If the costs of complying with a country's rules of origin are higher than the cost of the tariff then the importer is better off just paying the tariff.

Question

Quizplus · Accepted Answer

If the costs associated with complying with a country's rules of origin exceed the cost of the tariff, it is more economical for the importer to pay the tariff rather than incur higher expenses to meet the rules of origin requirements.

If the Costs of Complying with a Country's Rules of Origin