CBLE Country of Origin Determination 2 — Questions and Answers
Question 1: What is the purpose of the 'country of origin' marking requirement under Section 304 of the Tariff Act of 1930?
- To inform the ultimate purchaser in the U.S. of the article's origin (Correct answer)
- To facilitate statistical tracking by the Census Bureau
- To allow CBP to apply anti-dumping duties
- To satisfy World Trade Organization reporting obligations
Correct answer: To inform the ultimate purchaser in the U.S. of the article's origin
Section 304 requires country of origin marking so that the ultimate purchaser in the United States is informed of the country in which the article was manufactured or produced.
Question 2: Under 19 CFR Part 134, which party is generally responsible for ensuring that imported goods are properly marked with their country of origin?
- The importer of record (Correct answer)
- The foreign manufacturer
- The licensed customs broker
- The freight forwarder
Correct answer: The importer of record
The importer of record bears primary legal responsibility under 19 CFR Part 134 for ensuring that imported articles are properly marked with the country of origin.
Question 3: Under USMCA, what is 'Regional Value Content' (RVC) used to determine?
- The percentage of a product's value attributable to North American production (Correct answer)
- The total customs value declared on the entry
- The proportion of duties owed to each USMCA country
- The weight ratio of domestic to foreign components
Correct answer: The percentage of a product's value attributable to North American production
RVC measures the percentage of a product's value that originates within the USMCA region (U.S., Canada, Mexico) to determine whether the good qualifies as originating.
Question 4: If goods are found to be improperly marked upon importation, CBP may require the importer to do which of the following before the goods are released?
- Remark the goods under CBP supervision or re-export them (Correct answer)
- Pay an additional ad valorem duty equal to 25%
- File a supplemental entry correcting the origin
- Obtain a retroactive ruling from CBP headquarters
Correct answer: Remark the goods under CBP supervision or re-export them
CBP may require that improperly marked goods be properly marked or re-exported before they are released; otherwise, a marking duty of 10% ad valorem may be assessed.
Question 5: The 'de minimis' rule under USMCA allows non-originating materials to be disregarded for origin purposes if they do not exceed what percentage of the adjusted value of the good?
- 10% (Correct answer)
- 7%
- 15%
- 20%
Correct answer: 10%
Under USMCA, non-originating materials that do not exceed 10% of the adjusted value of the good generally may be disregarded under the de minimis rule for most products.
Question 6: Which U.S. government agency has primary authority to administer and enforce country of origin marking requirements for imported goods?
- U.S. Customs and Border Protection (CBP) (Correct answer)
- U.S. International Trade Commission (USITC)
- Bureau of Industry and Security (BIS)
- Office of the U.S. Trade Representative (USTR)
Correct answer: U.S. Customs and Border Protection (CBP)
CBP is the primary agency responsible for administering and enforcing country of origin marking requirements at the border under the Tariff Act.
Question 7: For purposes of country of origin marking, who is considered the 'ultimate purchaser' of an imported article?
- The last U.S. person who will receive the article in the form in which it was imported (Correct answer)
- The foreign exporter who sold the goods
- The customs broker who filed the entry
- The wholesale distributor who first receives the goods
Correct answer: The last U.S. person who will receive the article in the form in which it was imported
The ultimate purchaser is defined as the last U.S. person who will receive the article in the same form it was imported, and the marking must be sufficient to inform that person of the origin.
CBLE Country of Origin Determination 2
What is the purpose of the 'country of origin' marking requirement under Section 304 of the Tariff Act of 1930?