Trade Agreements and Programs Flashcards

Under USMCA, what is the minimum Regional Value Content (RVC) required for most automotive parts using the Net Cost method?

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.

Which of the following countries is NOT a member of CAFTA-DR?

Answer: Panama

Panama is not part of CAFTA-DR; the agreement covers Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua.

The US-Korea Free Trade Agreement (KORUS) was implemented in which year?

Answer: 2012

KORUS entered into force on March 15, 2012, making it one of the largest US FTAs by trade volume at the time.

Under the US-Australia FTA, importers claiming preferential tariff treatment must:

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.

Under the US-Colombia FTA, which document can serve as a certification of origin?

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.

Under the US-Chile FTA, goods that have undergone a tariff classification change qualify under which rule of origin method?

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.

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?

Answer: Jordan

The US-Jordan FTA contains unique provisions for agricultural goods requiring wholly obtained status, reflecting the agreement's historical and political context.