Category Based Test
Ch 19 NAFTA


October 2013 - Customs Broker Test
Use:
- Harmonized Tariff Schedule of the United States (2013, No Supplements)
- Title 19, Code of Federal Regulations (revised as of April 1, 2013 Parts 0 to End)
- Customs and Trade Automated Interface Requirements (CATAIR)
- Instructions for Preparation of CBP Form 7501 (July 24, 2012)

Question 31
Where in the HTS can the general "NAFTA Change in Tariff Classification Rules" be located?
Section XI Notes
Chapter Notes
General Note 3
General Note 4
General Note 12
Answer>>

April 2013 - Customs Broker Test
Use:
- Harmonized Tariff Schedule of the United States (2012, NO Supplements)
- Title 19, Code of Federal Regulations (revised as of April 1, 2012 Parts 0 to End)
- Customs and Trade Automated Interface Requirements (CATAIR)
- Instructions for Preparation of CBP Form 7501 (July 24, 2012)

Question 74
Upon importation through a formal declaration, U.S. importer filed a claim for preferential treatment of goods under NAFTA. How many days does the U.S. importer have to revise the declaration, if based on erroneous information?
30 calendar days
30 business days
45 business days
45 calendar days
60 business days
Answer>>

October 2012 - Customs Broker Test
Use:
- Harmonized Tariff Schedule of the United States (2012, No Supplements)
- Title 19, Code of Federal Regulations (revised as of April 1, 2012 (Parts 0 to 140, 141 to 199)
- Customs and Trade Automated Interface Requirements (CATAIR)
- Instructions for Preparation of CBP Form 7501 (7-24-2012)

Question 68
When claiming North American Free Trade Agreement (NAFTA), a certificate of origin is required to be in the possession of the importer at the time preferential treatment is claimed. When is this not a requirement?
The shipment has a total value over $2,500
The port director waives the requirement
The merchandise is textiles, electronics, or pharmaceutical goods
The merchandise is originating
A post NAFTA claim is filed under 19 USC 1520d
Answer>>

Question 72
Footwear is imported on December 21, 2009, with entry summary filed on January 4, 2010, on entry number ABC-12345678. At the time of entry summary, the footwear is entered at the Harmonized Tariff Schedule of the United States (HTSUS) 6402.12.0000/free/MPF. An import specialist reclassifies the footwear at HTSUS 6402.99.0800/37.5%/MPF on April 10, 2010. The entry liquidates with the changes on April 30, 2010. The importer of record receives a bill for additional duties due as a result of the reclassification. The importer completes its review and determines the footwear qualifies for North American Free Trade Agreement (NAFTA). By which of the following dates MUST a valid NAFTA claim be filed to receive a refund in duties?
July 4, 2010
December 21, 2010
January 4, 2011
April 30, 2011
October 30, 2011
Answer>>

Question 74
An importer who claims preferential tariff treatment on a good under North American Free Trade Agreement (NAFTA) shall provide a copy of the certificate of origin pertaining to the good, at the request of the port director, which is in the possession of the importer. By whom should the certificate of origin be signed?
The importer of record, since he purchased and imported the goods
The shipper since he is transporting the goods into the United States
The customs broker, since he is facilitating the entry documents
The exporter or the exporter’s authorized agent, having knowledge of the relevant facts
The certificate of origin does not need a signature
Answer>>

April 2012 - Customs Broker Test
Use:
- Harmonized Tariff Schedule of the United States (2011, No Supplements)
- Title 19, Code of Federal Regulations (revised as of April 1, 2011 (Parts 0 to 140, 141 to 199))
- Customs and Trade Automated Interface Requirements (CATAIR)
- Instructions for Preparation of CBP Form 7501 (3-17-2011)

Question 15
PhoneMex is planning to set up a telephone repair and production facility in Mexico. PhoneMex will return all the telephones repaired or produced directly to the U.S. The returning telephones are not entitled to duty-free entry as "originating goods" under the North American Free Trade Agreement (NAFTA). Which PhoneMex operation(s) would NOT qualify as "repairs or alterations," entitling the returned telephones to duty-free treatment under 9802.00.50?
Fully functional, used telephones would be exported from the U.S. to Mexico, where they would be modified slightly by adding a "redial" capability.
Telephone subassemblies would be exported from the U.S. to Mexico for assembly into completed telephones.
Nonfunctional used telephones would be exported from the U.S. to Mexico, where they would be restored to their original condition.
Black and beige telephones would be exported from the U.S. to Mexico for repainting in more popular colors.
Telephones having defective or unacceptable ringer tones will be exported to Mexico from the U.S. to install an inexpensive, more pleasant and appealing sounding device.
Answer>>

