CCS Trade Agreements and Programs 3

Question 1

Under the Generalized System of Preferences (GSP), the 35% value-added requirement means:

Accepted Answer

At least 35% of the appraised customs value must consist of materials and direct processing costs in the beneficiary country

Answer

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.

Question 2

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:

Accepted Answer

3% of total US apparel imports

Answer

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.

Question 3

Caribbean Basin Initiative (CBI) benefits do NOT extend to which of the following goods?

Accepted Answer

Canned tuna in oil

Answer

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.

Question 4

Under GSP, a product loses eligibility through 'Competitive Need Limitations (CNL)' when a beneficiary country's exports of that product exceed:

Accepted Answer

50% of total US imports of that product OR a dollar threshold set annually

Answer

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.

Question 5

The Andean Trade Preference Act (ATPA) was expanded and renamed in 2002. What is the current name of the program?

Accepted Answer

Andean Trade Promotion and Drug Eradication Act (ATPDEA)

Answer

ATPA was expanded by the Andean Trade Promotion and Drug Eradication Act (ATPDEA) in 2002, adding new product categories including petroleum products.

(CCS) Certified Customs Specialist Practice Test

(CCS) Certified Customs Specialist Practice Test

CCS Trade Agreements and Programs 3