74. Company A, based in the United States, sells and rents high end sports cars. In 2015, Company A imported an Italian sports car from Italy and paid all applicable duties and taxes. In 2020, Company A leased the car to a client in China and exported it to him. The car did not meet the specifications agreed upon in the contract; however, the client continued to drive it for the remainder of the lease. The sports car was not subjected to any repairs or alterations while in China. In 2024, Company A then re imported the car into the United States. What statement is correct upon reimportation into the United States? (2025 April No.74 – Valuation, Appraisement and Duty Assessment)
A) The sports car may be imported duty- free under subheading 9801.00.10, HTSUS.
B) The sports car may be imported duty- free under subheading 9802.00.50, HTSUS,
C) The sports car may be imported duty- free as it did not meet the specifications
D) The sports car may be imported duty- free because the car was leased out by the
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The Answer is: D
Citation: HTSUS 9801.00.20; 9801.00.25; 9802.00.50; 19 CFR 10.108
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