CERTIFIED CUSTOMS SPECIALIST (CCS) Case Study #004 NAFTA Study Material & Quiz

Transcription

1 CERTIFIED CUSTOMS SPECIALIST (CCS) Case Study #004 NAFTA Study Material & Quiz

2 Study Material Per the U.S. Customs and Border Protection website, North American Free Trade Agreement (NAFTA) established a free-trade zone in North America; it was signed in 1992 by Canada, Mexico, and the United States and took effect on Jan. 1, NAFTA immediately lifted tariffs on the majority of goods produced by the signatory nations. It also calls for the gradual elimination, over a period of 15 years, of most remaining barriers to cross-border investment and to the movement of goods and services among the three countries. NAFTA: A Guide to Customs Procedures General Note 12 to the HTSUS (NAFTA) (General Note 12 covers pages 25 to 184 of this document) 01gn.pdf Page 2 of 5

3 1. Which of the following items are considered wholly produced? o Mineral goods extracted in Canada, Mexico, or the United States o Waste and scrap derived from production in Canada, Mexico, or the United States o A product with less than 7% non-north American content o Mineral goods extracted in CA, MX, or the U.S. and waste and scrap derived from production in CA, MX, or the U.S. o All of the above 2. The NAFTA Certificate of Origin is prepared by which of the following? o Freight Forwarder o Importer o Exporter o Customs Broker o Any of the above 3. Which of the following always confers NAFTA origin? o 60% of the value is North American o The tariff number changed from material to finished product (tariff shift) o It was sold to the shipper by a Canadian Company o None of the above 4. In the HTS a tariff subheading is: o Four digits o Two digits o Six digits o Eight digits o Ten digits Page 3 of 5

4 5. The rule of origin for heading 7410 is: o A change to heading 7410 from any other chapter o A change to heading 7410 from any other heading o A change to heading 7410 from any other heading except from heading 7409 o A change to heading 7410 from any other heading with a regional value content o A change to heading 7410 from any other heading except from headings 7405 through Which of the following is correct? o The de minimis for cigars is 7% of the transaction value o The de minimis for apparel is 7% of the transaction value o The de minimis for machinery is 7% of the transaction value o The de minimis for beer is 7% of the net cost value o De minimis never applies to agricultural product 7. Which of the following is correct? o Packing and Packaging are interchangeable terms o The cost of packaging is included in any required RVC calculation o The cost of packing is included in any required RVC calculation o Under the tariff shift method the packaging must also shift 8. A motor that is made in Mexico, of 100% North American products, sent to Colombia for testing and packaging and then to the U.S. is still considered NAFTA originating. 9. Under General Note 12(u) a Zener diode classified in made in Japan will be considered NAFTA originating if imported from Canada. 10. A women s cotton vest, , assembled in Canada from fabric woven in Mexico will always be considered originating. Page 4 of 5

5 11. Blanket Certificates of Origin are good for: o The 12-month period specified on the certificate o The calendar year in which they are signed o 24 months from the date of signing o Any period specified on the certificate o Blanket Certificates of Origin do not expire 12. Importers claiming NAFTA on their shipments must: o Keep records for five years o Provide Customs with a copy of the certificate upon request o Have the certificate in their possession when making the claim o Pay duty on goods that are found after entry to not qualify o All of the above 13. Which of the following is true? o All goods of Mexican origin qualify for NAFTA o U.S. Goods returning from Canada can be entered as NAFTA / origin U.S. o NAFTA goods do not have to be marked with country of origin o Repairs done in Mexico or Canada always qualify for NAFTA o MPF applies to NAFTA importations 14. Retroactive NAFTA claims on goods entered without benefit of NAFTA may be made: o Within one year of the date of importation o Within one year of the date of entry o Within 180 days of the date of liquidation o Before liquidation o Within 180 days of the date of entry 15. In order for Ballasts for discharge lamps ( ) to qualify as originating, when made in Canada, the non-originating components must: o Be classified outside the subheading o Be classified outside the heading 8504 o Be classified in any other subheading except o No change in tariff required o Comprise less than 50% of the net cost RVC Page 5 of 5