October 2011 - Customs Broker Test
Use:
- Harmonized Tariff Schedule of the United States (2010, NO Supplements)
- Title 19, Code of Federal Regulations Revised as of April 1, 2010 (Parts 0 to 140, 141 to 199))

Question 78
The Certificate of Eligibility for textile or apparel products under the North American Free Trade Agreement must be signed by an authorized official of the ___?
Manufacturer
Importer
Shipper
Government
Foreign Consolidator
Answer>>

April 2011 - Customs Broker Test
Use:
- Harmonized Tariff Schedule of the United States (2010, NO Supplements)
- Title 19, Code of Federal Regulations Revised as of April 1, 2010 (Parts 0 to 140, 141 to 199))

Question 42
The following statements define an ‘indirect material’ EXCEPT:
A good used in the testing or inspection of a good, but not physically incorporated into the good
A good used in the maintenance of buildings or the operation of equipment associated with the production of a good
A good used in the production of a good whether or not it is physically incorporated into the good
An indirect material shall be considered to be an originating material without regard to where it is produced
A good that is not incorporated into the good but whose use in the production of the good can reasonably be demonstrated to be a part of that production
Answer>>

April 2010 - Customs Broker Test
Use:
- Harmonized Tariff Schedule of the United States (2009)
- Title 19, Code of Federal Regulations Revised as of April 1, 2009 (Parts 1-End)

Question 51
Foreign merchandise that is entered into a foreign trade zone and is manufactured or changed in condition may be exported to Canada or Mexico at a waived or reduced duty amount. Which of the answers below apply for filing and/or duty payment to claim the waived or reduced duty amount?
Within 30 calendar days, a CBP Form 3461 must be submitted to report the quantities and value of merchandise exported.
The estimated duty must be deposited with CBP 60 calendar days after the date of exportation of the goods.
A CBP Form 7501 must be filed 10 working days after the merchandise is physically removed from the Zone for export.
A CBP Form 7501 must be filed no later than 10 calendar days after the date of exportation to Canada or Mexico.
CBP Form 368 must be issued by the broker.
Answer>>

Question 56
A NAFTA Certificate of Origin shall be accepted by CBP for _____.
One year after the date of importation to the U.S.
Four years after the date on which the certificate was signed by the exporter or producer.
30 calendar days after date of discovery.
Four years after the date of the entry summary.
Five years after the date entry summary was filed by the broker
Answer>>

Question 58
Foreign merchandise that is entered into a Foreign Trade Zone and is manufactured or changed in condition may be exported to Canada or Mexico at a waived or reduced duty amount in the U.S. Which of the answers below apply for filing and/or duty payment to claim the waived or reduced duty amount?
Within 30 calendar days, a CPB Form 3461 must be submitted to report the quantities and value of merchandise exported.
The estimated duty must be deposited with CBP 60 calendar days after the date of exportation of the goods.
A CBP Form 7501 must be filed 10 working days after the merchandise is physically removed from the Zone for export.
A CBP Form 7501 must be filed no later than 10 calendar days after the date of exportation to Canada or Mexico.
Answers C and D
Answer>>

Question 63
Each importer claiming preferential tariff treatment NAFTA for a good imported into the U.S. shall maintain in the U.S. all documentation relating to the importation of the merchandise for a period of _____ years after the date of entry.
1
3
4
5
6
Answer>>

October 2010 - Customs Broker Test
Use:
- Harmonized Tariff Schedule of the United States (2010)
- Title 19, Code of Federal Regulations Revised as of April 1, 2009 (Parts 0 to 140, 141 to 199)

Question 58
Which of the following is not true about the NAFTA Certificate of Origin?
The Certificate must be signed by the exporter or the exporter’s authorized agent having knowledge of the relevant facts.
The Certificate must be in the possession of the importer at the time preferential treatment is claimed, unless waived by the Port Director pursuant to 19 CFR 181.22(d)(1).
A Certificate which is photocopied, faxed, or scanned on a computer disc is acceptable.
A Certificate is required for each importation on which NAFTA is claimed, but does not need to accompany each shipment.
A Certificate must be verified by the importer or his agent.
Answer>>

