24. Boots -4-U ordered 1,000 pairs of men’s motorcycle boots predominantly of leather in three styles as follows. Boot Style Per-pair Cost Quantity Total Black upper and black sole $100.00 500 $50,000.00 Black upper and black sole with chains at ankle $125.00 350 $43,750.00 Brown upper and black sole $150.00 150 $22,500.00 Total $116,250.00 On April 23, 2024, Boots -4-U correctly filed a formal consumption entry with all the boots on one entry summary line. Boots -4-U utilized subheading 6403.91.6075, HTSUS, for all 1,000 pairs of boots. Boots -4-U’s merchandise was exempt from the merchandise processing fee pursuant to 19 CFR 24.23(c)(1)(iii), but did not meet the duty -free requirements. Therefore, duties were correctly calculated and pa id, with a total duty cost of $9,881.25. No other fees were due. Boots -4-U then exported 100 pairs of the black upper and black sole boots and 100 pairs of the black upper and black sole with chains at the ankle boots. Boots – 4-U filed the first drawback claim properly calculating drawback using the per unit averaging accounting method pursuant to 19 CFR 190.14(c)(4)(i). In a domestic transaction, Boots -4-U sold all 150 units of the brown upper and black sole boots to Discount Boot House (Discount) for $135.00 per pair and transferred drawback rights for that merchandise to Discount. After the sale, Discount timely export s all boots it bought from Boots -4-U and files a drawback claim as the transferee. Which statement below is accurate regarding the per unit drawback that Discount can claim on the brown upper and black sole boots? (2024 October No.24 – Modernized Drawback)
A) Discount can claim the per unit drawback amount calculated using the per unit
B) Discount can claim 99% of the duty apportioned to the per unit cost by Boots -4-U of
C) Discount can claim 99% of the duty apportioned to the per unit cost paid to Boots -4-
D) Discount can claim 99% of 15% of the total duty paid by Boots -4-U as Discount is
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The Answer is: A
Citation: 19 CFR 190.10(c); 19 CFR 190.2
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