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CCS Certification > M5 & M6 > Flashcards

M5 & M6 Flashcards

1
Q

Article 4.17 of the CUSMA provides rules for origin determination in these circumstances:

A

means when a set is classified under GIR3, a 10% De Minimis rule is allowed.

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2
Q

one of four origin criteria must be satisfied for goods to originate under the CUSMA;

A

Find the 4 criteria

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3
Q

the CUSMA product specific rules of origin require

A

a tariff shift;
a regional value content requirement; or
both a tariff shift and a regional value content requirement

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4
Q

the De Minimis rule allows goods to qualify as originating, as long as

A

the non-originating parts and materials that do not undergo the required tariff shift, are not more than a certain percentage;

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5
Q

What are fungible goods

A

fungible goods are goods that are interchangeable for commercial purposes and have essentially identical properties;

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6
Q

CUSMA 4.14

A

under certain conditions, accessories, spare parts, tools or instructional or other information materials that are delivered with goods and form part of the good’s standard accessories, spare parts, or tools, are considered originating if the good originates;

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7
Q

What are the terms of transshipment?

A
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8
Q

the term packaging, for purposes of the CUSMA is

A

used when referring to retail sale, while packing is used for shipping purposes;

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9
Q

Last country of production

A

if US and Mexico parts and materials are included in a finished product, the country of last production determines if UST or MXT applies.

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10
Q

CUSMA Data elements in what Annex?

A

minimum data elements, which are set out in Annex 5-A of Chapter 5 of the CUSMA.

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11
Q

CUSMA Data elements in what Annex?

A

minimum data elements, which are set out in Annex 5-A of Chapter 5 of the CUSMA.

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12
Q

D Memorandum 11-4-1

A

Casual goods benefit from UST treatment if marked or not marked another country

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13
Q

You should recall from Part 4, Module 4.5 that there are seven classes of goods that require origin marking, and that Appendix B of D11-3-1 lists 21 categories of goods that are exempt from origin marking, regardless of their origin. LEARN MORE ABOUT THIS

A
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14
Q

What is Tariff Preference Level (TPL)

A

is a CUSMA mechanism that provides for duty at the CUSMA preferential rate for particular goods up to a specified quantity, and at a higher rate of duty after that quantity is exceeded;

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15
Q

for automotive goods when calculating the RVC, only the net cost method may be used;

A

True

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16
Q

What is the De minmus rule

A

the De Minimis rule allows goods to qualify as originating as long as the non-originating parts and materials that do not undergo the required tariff shift are not more than a certain percentage;

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17
Q

The CUSMA Article 7.8 applies to both commercial and casual goods

A

True

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18
Q

Casual goods acquired in the US, which bear no marking of origin, are deemed to have originated in the US and are entitled to the benefit of the UST.

A

True

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19
Q

What is the role of the CBSA for sima investigations?

A

The CBSA determines whether there is evidence of dumping or subsidizing

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20
Q

What is the role of the CITTl
For SIMA investigations

A

CITT’s responsibility to determine whether dumped or subsidized imports have caused injury, or are threatening to cause material injury, to Canada producers of “like goods”.

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21
Q

Once a complaint has been received CBSA has how many days to decide if the injury has been properly documented?

A

21 days to decide if the complaint is properly documented. If it is not, the CBSA will ask for any missing details to be provided in writing.

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22
Q

Once the complaint has been properly completed: how Mandy says does CBSA have to decide to investigate?

A

the CBSA has 30 days to make a decision as to whether an investigation should be started. If an investigation is warranted, a notice announcing the initiation of an investigation is published in the Canada Gazette, Part 1.

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23
Q

Within 90 days of the opening of the investigation: CBsA must

A

the CBSA is usually in a position to either end the investigation or to issue a preliminary determination (a decision) of dumping or subsidizing. Though rarely used, extenuating circumstances may cause a delay, in which case the CBSA may take up to an additional 45 days to render a preliminary determination

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24
Q

What Notes are not legally binding

A

Explanatory Notes
Statistical Notes

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25
Q

Re-Investigations (SIMA)

A

to update normal values (and export prices or amounts of subsidy) of goods subject to a finding of injury by the CITT.