Question 60
On November 26, 2008, blended yarn (5205.13) consisting of 95% cotton fibers originating from Mexico and 5% nylon fiber (5506.10) from Taiwan, is imported from Mexico under HTSUS 5506.10. Subsequently on November 27, 2009, a Post Importation NAFTA claim is filed. Should the 520(d) claim be allowed?
The Taiwanese fibers of heading 5506.10, falls outside the range of non-allowable changes in tariff classification, therefore the claim should be allowed.
The claim should be allowed because the Mexican fibers predominate in weight, 95%, therefore the yarn originates under Note 12(b)(i) as ‘goods wholly obtained or produced entirely in the territory of the NAFTA parties.’
The claim should be allowed because it is within the 1-year time frame and under de minimis rule Note 12(f); it does originate.
This claim should be allowed because the blended yarn is a specialty yarn of chapter 56 and requires only a "single transformation," spun within a NAFTA territory.
This claim should not be allowed because the claim is outside the time frame.
Answer>>

October 2009 - Customs Broker Test
Use:
- Harmonized Tariff Schedule of the United States (2009)
- Title 19, Code of Federal Regulations Revised as of April 1, 2009 (Parts 1-End)

Question 47
A CBP origin verification finds a Canadian company, an experienced importer, deliberately failed to maintain records supporting its NAFTA claim because it would be too difficult to substantiate. The entry verified has NOT liquidated. CBP may _____.
assess a recordkeeping and a fraud penalty
collect duty and assess a recordkeeping penalty
not collect duty but may assess a fraud penalty
only deny the NAFTA claim and collect duty
not take any action
Answer>>

Question 49
If the port director finds a NAFTA Certificate of Origin to be illegible, defective or incomplete, the importer must be given at least _____ days to present a corrected certificate.
5 working
5 calendar
10 calendar
10 working
30 calendar
Answer>>

Question 6
What is the proper amount of drawback per unit due to a U.S. producer who imports material from Japan, pays $2 per unit in duty, deposits $1 in antidumping duties per unit, and then uses the material as a component in the manufacture of a NAFTA-originating product he exports to Canada? (Note: The product is entered in Canada at a FREE rate of duty.)
$0
$1
$2 plus the portion of the Merchandise Processing Fee apportioned to the material
$2
$3
Answer>>

April 2009 - Customs Broker Test
Use:
- Harmonized Tariff Schedule of the United States (2008) USITC Publication 3840 (Supplement 1)
- Title 19, Code of Federal Regulations Revised as of April 1, 2008 (Parts 1-End)

Question 43
A broker is asked for help by a U.S. importer in correcting a NAFTA Certificate of Origin executed for a shipment. The broker advises the importer that they shall within _____ make a corrected declaration and pay any duties that may be due.
20 calendar days after the date of discovery of the error
30 calendar days after the date of discovery of the error
45 calendar days after the date of discovery of the error
60 calendar days after the date of importation
90 calendar days after the date of importation
Answer>>

Question 45
Which of the following statements is NOT required when filing a post-importation claim under NAFTA?
Statement indicating the basis of appraisement used in determining the value of the shipment, i.e., transaction value, computed value, etc.
Statement indicating whether or not the importer of the good provided a copy of the entry summary or equivalent documentation to any other person
Declaration that the good qualified as an originating good at the time of importation
Statement as to whether or not any person has filed a protest or a petition or request for reliquidation relating to the good under any provision of law
Statement as to whether or not the importer is aware of any claim for refund, waiver or reduction of duties relating to the merchandise
Answer>>

Question 46
If the Port Director determines that a NAFTA Certificate of Origin is illegible or defective, the importer shall be given a period of not less than _____ working days to submit a corrected Certificate.
5
10
30
90
314
Answer>>

Question 49
Which statement is INCORRECT for the identification of goods which are "wholly obtained or produced" under the NAFTA?

