Company A imports a specialized mold from Italy for use in production of goods in the United States. The mold is valued at $2,000.00. Five years after importation, Company A sells the mold to Company B. Company B exports the mold to a company in Canada for use in production of goods in Canada. The Canadian company pays Company B a rental fee for use of the mold. The lease of the mold is limited to no more than 3 years. The Canadian company uses the mold for 2.5 years and then ships the mold back to Company B in the United States. While in Canada, the mold is simply used to produce goods and is not changed in any way. The mold is returned to the United States in the same condition in which it was exported. Select the CORRECT answer below.
A. The mold is fully dutiable upon importation into the United States from Canada.
B. The mold is eligible for duty-free entry under subheading 9801.00.10, HTSUS.
C. The mold is dutiable based upon its original $2000.00 value.
D. The mold is dutiable based upon its original value less depreciation.
E. The mold is eligible for duty-free entry under subheading 9801.00.20, HTSUS.
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The Answer is: B
Citation: HTSUS sub headings 9801.00.10 & 9801.00.20
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