Question: Based on below information calculate for a final Good under 9007.91 Net Cost Transaction Value Value of Non- Originating Materials RVC under TV method -

Based on below information calculate for a final Good under 9007.91

  1. Net Cost
  2. Transaction Value
  3. Value of Non- Originating Materials
  4. RVC under TV method - Will it pass the 60% rule to qualify for CUSMA
  5. RVC under NC method - Will it pass the 50% rule to qualify for CUSMA
  6. Could the final good qualify only by using option 1 of Rule of Origin

9007.91 A change to subheading 9007.91 from any other heading; or

No required change in tariff classification to subheading 9007.91, provided there is a regional value content of not less than:

  • (a) 60 percent where the transaction value method is used; or
  • (b) 50 percent where the net cost method is used.

Origin Value
Material 1 HS 7702.00 USA (No CUSMA $45
Certificate provided)
Material 2 HS 7801.00 China $36
Material 3 HS. 3907.10 India $19
Material 4 HS.3903.00 Italy $56
Overhead, labor $10
Profit $5

Origin

Value

Material 1 HS 8902.00

Mexico (CUSMA

certificate)

$ 65

Material 2 HS 7301.00

Bangladesh

$ 45

Material 3 HS. 3907.10

Dominican Republic

$ 15

Material 4 HS.4401.00

Panama

$5

Overhead, labor

$122

Profit

$19

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