61. Which statement is TRUE regarding the NAFTA eligibility of a shipment of men’s western boots entered under 6403.51.3030? The boots are made in Mexico. The only foreign material is tanned ostrich leather skins imported from South Africa costing $12.69/pr. The originating materials have a total cost of $14.14/pr. Craftsman labor costs are $1.11/pr. Factory overhead costs are $0.40/pr. The F.O.B. invoice value is $69.00/pr.
A. Boots qualify for NAFTA, meets tariff shift and has a RVC under the Transaction Value Method of 81.61%
B. Boots qualify for NAFTA, meets tariff shift and has a RVC under the Net Cost Method of 55.22%
C. Boots do not qualify for NAFTA and the tariff shift requirement is not met.
D. Boots do not qualify for NAFTA and although the boots meet the tariff shift, the RVC under the Net Cost Method is 52.7%
E. Boots do not qualify for NAFTA and although the boots meet the tariff shift, the RVC under the Build Up Method is 49.89%.
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The Answer is: B
Citation: HTS General Note 12(c) and (t)
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