A woven cotton dress is shipped from Israel directly to the United States as a finished product. The cotton fabric for the dress was woven in Pakistan and comprises 64% of the value of the finished garment. The polyester contrast trim fabric was woven in Puerto Rico and constitutes 5% of the value of the finished garment. The labor to cut and sew the dress in Israel constitutes 31% of the value. The dress is imported directly from Israel to the United States. Which of the following is true?
A. The country of origin of the dress is Israel and it qualifies for the United States Israel Free Trade Area Agreement (ILFTA).
B. The country of origin of the dress is Israel and the Pakistani fabric disqualifies the woven dress for the United States Israel Free Trade Area Agreement (ILFTA).
C. The country of origin of the woven dress is Israel and there is insufficient value added to qualify it for the United States Israel Free Trade Area Agreement (ILFTA).
D. The country of origin of the woven cotton dress is the United States of America.
E. The finished garment is classified in Chapter 61 of the Harmonized Tariff Schedule of the United States of America.
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The Answer is: A
Citation: HTSUS General Note (GN) 8(b) & 3(a) and (v)
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