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26
Q

Normal Value Review

A

Process similar to a re-investigation, with the exception that each review is conducted with respect to a single exporter only.

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27
Q

Expiry Reviews

A

SIMA review to determine if a determination should be rescinded or continued for another 5 years. These are also known as Sunset Reviews.

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28
Q

Anti-circumvention investigations

A

Investigation into whether the circumvention of a Tribunal order or finding is occurring.

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29
Q

Scope Proceedings

A
  • request a ruling from the CBSA to determine whether certain goods are in fact subject goods.
    formal process - service standard for issuing scope ruling is 120 days
    -Binding on the CBSA for subsequent decision to the goods
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30
Q

What 3 types of duty under SIMA

A

Provisional
Anti - Dumping
Countervailing

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31
Q

When does dumping occur?

A

dumping occurs when goods are sold to importers in Canada at prices that are lower than the selling price of comparable goods in the country of export or when goods are sold to Canada at unprofitable prices;

32
Q

When does subsidizing occur?

A

subsidizing occurs when goods imported into Canada benefit from government financial assistance in the exporting country;

33
Q

What are provisional duties based on?

A

provisional duties are based on estimates and only apply during the investigation period;

34
Q

What is needed to begin a dumping investigation?

A

to begin an investigation into dumping, a Canadian industry or a manufacturer in that sector, that believes their business is suffering as a result of dumped or subsidized goods must make a formal complaint to the CBSA;

35
Q

What is needed in order to file a complaint of dumping?

A

n order to file a compliant, the complaint must represent at least 25 per cent of Canadian production of the goods and the number of producers supporting the claim must be greater than the number of producers opposed;

36
Q

Where is the investigation if warranted and then statement of reason announced?

A

Canada Gazette Part 1

37
Q

How many days does the CITT have to make a verdict (finding) of dumping?

A

120 days
the CITT is required to make a finding (a verdict) within 120 days from the date of receipt of the preliminary determination, and has another 15 days to issue a statement of reasons explaining its finding;

38
Q
A
39
Q

What is an alternative to a full investigation of dumping/complaint?

A

an undertaking is a potential alternative to a full investigation by the CBSA and the CITT and involves a commitment by the exporters or the foreign governments to change their pricing or subsidizing practices in order to prevent possible injury to Canadian industry;

40
Q

What does a scope ruling advise?

A

if an order, finding, or undertaking applies to particular goods.

41
Q

What are Subject Goods?

A

SIMA duties are applicable, the goods are very specifically defined by the CBSA. The product definitions are listed in the Measures in Force, and are referred to as “subject goods”, meaning the goods are subject to the SIMA duties.

42
Q

Where is the Subject goods aka measures in force posted?

A

The Measures in Force list is posted online in D Memorandum D14-1-7 and has its own page on the CBSA website called Measures in Force https://cbsa-asfc.gc.ca/sima-lmsi/mif-mev/menu-eng.html

43
Q
A
44
Q

What is the list of details a subject good is broken down to ?

A

subject goods are broken down into the following subsections:
product information;
investigative Information;
tariff classification numbers;
duty liability (anti-dumping duties if applicable);
duty liability (countervailing duties if applicable);
disclosure of normal values and amounts of subsidy;
information required on customs documents;
appeal decisions relating to subjectivity;
email for duty assessment questions;
CBSA Reference Number(s); and
CITT Reference Number(s)

45
Q

How is anti-dumping calculated?

A

Anti-dumping duty is calculated as a set percentage of the export price of the goods
-The amount of anti-dumping duty owing is the export price multiplied by the percentage referenced in the Ministerial specification.

46
Q

How is Countervailing Duty calculated?

