Home Discussion Trade Agreements Quiz 1, Question 4

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  • Deanna Schlieve
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    Would you be so kind as to go over in a little more detail the decision-making process on this one? I’m having difficulty aligning the citation with GSP eligibility. Thanks so much!

    4. Question 1 point
    Which one of the following facts would exclude a product from GSP eligibility?

    A. A shipment of hydrogen is classified under 2804.10.0000, country-of-origin, Indonesia.
    B. A shipment of stone monuments classified under 6802.99.0030, country-of-origin, India, is shipped from the Port of Calcutta on a through bill of lading with destination United States. It arrives at the Port of Montreal, Canada, and is shipped in-bond to the United States.
    C. The cost of processing done on the above shipment of stone monuments in India was 40 percent of the appraised value at the time of its entry into the United States.
    D. A shipment of jewelry classified under 7113.11.2000 from Thailand was shipped via air. The shipment was on a through bill of lading to the United States, but the plane landed in Rome. The merchandise did not leave the plane, nor enter the commerce of Italy. It then proceeded directly to the United States.
    E. A shipment of carrots is classified under 0712.90.1000 from Chile.

    Correct choice is: D
    Explanation: 19. CFR 113.13 and HTS GN 4(d), currently it has to be classifiable under 7113.11.50

    admin
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    4. Products of Countries Designated Beneficiary Developing Countries for Purposes of the Generalized System of Preferences (GSP)

    (c) Articles provided for in a provision for which a rate of duty of “Free” appears in the “Special” sub column followed by the symbols “A” or “A*” in parentheses are those designated by the President to be eligible articles for purposes of the GSP pursuant to section 503 of the Trade Act of 1974.

    (d) Articles provided for in a provision for which a rate of duty of “Free” appears in the “Special” sub column of rate of duty column 1 followed by the symbol “A*” in parentheses, if imported from a beneficiary developing country set out opposite the provisions enumerated below, are not eligible for the duty-free treatment provided in subdivision (c) of this note:

    7113.11.50 India; Thailand

    Though the answer choice mentions 7113.11.2000, it appears that the tariff was amended subsequently to make jewelry classifiable under 7113.11.50.

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