Wired Up Inc. imports electrical conductors from Mexico. The manufacturer, Wired Up de Mexico is related to Wired Up Inc. and the relationship influences the sales price. The production process uses copper wire from Japan. All other material used is of U.S. origin. The net cost of the electrical conductors is $56.00 per unit. In order for the electrical conductors to qualify for NAFTA preferential duty treatment under Criterion B (General Note 12 (b)(ii)), the value of the copper wire used per electrical conductor must NOT be greater than __________. Which ONE of the following choices correctly fills in the blank?
A) 33.6
B) 22.4
C) 28
D) 56
E) The value of the copper wire is irrelevant because the copper wire makes the necessary tariff shift.
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The Answer is: C.
Citation: 19CFR181, App Part II Sec 4 (2)(b), Part III Sec 6 (3), (6) (b), Sch III Sec 1 (2)(d) & GN 12
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