2007 October No.49 – TRADE AGREEMENTS


49 Which statement is TRUE regarding this shipment of sweaters?  Wool yarn is formed in Australia  Nylon filament yarn is formed in Korea, which is subsequently forwarded to Australia  The components are knit to shape and linked and looped in Australia to form a 90% wool, 10% nylon sweater  The finished product, the sweaters, are shipped directly to the United States from Australia

A. The country of origin is Korea

B. The Korean nylon filament is less than the de minimis allowable for foreign fiber of yarn

C. The wool sweaters do not qualify for the United States-Australian Free Trade Agreement

D. The wool sweaters qualify for the United States-Australian Free Trade Agreement

E. The wool sweaters qualify for Generalized System of Preferences

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The Answer is: Which statement is TRUE regarding this shipment of sweaters?  Wool yarn is formed in Australia  Nylon filament yarn is formed in Korea, which is subsequently forwarded to Australia  The components are knit to shape and linked and looped in Australia to form a 90% wool, 10% nylon sweater  The finished product, the sweaters, are shipped directly to the United States from Australia

Citation: C

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