USMCA is a free trade area (originally called the NAFTA) consisting of the United States, Canada and Mexico. Via three-party agreements, goods imported from one USMCA country will be imposed zero duty by another USMCA country. Consider Apex Home Appliances Co., a company imports sewing machines from China for sale throughout North America.

1. Should Apex set up three separate importing operations, one in each of the USMCA countries, or should the company establish one import point in Long Beach, California from which it can fill orders anywhere in the USMCA region? Why?

2. Assume Apex set up one import point and an U.S. subsidiary in Long Beach, California. During the U.S.-China trade war, in an attempt to avoid the high tariff imposed by the U.S. authorities on goods imported from China, Apex was told by its "trade consultants" to process its products further in Indonesia and obtain its "made in Indonesia" certificate before importing into the U.S.. What is the name of this practice? For the sewing machines to be considered "made in Indonesia", what are some additional steps Apex need to complete in Indonesia to avoid U.S. customs investigation?