2014 October No.56 – Free Trade Agreements


Based on the following cost breakdown, a table made in and exported from Poland with the inputs and processing listed below, and invoiced at $16.50, is ineligible for preferential treatment under the Generalized System of Preferences because _____. $6.00 Wood from Germany $4.25 Glass from Russia $3.35 Paint from Poland $2.90 Labor in Poland

A. the direct cost of processing operations in Poland is less than 35 percent.

B. Russia is NOT a designated beneficiary developing country.

C. the product was NOT directly exported from Germany.

D. Poland is NOT a designated beneficiary developing country.

E. labor CANNOT be included in the direct processing costs.

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The Answer is: D

Citation: HTS General Note 4(a)

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