Assignment Problem 1: You are assessing an international transaction and you have the following information:
- A US exporter/manufacturer is selling Televisions to a Canadian Importer
- The television is comprised of parts from North America as well as foreign materials from Japan and China
- The Television's Transaction Value is $4,000
- The value of the North American materials = $2,500
- The value of all other Materials from Japan/China = $1,500
Question: Based on the Transaction Value rule discussed in class, is this Television considered CUSMA - originating? Why or why not? Show your work.
Assignment Problem 2: Assume the same scenario with new evidence of the cost structure:
- The Televisions Transaction Value is $4,000 but it costs $3,000 to produce.
- From that $3,000 cost, $500 is spent on shipping and packaging, $1,000 is just for US labor, and the materials from Japan and China total $1,500
Question: Based on the Net Cost method discussed in class, is this Television considered CUSMA - originating? Why or why not? Show your work