April 2025 — Question 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 reimported the car into the United States. What statement is correct upon reimportation into the United States?

• AThe sports car may be imported duty-free under subheading 9801.00.10, HTSUS.
• BThe sports car may be imported duty-free under subheading 9802.00.50, HTSUS, because no repairs or alterations were made while in China.
• CThe sports car may be imported duty-free as it did not meet the specifications agreed to in the contract and was returned.
• DThe sports car may be imported duty-free because the car was leased out by the importer.✓ CBP's answer