43. ABC Corp entered Japanese-manufactured construction equipment into the U.S. in March 2011. At the time, all applicable duties, taxes and fees were paid. In 2014, ABC Corp won a contract to construct a U.S. military facility overseas. ABC Corp sent the equipment overseas in January 2015. It is now being returned to the U.S. Which of the following is TRUE?
A. The equipment is not eligible for duty-free entry under Chapter 98 because is it not of U.S. origin.
B. The equipment is not eligible for duty-free entry under Chapter 98 because it was not exported within 3 years of importation.
C. The equipment is not eligible for duty-free entry because it is not returning temporarily for repair, alteration or processing.
D. The equipment is eligible for duty-free entry because it is being returned to the U.S. within 3 years of exportation.
E. The equipment is eligible for duty-free entry because A-Z Corp is a U.S. Government contractor.
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The Answer is: D
Citation: HTSUS 9801.00.10 allows duty-free importation of previously-entered merchandise that is being returned to the U.S. within 3 years of being exported.
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