Smith intends to import granite blocks from South Africa into Canada where they will be unloaded and stored in a Canadian Customs bonded warehouse pending sale to a Canadian or a U.S. customer. Smith is the South African producer’s sales agent. The original bill of lading and other documents accompanying the shipment do NOT show the U.S. as the final destination. Those granite blocks that are sold to a U.S. customer at wholesale while in the bonded warehouse are then loaded onto a truck and transported inbond through Canada to the U.S. Assuming the granite blocks are classifiable under a GSP-eligible provision and satisfy the GSP “product of” 5 and 35% value-content requirements for receiving duty-free treatment, the blocks will/or will not satisfy the “imported directly” requirement because ____________.
A) will; they remained under the control of Canadian Customs, did not enter into the commerce of Canada, and were not subjected to operations other than loading or unloading.
B) will not; the entry documents do not show the U.S. as the final destination.
C) will; Canada is a GSP beneficiary developing country.
D) will not; they were sold while they were in the Canadian bonded warehouse.
E) will not; the transportation of the granite blocks to the U.S. via truck will cause the granite to enter into the commerce of Canada.
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The Answer is: A
Citation: 19 CFR 10.175 (d)
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