A U.S. importer sent electronic cigarettes with broken power switches back to China to the original manufacturer for repair. The cigarettes were repaired and returned to the U.S. What is the duty requirement for entering the cigarettes into the U.S.?
A) The importer does not have to pay any duty because it was already paid on the shipment of electronic cigarettes upon the previous importation.
B) The importer does not have to pay any duty because they had a warranty on all parts and labor.
C) The importer must pay duty on the returned shipping charges.
D) The importer must pay duty on the reasonable value of the repairs.
E) The importer must pay the new duty rate assigned to power switches on the appraised value of electronic cigarettes.
[bg_collapse view=”button-green” color=”#4a4949″ icon=”arrow” expand_text=”Show Answer and Citation” collapse_text=”Hide Answer and Citation” ]
The Answer is: D
Citation: Section XXII Chapter 98 U.S. Note 2, Section XXII Chapter 98,
Subchapter II U.S. Note 3, HTS 9802.00.40
[/bg_collapse]