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All NAFTA countries impose a 1.5% tariff on shoes manufactured within their free trade area. Tariffs on Italian shoes exported into US must be at
All NAFTA countries impose a 1.5% tariff on shoes manufactured within their free trade area. Tariffs on Italian shoes exported into US must be at a 7.5% tariff. Reggios Shoes in Rome makes shoes and ships them to Mexico at a 1.0% tariff rate. They are "slightly altered" in Mexico by adding a few changes to the heel and then exported into US at lower tariff rate as "Mexican shoes." This is a common-occurring example of: a. Circumvention. b. Harmonization. c. Privatization. d. Negative determination
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