CBLE CBLE Trade Agreements and Free Trade Programs 2 — Questions and Answers
Question 1: What CBP form is used to claim preferential duty treatment under a free trade agreement at time of entry?
- CF-28
- CF-29
- CF-7501 with appropriate indicator (Correct answer)
- CF-3461
Correct answer: CF-7501 with appropriate indicator
The importer claims FTA preferential treatment on CBP Form 7501 by entering the appropriate Special Program Indicator (SPI) in the rate column.
Question 2: Under the U.S.-Korea Free Trade Agreement (KORUS), which document can be used as a certification of origin?
- Only a government-issued certificate
- A certification by the exporter, producer, or importer (Correct answer)
- Only CBP Form 434
- Only Form A
Correct answer: A certification by the exporter, producer, or importer
KORUS allows a certification of origin to be prepared by the exporter, producer, or importer — no specific government-issued form is required.
Question 3: What is the standard record retention period for FTA preference claims under U.S. law?
- 3 years
- 5 years (Correct answer)
- 7 years
- 10 years
Correct answer: 5 years
Importers must retain records supporting FTA preference claims for five years from the date of entry under 19 CFR Part 163.
Question 4: Which program provides duty preferences for eligible goods from sub-Saharan African countries?
- CBI
- AGOA (Correct answer)
- GSP
- ATPA
Correct answer: AGOA
The African Growth and Opportunity Act (AGOA) provides eligible sub-Saharan African countries with duty-free access to the U.S. market.
Question 5: Under USMCA, what is the regional value content (RVC) threshold for passenger vehicles to qualify as originating?
- 55%
- 62.5%
- 75% (Correct answer)
- 45%
Correct answer: 75%
Under USMCA, passenger vehicles must meet a 75% regional value content threshold (phased in) to qualify as originating.
Question 6: What is a 'tariff preference level' (TPL) in the context of free trade agreements?
- A maximum tariff rate applied to FTA goods
- A quota allowing a limited quantity of goods to receive preferential rates (Correct answer)
- A penalty for misusing FTA claims
- A list of excluded goods under an FTA
Correct answer: A quota allowing a limited quantity of goods to receive preferential rates
A tariff preference level (TPL) is a quota that allows a specified quantity of goods that do not fully meet origin rules to still receive preferential tariff treatment.
CBLE CBLE Trade Agreements and Free Trade Programs 2
What CBP form is used to claim preferential duty treatment under a free trade agreement at time of entry?