CERTIFIED CUSTOMS SPECIALIST (CCS)
Case Study #004 – NAFTA
Study Material & Quiz
Study Material
Per the U.S. Customs and Border Protection website, “North American
Free Trade Agreement (NAFTA) established a free-trade zone in North
America; it was signed in 1992 by Canada, Mexico, and the United
States and took effect on Jan. 1, 1994. NAFTA immediately lifted tariffs
on the majority of goods produced by the signatory nations. It also calls
for the gradual elimination, over a period of 15 years, of most
remaining barriers to cross-border investment and to the movement of
goods and services among the three countries.”
 NAFTA: A Guide to Customs Procedures
http://www.cbp.gov/trade/nafta/a-guide-to-customsprocedures
 General Note 12 to the HTSUS (NAFTA)
(General Note 12 covers pages 25 to 184 of this document)
http://www.usitc.gov/publications/docs/tata/hts/bychapter/15
01gn.pdf
CCS Case Study #004 – NAFTA
NCBFAA Educational Institute
Page 2 of 5
1. Which of the following items are considered wholly produced?
o Mineral goods extracted in Canada, Mexico, or the United States
o Waste and scrap derived from production in Canada, Mexico, or the United
States
o A product with less than 7% non-North American content
o Mineral goods extracted in CA, MX, or the U.S. and waste and scrap derived from
production in CA, MX, or the U.S.
o All of the above
2. The NAFTA Certificate of Origin is prepared by which of the following?
o
o
o
o
o
Freight Forwarder
Importer
Exporter
Customs Broker
Any of the above
3. Which of the following always confers NAFTA origin?
o
o
o
o
60% of the value is North American
The tariff number changed from material to finished product (tariff shift)
It was sold to the shipper by a Canadian Company
None of the above
4. In the HTS a tariff subheading is:
o
o
o
o
o
Four digits
Two digits
Six digits
Eight digits
Ten digits
CCS Case Study #004 – NAFTA
NCBFAA Educational Institute
Page 3 of 5
5. The rule of origin for heading 7410 is:
o
o
o
o
o
A change to heading 7410 from any other chapter
A change to heading 7410 from any other heading
A change to heading 7410 from any other heading except from heading 7409
A change to heading 7410 from any other heading with a regional value content
A change to heading 7410 from any other heading except from headings 7405
through 7407
6. Which of the following is correct?
o
o
o
o
o
The de minimis for cigars is 7% of the transaction value
The de minimis for apparel is 7% of the transaction value
The de minimis for machinery is 7% of the transaction value
The de minimis for beer is 7% of the net cost value
De minimis never applies to agricultural product
7. Which of the following is correct?
o
o
o
o
“Packing” and “Packaging” are interchangeable terms
The cost of packaging is included in any required RVC calculation
The cost of packing is included in any required RVC calculation
Under the tariff shift method the packaging must also shift
8. A motor that is made in Mexico, of 100% North American products, sent to Colombia
for testing and packaging and then to the U.S. is still considered NAFTA originating.
o True
o False
9. Under General Note 12(u) a Zener diode classified in 8541.10.0050 made in Japan will
be considered NAFTA originating if imported from Canada.
o True
o False
10. A women’s cotton vest, 6211.42.0070, assembled in Canada from fabric woven in
Mexico will always be considered originating.
o True
o False
CCS Case Study #004 – NAFTA
NCBFAA Educational Institute
Page 4 of 5
11. Blanket Certificates of Origin are good for:
o
o
o
o
o
The 12-month period specified on the certificate
The calendar year in which they are signed
24 months from the date of signing
Any period specified on the certificate
Blanket Certificates of Origin do not expire
12. Importers claiming NAFTA on their shipments must:
o
o
o
o
o
Keep records for five years
Provide Customs with a copy of the certificate upon request
Have the certificate in their possession when making the claim
Pay duty on goods that are found after entry to not qualify
All of the above
13. Which of the following is true?
o
o
o
o
o
All goods of Mexican origin qualify for NAFTA
U.S. Goods returning from Canada can be entered as NAFTA / origin U.S.
NAFTA goods do not have to be marked with country of origin
Repairs done in Mexico or Canada always qualify for NAFTA
MPF applies to NAFTA importations
14. Retroactive NAFTA claims on goods entered without benefit of NAFTA may be made:
o
o
o
o
o
Within one year of the date of importation
Within one year of the date of entry
Within 180 days of the date of liquidation
Before liquidation
Within 180 days of the date of entry
15. In order for Ballasts for discharge lamps (8504.10.0000) to qualify as originating, when
made in Canada, the non-originating components must:
o
o
o
o
o
Be classified outside the subheading 8504.10
Be classified outside the heading 8504
Be classified in any other subheading except 8503.00
No change in tariff required
Comprise less than 50% of the net cost RVC
CCS Case Study #004 – NAFTA
NCBFAA Educational Institute
Page 5 of 5