April 2019 — Question 73
Automotive radial tires classified in HTSUS 4011.10.10 that were produced in Korea and originate under the terms of the U.S.-Korea FTA (KORUS) are entered into the commerce of Japan by Toyota then are rerouted to Georgetown, KY, owing to a supply chain disruption in the U.S. Are these tires eligible for KORUS duty preference upon importation into the U.S. and why?
- ANo, because a Japanese company does not have standing to make a preference claim under the KORUS.
- BYes, because the KORUS allows originating goods to enter the commerce of a third country without losing originating status as long as they are not further processed.
- CNo, because the KORUS does not allow originating goods to enter the commerce of a third country without losing originating status.✓ CBP's answer
- DYes, because the KORUS allows originating goods to be further processed in another country as long as the processing is merely a finishing operation that does not result in a change in tariff classification. F. Yes, because the KORUS allows originating goods to be further processed in another country as long as the processing is not greater than the 10% permissible under de minimis.
CBP's cited authority
§ The HTSUS General Note 33(c)(iii)(B)§ 19 CFR 10.1025(a)(2) both require that an originating good remain under customs control in the territory of a non-Party
Answer and citations as published in CBP's official answer key for the April 2019 examination.
Reading answers is easy. The exam is 80 of these in 4.5 hours.
Pass rates run 12–30%. Find out in 15 minutes whether you'd clear the 75% line today — free, no signup.