CHAPTER FIVE: OMNI TOOL AND DIE

Omni Tool and Die is debating whether to start importing automotive parts from overseas or continue purchasing from the United States, Chicago, IL (UIL).

Do a comparison using RVC formula to determine the best solution.

Remember that the goods must qualify as originating in order to have preferential duty treatment.

CI is attached.

Selling Price $ 1800.00 and if you use DeMinimis Rule for Auto Parts is 7% of the Selling Price .

Business # 155207156RM0001 . Sale EXW . Drive Line Transport

Canadian Customs Broker: ICS

Prepare a CCI and:

Determine rules of origin to see if goods are originating.

Look up Canada Customs Annex 401 for rules of origin

Your Formulas are below:

TRANSACTION VALUE

RVC = Transaction Value Value of Non-Originating Material

____________________________________________ X 100

Transaction Value

RVC = Net Cost - Value of Non-Originating Material X 100

_____________________________________

Net Cost

DeMinimis Rule: 7% of the Selling Price. If non-originating goods are less than this amount, then goods qualify as originating.

Type in : annex 401, then choose:

North American Free Trade Agreement - Annex 401

Then find the h.s. code in annex 401 and followed what is outlined to calculate RVC.

8708.29Footnote55 A change to subheading 8708.29 from any other heading; or

No required change in tariff classification to subheading 8708.29, provided there is a regional value content of not less than 50 percent under the net cost method.

8708.30Footnote56 A change to mounted brake linings of subheading 8708.30 from any other heading; or

A change to mounted brake linings of subheading 8708.30 from parts of mounted brake linings, brakes or servo-brakes of subheading 8708.30 or 8708.99, whether or not there is also a change from any other heading, provided there is a regional value content of not less than 50 percent under the net cost method;

A change to any other good of subheading 8708.30 from any other heading; or

A change to any other good of subheading 8708.30 from mounted brake linings or parts of brakes or servo-brakes of subheading 8708.30, or 8708.99, whether or not there is also a change from any other heading, provided there is a regional value content of not less than 50 percent under the net cost method.

Type in: annex 401, then choose: North American Free Trade Agreement - Annex 401 Then find the h.s. code in annex 401 and followed what is outlined to calculate RVC. 8708 296 A change to subheading 8708.29 from any other heading; or No required change in tariff classification to subheading 8708.29. provided there is a regional value content of not less than 50 percent under the net cost method. 8708.30 te A change to mounted brake linings of subheading 8708.30 from any other heading; or A change to mounted brake linings of subheading 8708.30 from parts of mounted brake linings, brakes or servo-brakes of subheading 8708.30 or 8708.99, whether or not there is also a change from any other heading provided there is a regional value content of not less than 50 percent under the net cost method: A change to any other good of subheading 8708.30 from any other heading; or A change to any other good of subheading 8708.30 from mounted brake linings or parts of brakes or servo-brakes of subheading 8708.30, or 8708.99, whether or not there is also a change from any other heading, provided there is a regional value content of not less than 50 percent under the net cost method. Pa Page COMMERCIAL INVOICE GO Parts RU 15001 New Drive Chicago, IL 60165 Tax 1.D. 43-1857120 2021/01 Cmeio 1501 Park Dive Win, ON NOPO Ome Tower 6200 Leon Win, ON NOV 106 100 2.0 29000 1000 Adam Brake Pure 101GO Adam Stanong Paris 750.00 or And Door ADCOW 115 1190.00 5 16.25 1413 Parts R Us 15001 New Drive Chicago, IL 60165 Tax L. 12-1857128 Type in: annex 401, then choose: North American Free Trade Agreement - Annex 401 Then find the h.s. code in annex 401 and followed what is outlined to calculate RVC. 8708 296 A change to subheading 8708.29 from any other heading; or No required change in tariff classification to subheading 8708.29. provided there is a regional value content of not less than 50 percent under the net cost method. 8708.30 te A change to mounted brake linings of subheading 8708.30 from any other heading; or A change to mounted brake linings of subheading 8708.30 from parts of mounted brake linings, brakes or servo-brakes of subheading 8708.30 or 8708.99, whether or not there is also a change from any other heading provided there is a regional value content of not less than 50 percent under the net cost method: A change to any other good of subheading 8708.30 from any other heading; or A change to any other good of subheading 8708.30 from mounted brake linings or parts of brakes or servo-brakes of subheading 8708.30, or 8708.99, whether or not there is also a change from any other heading, provided there is a regional value content of not less than 50 percent under the net cost method. Pa Page COMMERCIAL INVOICE GO Parts RU 15001 New Drive Chicago, IL 60165 Tax 1.D. 43-1857120 2021/01 Cmeio 1501 Park Dive Win, ON NOPO Ome Tower 6200 Leon Win, ON NOV 106 100 2.0 29000 1000 Adam Brake Pure 101GO Adam Stanong Paris 750.00 or And Door ADCOW 115 1190.00 5 16.25 1413 Parts R Us 15001 New Drive Chicago, IL 60165 Tax L. 12-1857128