Following CBLE question is the focus of this video:

Automotive radial tires classified in HTSUS 4011.10.10 that were produced in Korea and originate under the terms of the U.S.-Korea FTA (KORUS) are entered into the commerce of Japan by Toyota then are rerouted to Georgetown, KY, owing to a supply chain disruption in the U.S. Are these tires eligible for KORUS duty preference upon importation into the U.S. and why?

A. No, because a Japanese company does not have standing to make a preference claim under the KORUS.

B. Yes, because the KORUS allows originating goods to enter the commerce of a third country without losing originating status as long as they are not further processed.

C. No, because the KORUS does not allow originating goods to enter the commerce of a third country without losing originating status.

D. Yes, because the KORUS allows originating goods to be further processed in another country as long as the processing is merely a finishing operation that does not result in a change in tariff classification.

E. Yes, because the KORUS allows originating goods to be further processed in another country as long as the processing is not greater than the 10% permissible under de minimis.

Correct Answer: (C).

#Trade Agreements and Programs
#Korea
#Harmonized Tariff Schedule of the United States (HTSUS) and Classification
#HTSUS General Note (GN) 33
#Code of Federal Regulations (CFR) Title 19
#10.1025