What is the amount of the IRS Excise Tax on 72,000 small cigarettes with the following characteristics? x Do not exceed 3 pounds per 1,000 cigarettes x The entered value is $828.00 and x The net tobacco weight is 77 kg with x The tariff classification is 2402.20.8000?
A) 80.85
B) 90.89
C) 2533.89
D) 3623.76
E) 3704.61
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The Answer is: D
Citation: According to Appendix B “Valid Codes” of the CATAIR at “Tobacco Products” the tax code code 018 (Tobacco Products) identifies the equivalent metric HTS rate tax of $50.33 per metric HTS unit of measure. The equivalent rate of measure is K which is 1,000. See Appendix C “Tariff Abbreviations”. The provided tariff classification narrative identifies small cigarettes. See Appendix B “Valid Codes”.
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