Foreign materials that do not undergo the required tariff shift when incorporated into a good shall be disregarded in determining the country of origin of the good in which ONE of the following circumstances?
A) Smoked sheets of rubber in primary forms, manufactured in Malaysia and used in the Canadian production of other natural rubber sheets (4001.29), which represents 8% of the value of the natural rubber sheets.
B) Milk, produced in Brazil, which contains 55% by weight of milk solids, and used in the Canadian production of a chocolate based milk drink (2202.90), which represents 8% of the value of the chocolate drink.
C) Greasy shorn wool, not carded or combed, from Peru, and used in the Mexican production of carded or combed wool (5105), which represents 8% of the value of the carded or combed wool.
D) Sugar, produced in Costa Rica and used in the Canadian production of maple syrup (1702.20), which represents 7% of the value of the syrup.
E) Milk, produced in England and used in the Mexican production of condensed milk (0402.99), which represents 6% of the value of the condensed milk.
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The Answer is: B
Citation: 19 CFR 102.13
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