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
In the context of FTA rules of origin, 'accumulation' allows:
Answer: Materials or production from one FTA partner country to count toward origin requirements of another FTA partner
Accumulation (also called cumulation) permits producers to count materials and processing from FTA partner countries as if they originated in the exporting country, helping goods meet origin thresholds.
The 'de minimis' rule in most US FTAs allows non-originating materials to be disregarded if they do not exceed what percentage of the adjusted value of the good?
Answer: 10%
Most US FTAs allow non-originating materials that fail to meet the tariff shift rule to be disregarded if their total value does not exceed 10% of the adjusted value of the good.
Under USMCA, which method is used to calculate Regional Value Content (RVC) for most goods other than automotive?
Answer: Net Cost and Transaction Value methods
USMCA provides two RVC calculation methods: the Transaction Value method (based on the good's transaction value) and the Net Cost method (based on total cost minus excluded costs).
Under USMCA rules of origin, 'neutral elements' such as fuel, tools, and dies used in production:
Answer: Are disregarded entirely when determining whether a good is originating
Neutral elements (energy, fuel, tools, machinery, equipment used in production) are disregarded and do not affect origin determination regardless of where they come from.
When goods are shipped through a non-FTA third country, which condition is typically required to maintain preferential origin status?
Answer: The goods must not enter the commerce of the third country and must remain under customs control
Transit rules require that goods not enter the commerce of an intermediate country and remain under customs control to preserve their preferential origin status.
Under the 'roll-up' (also called 'absorption') principle in FTA rules of origin:
Answer: Once a sub-component qualifies as originating, its entire value counts as originating when used in further production
Roll-up means that once an intermediate good qualifies as originating, its full value (not just the originating portion) is treated as originating content when used in further production.
For goods traded under the US-Singapore FTA, textile and apparel products must generally meet which origin requirement?
Answer: Yarn-forward rule
The US-Singapore FTA uses a yarn-forward rule for most textiles and apparel, meaning production from the yarn stage onward must occur in the FTA territory.