Trade Agreements and Programs Flashcards
7 cards from real CCS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Trade Agreements and Programs flashcards as text
Under the Generalized System of Preferences (GSP), the 35% value-added requirement means:
Answer: At least 35% of the appraised customs value must consist of materials and direct processing costs in the beneficiary country
GSP requires that at least 35% of the appraised customs value of the article consist of the cost or value of materials produced in the beneficiary country plus direct costs of processing.
Under the African Growth and Opportunity Act (AGOA), eligible Sub-Saharan African countries that qualify under the 'Special Rule' for apparel may use third-country fabric and still receive duty-free treatment up to a cap of:
Answer: 3% of total US apparel imports
The AGOA 'third-country fabric' provision (Special Rule) allows lesser-developed AGOA beneficiaries to use fabric from any country, subject to an annual cap of approximately 3.5% of total US apparel imports.
Caribbean Basin Initiative (CBI) benefits do NOT extend to which of the following goods?
Answer: Canned tuna in oil
Canned tuna in oil (but not in water) is one of the categories specifically excluded from CBI duty-free treatment under the original Caribbean Basin Economic Recovery Act.
Under GSP, a product loses eligibility through 'Competitive Need Limitations (CNL)' when a beneficiary country's exports of that product exceed:
Answer: 50% of total US imports of that product OR a dollar threshold set annually
A GSP beneficiary country loses eligibility for a specific product if its exports exceed 50% of total US imports of that product or an annually-adjusted dollar threshold.
The Andean Trade Preference Act (ATPA) was expanded and renamed in 2002. What is the current name of the program?
Answer: Andean Trade Promotion and Drug Eradication Act (ATPDEA)
ATPA was expanded by the Andean Trade Promotion and Drug Eradication Act (ATPDEA) in 2002, adding new product categories including petroleum products.
Under AGOA, which of the following is a prerequisite for a Sub-Saharan African country to maintain eligibility?
Answer: The country must be making progress toward a market-based economy and rule of law
AGOA eligibility requires countries to make progress toward market economies, rule of law, political pluralism, and meet other criteria reviewed annually by the US President.
Under the Caribbean Basin Trade Partnership Act (CBTPA), qualifying apparel assembled from US-formed and cut fabric receives duty-free treatment subject to:
Answer: An annual tariff-rate quota (TRQ)
CBTPA apparel benefits for third-country fabric products are subject to a tariff-rate quota (TRQ) that caps the quantity eligible for duty-free treatment each year.