CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
By applying the average method (1) before the shipment of the 100 units of Material A on 01/10/21, the ratio of units of originating Material A to total units of Material A in materials inventory was 0.50 (1,100 units ÷ 2,200 units) and the ratio of units of non-originating Material A to total units of Material A in materials inventory was 50% (1,100 units ÷ 2,200 units); based on those ratios, 50 units (100 units × 0.50) of originating Material A and 50 units (100 units × 0.50) of non-originating Material A are considered to have been used in the production of the 100 units of Good A shipped on 01/10/21; therefore, the value of non-originating Material A used in the production of those goods is considered to be $52.50 [100 units × $1.05 (average unit value) × 50%]; and the ratios are applied to the units of Material A remaining in materials inventory after the shipment: 1,050 units (2,100 units × 0.50) are considered to be originating materials and 1,050 units (2,100 units × 0.50) are considered to be non-originating materials; (2) before the shipment of the 700 units of Good A on 01/15/21, the ratio of units of originating Material A to total units of Material A in materials inventory was 66% (2,050 units ÷ 3,100 units) and the ratio of units of non-originating Material A to total units of Material A in materials inventory was 34% (1,050 units ÷ 3,100 units); based on those ratios, 462 units (700 units × 0.66) of originating Material A and 238 units (700 units × 0.34) of non-originating Material A are considered to have been used in the production of the 700 units of Good A shipped on 01/15/21; therefore, the value of non-originating Material A used in the production of those goods is considered to be $249.90 [700 units × $1.05 (average unit value) × 34%]; and the ratios are applied to the units of Material A remaining in materials inventory after the shipment: 1,584 units (2,400 units × 0.66) are considered to be originating materials and 816 units (2,400 units × 0.34) are considered to be non-originating materials; (3) before the shipment of the 1,000 units of Material A on 01/20/21, the ratio of units of originating Material A to total units of Material A in materials inventory was 36% (1,584 units ÷ 4,400 units) and the ratio of units of non-originating Material A to total units of Material A in materials inventory was 64% (2,816 units ÷ 4,400 units); based on those ratios, 360 units (1,000 units × 0.36) of originating Material A and 640 units (1,000 units × 0.64) of non-originating Material A are considered to have been used in the production of the 1,000 units of Good A shipped on 01/20/21; therefore, the value of non-originating Material A used in the production of those goods is considered to be $684.80 [1,000 units × $1.07 (average unit value) × 64%]; and those ratios are applied to the units of Material A remaining in materials inventory after the shipment: 1,224 units (3,400 units × 0.36) are considered to be originating materials and 2,176 units (3,400 units × 0.64) are considered to be non-originating materials; and (4) before the shipment of the 900 units of Good A on 01/23/21, the ratio of units of originating Material A to total units of Material A in materials inventory was 36% (1,224 units ÷ 3,400 units) and the ratio of units of non-originating Material A to total units of Material A in materials inventory was 64% (2,176 units ÷ 3,400 units); based on those ratios, 324 units (900 units × 0.36) of originating Material A and 576 units (900 units × 0.64) of non-originating Material A are considered to have been used in the production of the 900 units of Good A shipped on 01/23/21; therefore, the value of non-originating Material A used in the production of those goods is considered to be $616.32 [900 units × $1.07 (average unit value) × 64%]; those ratios are applied to the units of Material A remaining in materials inventory after the shipment: 900 units (2,500 units × 0.36) are considered to be originating