May 2024 — Question 76

A shipment of portable gas stoves manufactured in Sweden are imported into the United States. The appraised value of each stove upon importation is $600.00. They are classified under 7321.11.1030 with a duty rate of 5.7 percent. The importer discovers that 15 of the stoves have a faulty gas valve. The stoves are exported to Canada for warranty repair. Upon reimportation from Canada, there is no charge to the importer, but the value of the repair is $120.00 each. The reimportation is under 9802.00.40 in the Harmonized Tariff Schedule of the United States. Which statement accurately reflects the dutiable value and duty rate upon reimportation?

• AThe dutiable value is $1,800.00, and the duty rate is "Free" with a claim of "S" as the goods were repaired in Canada and the United States-Mexico-Canada Agreement applies to repairs of goods originating outside of the United States, Mexico, or Canada.✓ CBP's answer
• BThe dutiable value is $1,800.00, and the duty rate is 5.7%, the rate of duty on the article itself, as goods originating outside of the United States, Canada, or Mexico are not eligible for duty free treatment under the United States-Mexico-Canada Agreement.
• CThe dutiable value is $0.00 because the importer was not charged for the repair, and the rate of duty is not relevant since any rate of duty multiplied by a dutiable value of $0.00 will be $0.00 owed.
• DThe dutiable value is $0.00 because the importer was not charged for the warranty repair, and the duty rate is 5.7 percent because it is the duty rate that applies to the article itself.