October 2023 — Question 55
Which statement about the U.S.-Mexico-Canada Agreement (USMCA) is FALSE?
- AUnder the USMCA, similar to the North American Free Trade Agreement (NAFTA) there are no special origination provisions pertaining to textile and apparel goods put up in sets for retail sale.✓ CBP's answer
- BUnder the USMCA, goods classifiable as goods put up in sets for retail sale as provided for in the general rules of interpretation of the tariff schedule shall be considered to be originating goods if each of the goods in the set is an originating good.
- CUnder the USMCA, goods classifiable as goods put up in sets for retail sale as provided for in the general rules of interpretation of the tariff schedule shall be considered to be originating goods if the total value of the nonoriginating goods in the set does not exceed ten percent (10%) of the value of the set.
- DUnder the USMCA, goods classifiable as goods put up in sets for retail sale as provided for in the general rules of interpretation of the tariff schedule shall be considered nonoriginating goods if the total value of the nonoriginating goods in the set exceeds 20 percent (20%) of the value of the set.
Why this answer
The USMCA rules of origin in the cited general note include a provision specifically addressing goods put up in sets for retail sale under the tariff schedule's general rules of interpretation, including textile and apparel sets: a set is originating if every good in it is originating, or if the total value of the nonoriginating goods does not exceed ten percent of the value of the set. Statements B, C, and D each track that rule, since a set whose nonoriginating content exceeds twenty percent necessarily exceeds the ten percent allowance. Statement A is false because, unlike NAFTA, the USMCA did add special origination treatment for retail sets, so claiming none exists misstates the agreement. Watch for: Assuming USMCA simply carried NAFTA forward and missing the new retail-set origination provisions.
Original CBLE Simulator explanation — the question and key above are CBP's; this analysis is ours. Verify against the current edition before relying on it in practice.
CBP's cited authority
Answer and citations as published in CBP's official answer key for the October 2023 examination.
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