It also seems very odd that anytime your AD sends a watch to HSWA it's going to cost them $4,000...;-) I probably wouldn't be happy to spend that amount (or even the $550) for an issue that doesn't seem to be your fault, but keep in mind that driving up to NY and carrying the watch also has some associated risks, on top of the waste of time. Let's say that I don't think your AD is behaving in a smart way, so you may at least want to ask them to reconsider before spending any money on this...;-)