in China $5,000 to produce 10,000 barrettes. Angels Accessories also: -1 Pays an additional $500 to Sunshine Manufacturing Company for a mold to be used in the production of the imported shipments of barrettes. The mold will be used in the production of this shipment only. -2 Provides Sunshine Manufacturing Company with Angels Accessories own U.S. produced detailed sketches of design specifications for the barrettes, free of charge, although it costs Angels Accessories $100 to produce them. -3 Provides Sunshine Manufacturing Company with certain metal fasteners, which Angels Accessories acquires from an unrelated company in Thailand, for $300, to be incorporated in the imported barrettes. Which ONE of the following is the correct appraised value for the imported barrettes?
A) 5800
B) 5000
C) 5500
D) 5900
E) 5500
[bg_collapse view=”button-green” color=”#4a4949″ icon=”arrow” expand_text=”Show Answer and Citation” collapse_text=”Hide Answer and Citation” ]
The Answer is: A
Citation: 19 CFR 152.103
[/bg_collapse]