Workshop on Rules of Origin Quiz

1. 1. Which of the following is INCORRECT with regard Rule of Origin?

• a. Rules of Origin is divided into preferential rules of Origin and non-preferential rules of Origin.

• b. Preferential rules of origin determine if goods qualify for preferential treatment under contractual or autonomous trade regimes for grant of tariff preferences.

• c. Non-preferential rules of Origin is not an important because it is not required for implementing commercial policy instruments.

• d. Rules of Origin determine economic nationality of the product.

2. 2. Under a Free Trade Agreement (FTA), the Rules of Origin are used to:

• a. Determine customs penalties

• b. Identify the value of excise taxes

• c. Establish eligibility for preferential tariff treatment

• d. Determine Customs Value.

3. 3. The Wholly Obtained criterion applies to:

• a. Goods that undergo processing in two countries

• b. Goods produced entirely from domestic materials

• c. Goods assembled in whole

• d. Goods imported with a Certificate of Origin

4. 4. Which of the following is a common method to determine substantial transformation?

• a. Change in Tariff Classification (CTC)

• b. Harmonized Coding Review (HCR)

• c. Minimum Markup Rule

• d. Certification by the government officials

5. 5. In many FTAs, the de minimis rule refers to:

• a. The maximum margin of preference

• b. The minimum threshold for export volumes

• c. A tolerance level for non-originating materials

• d. A rule on minimum duties collected

6. 6. Which of the following is NOT a condition for granting preferential treatment:

• a. Originating products

• b. Territorial requirements fulfilled

• c. Proof of Origin

• d. Lower Most Favored Nation (MFN) duty rate.

7. 7. "Neutral elements" in FTA refers to:

• a. Means of production such as energy, fuel, tools, machinery, equipment and plant that are used in the manufacturing of a product, but not incorporated into the final product.

• b. Products transshipped through non-member countries.

• c. Goods that lose their origin status due to insufficient processing.

• d. Elements excluded from Customs valuation.

8. 8. The of the following method of certification is often most liberal and facilitative to the trade:

• a. Certification by Chamber of Commerce

• b. Self-certification by approved exporters or producers

• c. Fully importer or exporter-based certification

• d. Certification by Customs authorities only

9. 9. A Proof of Origin must always be verified through exporting country's Customs Authority.

10. 10. Approved exporter status allows self-certification under some FTAs.