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Question Completion Status: HTS Marketing Scenario C. Your company has just completed an audit and concluded the firm can no longer manufacture its blender in

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Question Completion Status: HTS Marketing Scenario C. Your company has just completed an audit and concluded the firm can no longer manufacture its blender in Milwaukee, Wisconsin. The cost of labor and taxes are simply too high. As the new hire (from The Border), you have been assigned to investigate Mexico and to determine whether it makes economic sense to manufacture in Cd. Juarez. You have been provided with the following information for your analysis and recommendation to the product management group at your firm. You are instructed to Identify the lowest tariff available from a qualified program!! Tariff Programs Sourcing of Material Materials USMCA Content Value Unit NAFTA GSP Total S120.00 US 45.00 S. Korea 14.00 Chile 2.50 Mexico 12.00 Canada 5.50 Other Value Mexico Labor 35.00 Transport Profi 1. Import Tariff Unit Other Information: Both the Mexican and US MFN Tariff Rates are 10.0%. Other U.S. import duties (If qualified) include: HTS 9802 (10%), USMCA/NAFTA (0%) and GSP (0%). RULES OF ORIGIN: MFN (Good Relations, US), HTS 9802 (MFN Rate applies to NON-US Value only; USMCANAFTA (North American Content Value must be a Mexico Labor Transport Profit* 35.00 5.00 1.00 Import Tariff/Unit Other Information: Both the Mexican and US MFN Tarif Rates are 10.0%. Other U.S. import duties (If qualified) include: HTS 9802 (10%), USMCA/NAFTA (0%) and GSP (096). RULES OF ORIGIN: MFN (Good Relations, US), HTS 9802 ( MFN Rate applies to NON-US Value only; USMCANAFTA (North American Content Value must be a minimum 88.096); GSP (35% minimum country of Manufacture Value Added.)BE CAREFUL IN APPLYING THESE TARIFF PROGRAMS. MAKE CERTAIN YOU UNDERSTAND THEIR REQUIREMENTS.) (10 Pts) Your recommendation to the Product Management Group (The Lowest qualified tariff program available per unit, if manufactured in Cd. Juarez) is: O USMCA/NAFTA, Zero Duty Rate OMFN, Duty ($12.00) GSP, Zero Duty Rate HTS 9802, Duty (57.50) Blender's values do not qualify, it cannot be manufactured in Mexico

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