A good originates in the territory of a NAFTA country where the good is _____.
a mineral good extracted in the territory of one or more of the NAFTA countries
a vegetable or other good harvested in the territory of one or more of the NAFTA countries
a good obtained from hunting, trapping or fishing in the territory of one or more of the NAFTA countries
fish, shellfish or other marine life taken from the sea by a vessel registered or recorded with a NAFTA country and flying its flag
used goods collected in the territory of one or more of the NAFTA countries
Answer>>

October 2008 - Customs Broker Test
Use:
- Harmonized Tariff Schedule of the United States (2008) USITC Publication 3840 (Supplement 1)
- Title 19, Code of Federal Regulations Revised as of April 1, 2007 (Parts 1-199)

Question 57
A NAFTA claim for a refund of duties after importation does NOT need to contain which of the following:
A written declaration stating that the merchandise qualified as originating at the time of importation
A written statement indicating whether or not the importer provided a copy of the entry summary or equivalent documentation to anyone else
A written statement indicating whether or not Drawback has been paid
A written statement indicating whether or not any person has filed a Protest, Petition, or request for reliquidation of the merchandise
A NAFTA Certificate of Origin
Answer>>

Question 61
Which statement is TRUE regarding the NAFTA eligibility of a shipment of men’s western boots entered under 6403.51.3030? The boots are made in Mexico. The only foreign material is tanned ostrich leather skins imported from South Africa costing $12.69/pr. The originating materials have a total cost of $14.14/pr. Craftsman labor costs are $1.11/pr. Factory overhead costs are $0.40/pr. The F.O.B. invoice value is $69.00/pr.
Boots qualify for NAFTA, meets tariff shift and has a RVC under the Transaction Value Method of 81.61%
Boots qualify for NAFTA, meets tariff shift and has a RVC under the Net Cost Method of 55.22%
Boots do not qualify for NAFTA and the tariff shift requirement is not met.
Boots do not qualify for NAFTA and although the boots meet the tariff shift, the RVC under the Net Cost Method is 52.7%
Boots do not qualify for NAFTA and although the boots meet the tariff shift, the RVC under the Build Up Method is 49.89%.
Answer>>

Question 63
An importer has _____ to file a post-importation duty refund claim for any excess duties on a NAFTA shipment.
one year from the date of entry summary
one year from the date of liquidation
one year from the date of entry
one year from the date of importation
180 days from the date of liquidation
Answer>>

October 2007 - Customs Broker Test
Use:
-Harmonized Tariff Schedule of the United States (2007) USITC Publication 3840
-Title 19, Code of Federal Regulations Revised as of April 1, 2007 (Parts 1-199)

Question 44
The importer of men’s pants from Mexico gives the broker a certificate of origin (CBP Form 434) showing that the fabric and all processing (cutting, sewing, etc.) originated or was performed in Mexico. The pants are classified under 6203.41.1810 at 41.9 cents/kilogram + 16.3% ad valorem. How will you enter the pants?
Duty free under the U.S.-Central American Free Trade Agreement
Duty free under the U.S.-North American Free Trade Agreement
Dutiable at 41.9 cents/kilogram + 16.3% ad valorem
Duty free under the Generalized System of Preferences
Duty free because this is a designated Beneficiary Country under the Andean Trade Promotion and Drug Eradication Act
Answer>>

Question 45
After filing the entry summary for picture frames from Canada, you realize they are eligible for duty free treatment under the North American Free Trade Agreement. Since the goods were entered as dutiable, you should _____.
file a claim under Section 520(d) within 180 days after liquidation
file a claim under Section 520(c) within 365 days from the date of liquidation
file a claim under Section 520(c) within 180 days from date of liquidation
file a claim under Section 520(d) within 365 days from the date of entry
wait until the entry liquidates and file a protest under Section 514 within 180 days
Answer>>

Question 50
The NAFTA Certificate of Origin must be retained in the _____.
U.S. by the importer until notification of liquidation is received from CBP
NAFTA country of origin by the producer for one year after liquidation
NAFTA country of origin by the producer for five years after liquidation
U.S. for five years after entry of the good with all relevant documentation
NAFTA country of origin for five years after entry with all related documentation
Answer>>

April 2007 - Customs Broker Test
Use:
-Harmonized Tariff Schedule of the United States (2007) (USITC Publication 3902)
-Title 19, Code of Federal Regulations Revised as of April 1, 2006 (Parts 1-199)

Question 51
Under the North American Free Trade Agreement, which of the following would NOT be considered an "indirect material" in the manufacture of a ceramic dish?
Purified water added to the ceramic mix
Production molds
Electricity used to fire the dishes
Testing supplies
Lubricants used on the mixing machine
Answer>>

