Question
Lovedeep owns a small fashion business in Vancouver, B.C., Canada. However, her business recently started to get some international attention when a popular movie actress
Lovedeep owns a small fashion business in Vancouver, B.C., Canada. However, her business recently started to get some international attention when a popular movie actress was seen wearing a dress Lovedeep designed. Thanks to that attention, she now sells her dresses in both Vancouver and Los Angeles, California, USA ("L.A."). a) Lovedeep imports organic linen fabric from India. She cuts and sews the fabric into her own original dresses. When she sells her dresses in L.A., are they subject to the USMCA? Why or why not? (2)
b) When Lovedeep sends a shipment of dresses from Vancouver to L.A., what trade law documentation does she always include and provide 4 reasons as why this is so important. (5)
c) Another designer admired Lovedeep's linen fabric and wanted to purchase some for his own designs. Lovedeep agreed to import it from India and store it in her Vancouver warehouse until the L.A. designer was next in Vancouver. She stored the fabric for 6 weeks, then the L.A. designer arrived, paid for the fabric and shipped it to L.A. When the fabric entered the U.S.A., was it subject to the USMCA? Why or why not? (2)
d) Lovedeep's latest designs included silk from Canada, linen from India and zippers from Mexico. She created them in Vancouver and sold them in Toronto (city in Ontario, Canada) and Mexico City, Mexico. Why or why weren't the dresses subject to the USMCA when they arrived in: i. Toronto? (1) ii. Mexico City? (1)
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