International Law Exam 3: Ch. 12 Part 2

What example was given in class to show the tariff-shift rule?

Bars of chocolate are turned into liquid chocolate Changes class but not the actual product

Countries receiving this (Generalized System of Preferences) preferential treatment are called ____________________________

Beneficiary Developing Countries

Since WTO has not made a final agreement on which tests it will use with member countries, it allows each country to do what?

Choose its own tests to use

Dutiable Status is determined by what three things?

Classification and Coding of the Goods The Customs Value of the Good Country of Origin of the goods

The ______________ is that country from which an imported good is said to have originated according to specific legal rules called the rules of origin

Country of Origin

Customs means what?

Dealing with imports or foreign goods

__________________ are raw materials or components

Inputs

WTO= No Formal Agreement Yet = __________________________

Looks Like WTO Wants to Use the Tariff-Shift Rule Test for Member Countries

______________________ rules of origin are those applicable to imports of developed countries that will receive normal tariff treatment

Non-preferential

What are the two categories of country of origin rules?

Non-preferential rules of origin Preferential rules of origin

Conspicuous means what?

Obviously placed

What is a qualified claim?

One that indicates that the product was partially made in the USA

________________ rules of origin are those applicable to goods traded within a free trade area or that receive preferential tariff treatment under trade preference programs for developing countries

Preferential

Tariff-Shift Rule = _____________________

Product Changed Tariff Classifications

The "Partly Made in the USA" rules states that products that cannot be labeled as "Made in the USA," may still bear a ________________

Qualified Claim

What is the wholly obtained rule?

The general rule applicable to most non-preferential trade where the country of origin of an article imported into the US is the country in which the article was wholly obtained

What are the rules of origin?

The legal rules used to determine the country of origin of imported products

What is the transactional value?

The price actually paid for the merchandise when sold for export in the US; amount paid by the consumer; purchase price

What does the Federal Trade Commission (FTC) Marking Rules apply primarily to?

The use of goods made in the USA

What is an example of a Customs Marking Rules in Action?

Toy Car that says "Made in China" on the bottom

With developing countries, the US grants ____________________, or preferential tariff treatment, to help further their social and economic developments

Trade preferences

The customs value of the good is determined by looking at the _____________________

Transactional value

What are the two tests to deal with non-preferential rules of origin (or developed countries)?

Wholly Obtained Rule Substantial Transformation Test

___________________ means that it was wholly the growth, product, or manufacture of one country

Wholly obtained

Regional Value Content Test = _____________________

% of Finished Goods

Classification and Coding of the Goods = _____________________

Determining What It Is That Is Being Imported

Non-preferential rules of origin = _____________________

Developed countries

The _____________ of goods means the legal status of the imported good at the time of entry

Dutiable Status

Non-preferential rules of origin = Developed Countries = _______________________

Either Wholly Obtained Rule OR Substantial Transformation Test

Preferential Rules of Origin= Used for Countries in a Free Trade Area or for Developing Countries = __________________________________

Either the Tariff-Shift Rule Test or the Regional Value Content Test

The main focus of the _________________ is to prevent unfair or deceptive trade practices

Federal Trade Commission

US Customs Marking Rules = _______________________

Foreign Goods

A _____________________ consists of two or more countries that are a party to a free trade agreement that reduces or eliminates tariffs on goods and removes trade barriers

Free Trade Area

What are the two types of places preferential rules of origin apply?

Free Trade Area Developing Countries

The most well-known trade preference is the ________________________

Generalized System of Preferences

With non-preferential rules of origin, since countries are developed, they are able to pay ______________ tariffs

Higher

What are the characteristics of a developed country? (5)

Higher per capita income Higher standard of living In later stages of industrialization Stable economy Stable government

What is the regional value content test?

Requires some minimum percentage of the value of a finished article to be added in a country in order for that product to have "originated' there

To use a qualified claim, there must be what?

Still a significant amount of US material in the product

The __________________ is used, which is when the original good/article loses its identity as such and is transformed into a new and different article of commerce having a new name, character, or use different from the original item

Substantial Transformation Test

Duty = ____________

Tariff

The classification and coding of goods is determined by what two things?

Tariff Classification Categorizing the different kinds of goods based on their name, use, and physical characteristics

What are the two tests used when dealing with free trade areas or developing countries?

Tariff-Shift Rule Regional Value Content Test

In the WTO Agreement on Rules of Origin, the WTO plans on using the _________________ for its member countries.

Tariff-Shift Rule Test

What does the Tariff-Shift Rule state?

That the country of origin is the last country in which all inputs in the finished product underwent a defined change in tariff classification

What does the US Customs Marking Rules require?

That the country of origin of every article of foreign origin imported into the US must be permanently marked in English in a conspicuous place

What example was given to show a Free Trade Area?

The North American Free Trade Agreement (NAFTA)

The WTO does, however, have a long-term project to finalize a test it will use with its member countries, and that project is called ___________________________

The WTO Agreement on Rules of Origin

What are the two kinds of marking and labeling product rules?

US Customs Marking Rules Federal Trade Commission (FTC) Marking Rules

To be conspicuous, it must be presented in such a manner that an ____________________ in the US understands where that good came from

Ultimate Purchaser

What three countries are a part of the North American Free Trade Agreement?

United States Mexico Canada

Customs Value = Transactional Value = __________________

What good is actually worth

What are the "Made in the USA Rules"?

Where a seller may not claim that a product was made in the USA unless all or virtually all of the materials, processing, or component parts are made in the US and their final assembling or processing took place there

What is the Generalized System of Preferences?

Where the US aids in the economic development of certain developing countries by allowing their products to enter the US at a reduced tariff rate or just completely tariff free

Country of Origin = _________________

Where the goods came from