CBLE Trade Agreements and Free Trade Programs Flashcards

Which Special Program Indicator (SPI) is used on CBP Form 7501 to claim USMCA preference?

Answer: A

The SPI 'S' is used for USMCA (formerly NAFTA used 'CA' and 'MX'), but current CBP guidance designates 'S' for USMCA Canada and 'S+' for USMCA Mexico — check current CBP notices for updates.

Under the Caribbean Basin Initiative (CBI), which country is specifically EXCLUDED from benefits?

Answer: Cuba

Cuba is specifically excluded from Caribbean Basin Initiative benefits due to U.S. trade restrictions and embargo policies.

What does the 'wholly obtained' criterion mean in FTA origin rules?

Answer: The good was manufactured entirely in one FTA country with no foreign inputs

The 'wholly obtained' criterion means the good was entirely grown, extracted, or manufactured in the FTA territory with no foreign materials.

An importer claims GSP duty-free treatment but CBP later determines the goods do not qualify. What is the likely consequence?

Answer: Payment of the otherwise applicable duties plus possible penalties

If a GSP claim is found invalid, the importer must pay the full duties that would have applied, and false claims can also result in penalties under 19 U.S.C. § 1592.

What is the 'direct shipment' or 'transit' requirement commonly found in FTA rules of origin?

Answer: Goods must ship directly without entering the commerce of a non-FTA country

Most FTAs require that qualifying goods be shipped directly from the FTA country or, if transiting a third country, not enter into the commerce of that country.

Under AGOA, what additional benefit do lesser-developed beneficiary countries (LDBCs) receive for apparel?

Answer: Third-country fabric provision allowing apparel made from non-regional fabric to qualify

LDBCs under AGOA's third-country fabric provision can export duty-free apparel to the U.S. regardless of where the fabric originated, up to an annual cap.