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Although this data is from 1991, it gives a glimpse into the costs of axe production in China.
These costs include the costs of importing axe components into Canada (including freight and brokerage) for a documented example:
3 pound axe head (China) -- $1.46
Handle (USA) -- $2.42 (more than the cost of the axe head)
Wooden Wedge (USA) -- $0.09
Steel Wedge (USA) -- $0.01
Labels (Taiwan) -- $0.07
Packaging (Canada) -- $0.18
Labor (Canada) -- $0.65
Adding these costs gives $4.88
The content from the USA and Canada adds up to $3.35 which is greater than 50%, so this axe can be "treated as goods originating in the territory of Canada and/or the United States".
Information source:
United States International Trade Commision Rulings And Harmonized Tariff Schedule
http://www.faqs.org/rulings/rulings1991NY0862781.html
These costs include the costs of importing axe components into Canada (including freight and brokerage) for a documented example:
3 pound axe head (China) -- $1.46
Handle (USA) -- $2.42 (more than the cost of the axe head)
Wooden Wedge (USA) -- $0.09
Steel Wedge (USA) -- $0.01
Labels (Taiwan) -- $0.07
Packaging (Canada) -- $0.18
Labor (Canada) -- $0.65
Adding these costs gives $4.88
The content from the USA and Canada adds up to $3.35 which is greater than 50%, so this axe can be "treated as goods originating in the territory of Canada and/or the United States".
Information source:
United States International Trade Commision Rulings And Harmonized Tariff Schedule
http://www.faqs.org/rulings/rulings1991NY0862781.html