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For this problem use the tables and charts shown in this section.

A United States traveler arrives at a United States point of entry. He has purchased a Fiat car abroad that cost him $4,150. Assuming he will use the duty-free exemption, what would be the total cost to the traveler for the Fiat?

Use a thousands comma where applicable.

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Answer:According to the U.S. Customs and Border Protection website, the duty-free exemption for a U.S. resident arriving from a foreign country is $800 for articles acquired abroad, including gifts.

In this case, the traveler purchased a Fiat car abroad that cost $4,150, which is well above the $800 duty-free exemption. Therefore, the traveler would be required to pay duty on the full value of the car.

The amount of duty owed on the car will depend on its classification under the Harmonized Tariff Schedule (HTS), which is a standardized system for classifying goods for trade purposes. The HTS assigns a specific rate of duty for each product category, based on factors such as the country of origin, the value of the product, and any applicable trade agreements or preferences.

Without knowing the specific HTS classification of the Fiat car, it is not possible to calculate the exact amount of duty owed. However, it is safe to assume that the duty owed would be a significant portion of the car's value, potentially several thousand dollars.

Therefore, the total cost to the traveler for the Fiat would be the purchase price of $4,150 plus any applicable duties or taxes.

Explanation:

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