October 2006 - Customs Broker Test
Use:
- Harmonized Tariff Schedule of the United States (2005) (USITC Publication 3745)
- Title 19, Code of Federal Regulations Revised as of April 1, 2004 (Parts 1-199)

Question 43
How much of the duty paid can be refunded on a drawback claim for a machine imported into the U.S. in 2005, tested for precision, then sold and exported to a customer in Canada?
None
Partial
99%
The amount allowed under the lesser of the two rule
100%
Answer>>

Question 45
What is the proper amount of drawback per unit due to a U.S. producer who imports material from Japan, pays $2 per unit in duty, deposits $1 in anti-dumping duties per unit, and then uses the material as a component in the manufacture of a NAFTA-originating product he exports to Canada? The product is entered in Canada at a FREE rate of duty.
$0
$1
$2
$3
$2 plus the portion of the Merchandise Processing Fee apportioned to the material
Answer>>

April 2006 - Customs Broker Test
Use:
- Harmonized Tariff Schedule of the United States (2005) (USITC Publication 3745)
- Title 19, Code of Federal Regulations Revised as of April 1, 2004 (Parts 1-199)

Question 47
What is the retention period for all drawback certificates?
One year from the date of liquidation
One year from the date of payment of the drawback claim
Three years from the date of liquidation
Three years from the date of payment of the drawback claim
Five years from the date of payment of the drawback claim
Answer>>

Question 50
A post-importation NAFTA duty refund claim may be filed within:
90 days after the date of liquidation of the goods
1 year after the date of entry of the goods
180 days after the date of liquidation of the goods
1 year after the date of importation of the goods
1 year after the date of liquidation of the goods
Answer>>

Question 52
If the port director finds a NAFTA Certificate of Origin to be illegible, defective or incomplete, the importer must be given a least _____ to present a corrected certificate.
5 business days
5 calendar days
10 calendar days
10 business days
30 calendar days
Answer>>

Question 53
Where no claim for preferential treatment under the NAFTA was made at the time of importation, an importer may file a claim for preferential treatment under NAFTA within _____.
1 year from the date of exportation of the goods
1 year from the date of importation of the goods
1 year from the date of liquidation of the goods
90 days from the date of liquidation of the entry
90 days from the date of exportation of the goods
Answer>>

October 2005 - Customs Broker Test
Use:
- Harmonized Tariff Schedule of the United States (2005) (USITC Publication 3745)
- Title 19, Code of Federal Regulations Revised as of April 1, 2004 (Parts 1-199)

Question 49
Which is NOT considered an incidental operation for purposes of claiming same condition drawback for goods shipped to Canada or Mexico in 2005?
Adding water to grape juice concentrate imported from Brazil and repackaging the juice into larger bottles
Painting anchors imported from Germany
Reconstituting imported dehydrated onions imported from France, adding them to broth and canning as soup
Testing a calibration device from Germany
Slitting stainless steel coils imported from Malaysia
Answer>>

Question 54
Estimated duty for goods imported into the U.S. under a NAFTA duty-deferral program is due within______.
60 calendar days after the date of exportation to Canada or Mexico
10 calendar days after the exportation to Canada or Mexico
10 working days after the exportation to Canada or Mexico
60 working days after the filing of a claim for a waiver or reduction of the duties is filed with CBP
60 calendar days after the filing of a claim for a waiver or reduction of the duties is filed with CBP
Answer>>

April 2005 - Customs Broker Test
Use:
- Harmonized Tariff Schedule of the United States (2004) (USITC Publication 3653) (No Supplements)
- Title 19, Code of Federal Regulations Revised as of April 1, 2004 (Parts 1-199)

Question 8
A NAFTA Certificate of Origin may not be required when the value of an importation does not exceed ______, and the importer, producer, exporter or authorized agent completes a signed statement that the good qualifies as originating.
$2,500
$1,250
$2,000
$200
$10,000
Answer>>

October 2004 - Customs Broker Test
Use:
- Harmonized Tariff Schedule of the United States (2004) (USITC Publication 3653) (No Supplements)
- Title 19, Code of Federal Regulations Revised as of April 1, 2003 (All parts)

Question 44
Exporters or producers are required to maintain any NAFTA certificate of origin used for a NAFTA claim for at least _____.
2 years
5 years
3 years
4 years
1 year
Answer>>

