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Janie Took a Vacation to Italy and Bought $1,000 Worth

Question 27

Multiple Choice

Janie took a vacation to Italy and bought $1,000 worth of jewelry in Florence. The United States will allow Janie to bring $800 back into the country duty free. What happens to the other $200 that is part of her total expenditure?


A) Janie does not have to account for the extra $200; the U.S. government will pay a duty tax on it.
B) Janie cannot bring home more than $800 worth of goods, so she must return $200 worth of merchandise.
C) Janie must pay an ad valorem tariff on the extra $200.
D) Janie must pay a fixed tariff on the extra $200.
E) Janie must claim the $200 as an export tariff.

Correct Answer:

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