An importer’s first shipment of 10,000 units of electrical switches was invoiced for $100,000.00. The terms of sale are Delivered Duty Paid (DDP), the duty rate is 2.7 percent, and the merchandise processing and harbor maintenance fees (MPF and HMF) are 0.3464 percent and 0.125 percent, respectively. In addition, there are non-dutiable charges (NDCs) of $4,000.00 for ocean freight, and $600.00 for insurance and an added value amount of $2,000.00 on the invoice for a mold provided to the producer by the importer at no cost. The mold will produce 50,000 units, with full value applied to the first import of the molded articles. What is the transaction value for this shipment of electrical switches?
A. $92,467.49
B. 92855.19
C. 94264.61
D. $94,406.01
E. 98864.61
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The Answer is: D
Citation: HTS General Statistical Note 1(a)(xiii) & (xiv); 19 CFR 152.102(f) and
152.103(a)(1) and (b)(iii)
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