October 2003 - Customs Broker Test
Use:
- Harmonized Tariff Schedule of the United States (2003) (USITC Publication 3565) (No supplements)
- Title 19, Code of Federal Regulations (19 CFR Parts 1 to 199) Revised as of April 1, 2002

Question 11
Which ONE of the following scenarios would qualify as originating under the NAFTA Rules of Origin?
A keyboard pipe organ (9203) is manufactured in Canada from parts made in the U.S., except for the dedicated pipes, which were made in Switzerland. The RVC is 46%.
A shotgun (9303) is manufactured in Canada from parts made in the U.S. except for the shotgun barrel and stock, which were made in Germany. The RVC is 48%.
Decorated glazed ceramic tiles on a backing (6908) is made in Mexico from glaze, paint and backing made in Mexico. The unglazed tiles used in the product are from El Salvador.
A household refrigerator (8418.21) is made in Canada and contains a compressor and condenser of German origin valued at 15% of the total cost.
Plastic buttons covered with silk (9606.29) are manufactured in Mexico from a button mold made in the U.S., acrylic made in Taiwan and silk fabric made in China.
Answer>>

Question 32
Void Question. Which ONE of the following would qualify as originating under the NAFTA Rules of Origin?
A wool dress (6204.41) cut and sewn in Mexico from fabric woven in Mexico of wool yarn made in Peru
Women’s silk pants (6204.69) cut and sewn in Canada from silk fabric made in Hong Kong
A boy’s polyester robe (6207) cut and sewn in Mexico from fabric woven in U.S. from polyester yarn made in Korea
A baby’s cotton shirt (6209) cut and sewn in Canada from cotton fabric made in Taiwan
An acrylic blanket (6301) cut and sewn in Hong Kong from fabric that was woven in Mexico of yarns made in Mexico
Answer>>

Question 75
Which ONE of the following is NOT a sales promotion, marketing, or after-sales service cost under the NAFTA?
Retailer or wholesaler rebates
General liability insurance
Payments by the producer to other persons for warranty repairs
Marketing Director’s salary
Free samples
Answer>>

April 2003 - Customs Broker Test
Use:
- Harmonized Tariff Schedule of the United States (2003) (USITC Publication 3565) (No supplements)
- Title 19, Code of Federal Regulations (19 CFR Parts 1 to 199) Revised as of April 1, 2002

Question 10
Which ONE of the following choices is NOT considered a "related person" under NAFTA?
A father and adopted daughter.
Cousins.
Legally recognized partners.
Two people who are officers in one another's businesses.
Employer and employee.
Answer>>

Question 30
Which ONE of the following scenarios would NOT qualify as originating under the NAFTA Rules of Origin?
A silver necklace (7113) made in Mexico from silver made in Bolivia.
Cotton curtains (6303) cut and sewn in Canada from cotton of yarns made in China.
A silk quilt (9404.90) manufactured in Mexico from polyester fibers made in the U.S and fabric woven in Mexico from silk yarn made in China.
Shoe heels (6406.20) of plastic manufactured in Mexico from plastic pellets made in Taiwan.
Tuna (1604) prepared and canned in Mexico from fish caught in Thailand.
Answer>>

Question 57
The Cleveland Lock Co. has placed an order from an unrelated padlock vendor, Fleur de Lis Locks Ltd., of Montreal, Canada. Fleur de Lis Locks has agreed to sell the locks at US $5.10 each, FOB Montreal. Fleur de Lis Locks, however, contracts the order to Sécurité Ltee, a producer of locks also located in Montreal. Sécurité sells the product arms length to Fleur de Lis Locks at US $3.75 each, F.O.B., and ships the locks direct to Cleveland Lock Co. The record shows that Fleur de Lis provided, at no charge to Sécurité, certain Canadian-made retail packaging bearing Cleveland Lock's name and mark. The value of the packaging is US $0.20 each.

After being informed by Sécurité Ltee that the lock includes a total of $1.75 each in non-originating materials, exporter Fleur de Lis Locks completes a NAFTA Certificate of Origin for the benefit of its customer.

The instant locks are classified as HTS 8301.10.

