Question
We Like Sweaters, Arts, and Sweets, also known as WLSAS, recently purchased many products. First, they purchased sweaters from a factory in China. The manufacturing
"We Like Sweaters, Arts, and Sweets," also known as "WLSAS," recently purchased many products. First, they purchased sweaters from a factory in China. The manufacturing processes were as follows: the knit-to-shape sweater panels (approximately 70 percent of the exterior surface area) were knit to the shape in Singapore; the goods were transported to China for assembly of the major components; the goods were transported to Vietnam for embroidery work, applications of front pockets, quality control, trimming, finishing, and packaging; the completed sweaters were exported from Vietnam, destined for the United States.
In addition to sweaters, WLSAS also purchased 1000 pounds of sweet corn, 500 pounds were from Germany at $1 per pound, and 500 pounds were from Mexico at $0.5 per pound.
Finally, WLSAS also purchased 100 framed lithographs. The lithographs were purchased from a seller in Singapore called L-Heaven. The terms of this transaction were as follows:
- The invoice value was $10,000.
- The value of frames is $500, and WLSAS provided all frames to L-Heaven.
- CIF Charleston, SC - duty paid, MPF included.
- Price includes international freight of $1,000, and $500 marine insurance.
- The deal also involved a buying commission of $500 that WLSAS paid to an agent to assist him with the deal.
- Duty rate is 10%
- MPF rate was 0.3464%
1. Which country is the correct country of origin for the knit-to-shape sweaters? Please explain.
2. In terms of duty paid to the U.S. Government, how much will WLSAS have to pay for all the sweet corn imported from abroad?
3. What is the correct transaction value (entered value) for the imported lithographs?
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