Knowledge Check 17

For this and the following exercises, you will need to review the HTS in hard copy or online at http://www.usitc.gov/tata/hts/bychapter/index.htm(opens in a new tab).

Question

01/05

What tariff provision grants reduced-duty entry to goods assembled abroad from American components?

A.9801.00.10

B.9802.00.80

C.9804.00.20

Question

02/05

Under provision 9802.00.80, is any duty charged on goods entered under our free trade agreements with Israel and Morocco?

A.Yes, under both agreements.

Correctly selected

B.No duty on eligible articles from Morocco but duty may be charged on those from Israel.

Correctly unselected

C.No duty on eligible articles from Israel but duty may be charged on those from Morocco.

Question

03/05

HTS  5702.99.05 covers certain hand-woven carpets comprising materials other  than wool or man-made textile materials. From which one of the  following countries would these types of carpets enter free of duty  under the Generalized System of Preferences (GSP), assuming that the  goods meet the local content requirement for GSP? (Hint: General note 4  covers GSP, including the list of eligible countries.)

A.France

B.Thailand

C.Pakistan

D.India

Question

04/05

In which 4-digit classification of the HTS are temporary reductions or suspensions of general rates of duties typically listed?

A.9902

B.9801

C.9911

D.9903

Question

05/05

What  was the temporary column 1-general rate of duty that corresponded to  HTS 9902.01.60 prior to the provision’s expiration?  What is the  permanent column 1-general rates of duty that corresponds to HTS  9902.01.60?

A.Free; 4.2%

B.2%; 4.2%

C.Free; 10%

1.BCorrect. A duty is charged on the value of the imported article, minus the cost or value of U.S. inputs.
2.ACorrect.  Eligible products of Israel and Morocco under the FTA enter free of  duty under the special duty rate "Free (IL)" and “Free (MA),”  respectively. But note, for example, that eligible articles under CBERA  may have duty charged on the non-U.S. portion of their value, depending  on the special duty rate shown in the tariff provision covering the  goods in chapters 1-97. FTA rates for CBERA appear in the special duty  rates column followed by CBERA's code, "C."
3.CCorrect.  Both Thailand and Pakistan are eligible for GSP according to the list  given in general note 4(a). However, the special column for HTS  5702.99.05 has the code "A*", indicating that one or more of the GSP  countries are specifically excluded. General note 4(d) shows that  Thailand is not eligible for GSP for HTS 5702.99.05. Therefore, Pakistan  is the only country on the list that would receive GSP preferences for  these articles.
4.A.Correct. Subchapter II of chapter 99 (HTS 9902) covers temporary reduction in rates of duty.
5.A.Correct.  In the article description for heading 9902.01.60, there is a  parenthetical reference to the permanent classification for the chemical  given the duty suspension, subheading 2836.99.10, for which the general  duty rate is 4.2%; importers can claim duty-free entry under  9902.01.60.美国