When you were talking on the phone with your friend in Turkey, she told you that she was making leather jackets and intended to export them to Canada. She was wondering if you could help her figure out the customs’ issues related to such exports (import from your perspective).

You asked your friend about the size of her operation, the number of units she intended to bring to Canada. She said something between 10 to 20 leather jackets per week. You asked her if she makes them all in Turkey. She said yes. She uses high-quality leather, produced in Turkey, she cuts the patterns, and then puts them together to make the jackets in her own workshop. She said all the buttons, threads, and the rest also are made in Turkey, even the zippers.

Your friend mentioned that she might need to use other types of fabrics for lining, inserts, and inside of the jackets that might not be made in Turkey a year from now. Less than 25% of the value of her jackets might be made in Germany next year. So, naturally, she is curious to know if that will make any difference in her case.

1. Explain the application of the specific Rules of Origin that apply to her products (i.e. what tariff treatment will apply to her case as the result of her products being made in Turkey? What is the tariff classification for the product? Give the exact 10-digits tariff treatment classification number that applies to this case).
2. How much tariff does she need to pay for her products if any? Why?
3. What if she starts using fabrics made in Germany, so less than 25% of the material value of the jackets will be coming directly from Germany. Will this change anything in her case? Will the rule of origin be different for that percentage of the materials? Explain in details and provide calculations to demonstrate your point (only if the rule of origin changed in this case).
4. Explain to her all the documents and forms she will need to submit to the Canadian customs, i.e. Canada Border Services Agency, to be able to finally release her products into the Canadian market.

Pre-flight checklist

The marking scheme

• Share a digital copy of your final paper with me via Google Docs (use my gmail address)
• Day 5 is the last day for this assignment (there will be a penalty for late submissions)