2010 April No.59 – TRADE AGREEMENTS


59 A woven cotton dress is shipped from Israel directly to the U.S. The cotton fabric for the dress was woven in Pakistan and comprises 64% of the value of the finished garment. A polyester contrasting trim fabric was woven in Puerto Rico and constitutes 5% of the value of the finished garment. The dress was cut and sewn in Israel which constitutes 31% of the value. Which statement is TRUE?

A. The country of origin of the dress is Israel and it qualifies for the United States Israel Free Trade Area (USIFTA).

B. The country of origin of the dress is Israel and the Pakistani fabric disqualifies the woven dress for the USIFTA.

C. The country of origin of the woven dress is Israel and there is insufficient value added to qualify it for USIFTA.

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: HTS General Note 8(b)

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