ITunes preferences general import settings mp3encoder not working

I have searched looking to import a CD as an mp3 so that I can store it on an external harddrive.  I have set iTunes to import as mp3 encoder, but when I allow iTunes to import CD to library or click no, either way, the file shows up as an AIFF-C kind on Finder.  I can convert to mp3 in iTunes device>copy, but then it won't paste onto external harddrive.  Can someone help me get a store bought CD onto an external harddrive as an mp3?  But the preferences setting doesn't seem to take.  I ensure that I click "ok" twice.  Thank you.

The import setting have no effect on store downloads, all iTunes store downloads are AAC (MP4). The import settings are used to convert the songs imported from CD or to convert unprotected songs in iTunes, not for choosing a format to download song from the store.
You can't convert standard iTunes copy protected songs, only the iTunes Plus purchases can be directly converted to another format. Where possible if you need to convert you should go for iTunes Plus tracks. The only thing you can do with standard songs apart from playing them in iTunes or on an iPod/iPhone is burn them to Audio CD. You can use that CD just like any regular one. If you need songs that will play on a non Apple player you'd be better looking around for other stores that provide unprotected MP3 downloads.

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