The specific NAFTA rules of origin that apply to goods of this classification are Rules GN12(t)83.1(A) and GN12(t)83.1(B). They read:

(A) A change to subheadings 8301.10 through 8301.50 from any other chapter; or

(B) A change to subheadings 8301.10 through 8301.50 from subheading 8301.60, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used.

Based SOLELY upon the information provided above, which ONE of the following statements is correct?
The lock qualifies as originating under both the transaction value method and net cost methods.
The lock qualifies as originating under the transaction value method, at a regional value content of 65.69 percent.
The lock fails to qualify as originating under the transaction value method, at a regional value content of 53.33 percent.
The lock fails to qualify as originating under the transaction value method, at a regional value content of 55.70 percent.
The lock qualifies as originating under the net cost method, at a regional value content of 55.70 percent.
Answer>>

Question 68
Plastic resin originating in France was imported from France into the United States and a duty of $4000 was paid to U.S. Customs. This resin was used in the United States to produce molded plastic containers, which qualified for NAFTA tariff preference when exported to Mexico. Upon importation into Mexico, an entry was filed and there was a payment of duty to the Mexican Government. The U.S. manufacturer has now filed a direct identification manufacturing drawback claim with U.S. Customs, furnishing appropriate documentation of the payment of duty of the equivalent of US $1500 by the Mexican importer in Mexico. The claimant is entitled to an amount of $__________ in duty drawback and the country of ____________ will provide the refund.

Which ONE of the following choices correctly fills in the blanks found directly above?
$1485; U.S.
$2475; U.S
$3960; U.S
$1485; Mexico
$3960; Mexico
Answer>>

October 1997 - Customs Broker Test
Use:
- Harmonized Tariff Schedule of the United States (1997)
- Title 19, Code of Federal Regulations (19 CFR Parts 1 to 199) Revised as of April 1,1996

Question 82
A client informs a Customs broker that she would like to export certain goods to Canada and Mexico for repairs or alterations, some pursuant to warranty agreements with suppliers located in both countries and some which are not subject to warranty agreements. The client has heard that, under the North American Free Trade Agreement (NAFTA), goods sent to Canada and Mexico for repairs or alterations provided for in the subheadings of the Harmonized Tariff Schedule, 9802.00.40 and 9802.00.50, are free of duty. The client would like the broker to confirm this prior to commencing the export operation.

Based on the above paragraph, which of the following statements is correct?
Goods returned after having been repaired or altered in Mexico and Canada, whether or not pursuant to a warranty, are eligible for duty-free treatment.
Goods returned after having been repaired or altered in Canada, whether or not pursuant to a warranty, are eligible for duty-free treatment.
Goods returned after having been repaired or altered in Mexico, whether or not pursuant to a warranty, are eligible for duty-free treatment.
Goods returned after having been repaired or altered in Mexico, whether or not pursuant to a warranty, are eligible for duty-free treatment; from Canada, only repairs or alterations pursuant to a warranty are eligible for duty-free treatment.
Goods returned after having been repaired or altered in Canada, whether or not pursuant to a warranty, are eligible for duty-free treatment; from Mexico, only repairs or alterations pursuant to a warranty are eligible for duty-free treatment.
Answer>>


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April 200945  Ch 19 NAFTA
April 200946  Ch 19 NAFTA
April 200949  Ch 19 NAFTA
October 200857  Ch 19 NAFTA
October 200861  Ch 19 NAFTA
October 200863  Ch 19 NAFTA
October 200744  Ch 19 NAFTA
October 200745  Ch 19 NAFTA
October 200750  Ch 19 NAFTA
April 200751  Ch 19 NAFTA
October 200643  Ch 24 Drawback
October 200645  Ch 24 Drawback
April 200647  Ch 19 NAFTA
April 200650  Ch 19 NAFTA
April 200652  Ch 19 NAFTA
April 200653  Ch 19 NAFTA
October 200549  Ch 19 NAFTA
October 200554  Ch 19 NAFTA
April 20058  Ch 19 NAFTA
October 200444  Ch 19 NAFTA
October 200311  Ch 19 NAFTA
October 200332  Ch 19 NAFTA
October 200375  Ch 19 NAFTA
April 200310  Ch 19 NAFTA
April 200330  Ch 19 NAFTA
April 200357  Ch 19 NAFTA
April 200368  Ch 19 NAFTA
October 199782  Ch 19 NAFTA
  CorrectWrong 
 Total   
 Percent   
 Passing   



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