Marcel, a U.S. importer, imports certain traditional baskets from producers in South Sudan. These baskets are shipped by way of Greenland, where all invoices and other documents show Greenland as the final destination they remain under the relevant Customs authority’s control. Upon arrival in Greenland, the baskets are coated with a unique fish oil to improve shine and enable the bowl to stick to slippery glass surfaces. The baskets are then loaded onto new shipping pallets due to severe damage to the old pallets from the initial transatlantic shipment; without this reloading, the baskets would be damaged with any further shipment. The JFK port director, where the baskets are ultimately to be imported, is satisfied that the import stems from the transaction between the producers and Marcel. Which of the following is the principle reason that the baskets imported into the United States through JFK should not be considered direct imports from South Sudan to the United States?
A. Because the baskets were given a fish oil coating
B. Because the baskets were loaded onto new pallets
C. Because the invoices and other documents showed the export’s final destination as Greenland
D. Because the baskets had a stopover in Greenland
E. None of the above. Based on the facts of the question, the baskets are direct imports from South Sudan.
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The Answer is: A
Citation: 19 CFR 10.175(d)
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