CCS Trade Agreements and Programs 2 — Questions and Answers
Question 1: Under USMCA, what is the minimum Regional Value Content (RVC) required for most automotive parts using the Net Cost method?
- 55%
- 65% (Correct answer)
- 75%
- 45%
Correct answer: 65%
USMCA requires a minimum of 65% RVC for most automotive parts when using the Net Cost method, phasing up to 75% by 2023.
Question 2: Which of the following countries is NOT a member of CAFTA-DR?
- Guatemala
- Panama (Correct answer)
- Honduras
- El Salvador
Correct answer: Panama
Panama is not part of CAFTA-DR; the agreement covers Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua.
Question 3: The US-Korea Free Trade Agreement (KORUS) was implemented in which year?
- 2009
- 2012 (Correct answer)
- 2015
- 2007
Correct answer: 2012
KORUS entered into force on March 15, 2012, making it one of the largest US FTAs by trade volume at the time.
Question 4: Under the US-Australia FTA, importers claiming preferential tariff treatment must:
- Submit a government-issued certificate of origin
- Maintain records supporting the claim but no formal certificate is required (Correct answer)
- Obtain prior approval from CBP before each shipment
- File a binding ruling before claiming preference
Correct answer: Maintain records supporting the claim but no formal certificate is required
The US-Australia FTA uses an importer-based system where no formal certificate is required, but importers must maintain supporting documentation for 5 years.
Question 5: Under the US-Colombia FTA, which document can serve as a certification of origin?
- Only a government-issued certificate from DIAN
- A certification by the exporter, producer, or importer on any document (Correct answer)
- Only CBP Form 434
- A notarized declaration by the Colombian Chamber of Commerce
Correct answer: A certification by the exporter, producer, or importer on any document
The US-Colombia FTA allows the exporter, producer, or importer to certify origin on any document, including a commercial invoice, with required data elements.
Question 6: Under the US-Chile FTA, goods that have undergone a tariff classification change qualify under which rule of origin method?
- Regional Value Content (RVC)
- Tariff Shift Rule (Correct answer)
- Specific Manufacturing Rule
- Wholly Obtained Rule
Correct answer: Tariff Shift Rule
The Tariff Shift Rule (also called change in tariff classification) requires that non-originating materials undergo a specified change in HTS heading or subheading during production.
Question 7: Which US FTA partner is the only one that requires goods to be 'wholly obtained' with no tariff shift or RVC alternative for agricultural products?
- Australia
- Singapore
- Jordan (Correct answer)
- Bahrain
Correct answer: Jordan
The US-Jordan FTA contains unique provisions for agricultural goods requiring wholly obtained status, reflecting the agreement's historical and political context.
CCS Trade Agreements and Programs 2
Under USMCA, what is the minimum Regional Value Content (RVC) required for most automotive parts using the Net Cost method?