Answer :
Final answer:
A battery charger classified under 8504. 40. 95 would not be subject to theUSMCA automotive content rules, whereas parts classified under 8708. 29. 15 and 8409. 99. 91 would be. So the correct option is c. A battery charger classified under 8504. 40. 95.
Explanation:
The USMCA (United States-Mexico-Canada Agreement) contains special content rules that apply to the automotive sector. These rules mandate that a certain percentage of a vehicle's or part's value must originate within the three signatory countries to qualify for tariff-free treatment. Specifically, the agreement sets the regional value content (RVC) requirements to be 75% for most vehicles and in the range of 65% to 75% for vehicle parts by the year 2023. This is an increase from the previous requirement under NAFTA, which was 62.5% RVC for vehicles.
When examining the options provided in the question:
- A part classified under 8708. 29. 15 falls into the automotive parts category under the Harmonized Tariff Schedule (HTS) and would be subject to the content rules.
- Similarly, a part classified under 8409. 99. 91 would be subject to the content rules as it is related to internal combustion engines for vehicles.
However, a battery charger, classified under 8504. 40. 95, does not directly fall under the automotive goods category and therefore would not be subject to the automotive content rules of the USMCA.