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.

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 labour, 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