A pair of shoes are manufactured in Mexico using component parts (e.g., eyelets, soles, heels) made in non-NAFTA countries and exported to Mexico. The Mexican manufacturer completes the manufacturing process. It then attempts to export the completed shoes to the US buyer at favorable NAFTA preference rates. The transactional value test used is the computation for Regional Value Content (RVC) at the US-Mexico border. The Transaction Value is $100. The value of non-originating material (VNM) is $45.00 (VNM.) Are these shoes entitled to preferred treatment under NAFTA? a. Yes. Using formula above the RVC of 55% meets the "51% or more rule" for determining country of origin. b. Yes, as items like shoes are treated separately and not under regular rules of origin. c. No. Eyelets and heels are the "most complex" manufacturing phase and that complexity determine country of origin status, not mere final cost or value of item. d. No. Computation is: $100 (TV) - $ 45 (VNM) = $55. This is 55% of TV. This falls below the general rule that of RVC must be at least 60% of value of the item to receive NAFTA rate