Omni Tool and Die is debating whether to start importing automotive parts from overseas or continue purchasing

Fantastic news! We've Found the answer you've been seeking!

Question:

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 Formula’s 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.