A

Countervailing duty is a set amount, usually on a per unit basis (i.e. per kilogram, per ton, per bushel, etc).
- Example
Refined sugar originating or exported from the European Union has a countervailing duty equal to 24.39 Euros per 100 kg.

Kilograms: 25,000
Set price: 24.39 Euros
25,000 kg / 100 kg = 250 kg

250 kg X 24.39 Euros = 6,097.50 Euros

Total countervailing duty owing: 6,097.50 Euros (this has to be converted to Canadian dollars to finish calculating the total amount owing on the accounting document).

47
Q

SIMA Duty Anti Dumping and Countervailing total?

A

. To calculate the SIMA assessment owing, you would add together any anti-dumping and countervailing amounts owed, in Canadian dollars, and enter that total amount on your accounting document.

48
Q

Is there a time limit to Anti Dumping and countervailing measures?

A

Anti-dumping and countervailing measures ordinarily lapse at the end of five years, unless a finding or order is reviewed and continued. If this is the case, the duties are collected for another five years.

49
Q

what would the total landed cost be on these goods?

Goods: Aluminum extrusions – Doors
Classification: 7610.10.00.10
Shipper: China Doors Ltd.
Country of Origin: China
Quantity: 26,782
Weight: 126,782 kg
Export Price: $7,221,766.30 USD
US exchange rate: 1.112
RMB exchange rate: 0.0056

A

$7,221,766.30 Export Price X 1.112 US Exchange Rate = $8,030,604.13 VFD

$8,030,604.13 VFD Price X 101% Anti-dumping Rate = $8,110,910.17 Antidumping

126,782 kg X 15.84 RMB = $2,008,226.88 RMB
$2,008,226.88 RMB X 0.0056 RMB Exchange Rate = $11,246.07 Countervailing

$8,110,910.17 Antidumping + $11,246.07 Countervailing = $8,122,156.24 Total SIMA duties

$8,030,604.13 VFD X 6.5% Duty Rate = $521,989.27 Duty

$8,030,604.13 VFD + $521,989.27 Duty + $8,122,156.24 SIMA = $16,674,749.64 Value for Tax

$16,674,749.64 VFT X 5% GST Rate= $833,737.48 GST

The total cost, or landed cost as it is known, for these goods is $17,508,487.12

Total cost = Export Price (or VFD) + Antidumping duties + Countervailing + Duty + GST

$8,030,604.13 + $8,110,910.17 + $11,246.07 + $521,989.27 + $833,737.48 = $17,508,487.12

50
Q

What is the 1st digit of the SIMA code represent?

A

1st digit of the 2 digit code represents the SIMA Assessment

51
Q

What is the 1st digit of the SIMA code represent?

A

1st digit of the 2 digit code represents the SIMA Assessment

52
Q

What is SIMA assessment 1?

A

Goods are specifically exempted from a CITT injury finding

53
Q

What is SIMA assessment 2?

A

Goods are subject to an undertaking

54
Q

What is SIMA assessment type 3

A

Goods are subject to provisional duty

55
Q

What is SIMA assessment type 4?

A

Goods are subject to a CITT and no SIMA duty is payable

56
Q

What is SIMA assessment type 5?

A

Goods are subject to a CITT finding and or surtax order and SIMA duties and or surtax is payable

57
Q

What is the 2nd digit represent in the SIMA code?

A

The 2nd digit represents methods of pay how it’s remitted

58
Q

what is SIMA remittance code 0

A

No liability no money owed

59
Q

What is SIMA remittance code 1

A

Cash includes credit card or debit card

60
Q

What is SIMA remittance code 3

A

security bond - for provisional duties and expedited reviews

61
Q

What is possible SIMA remittance code 50

A

For subject goods where the SIMA duty assessment is covered by a valid oic number

62
Q

What is SIMA remittance code 51

A

For subject goods covered by cash

63
Q

What is SIMA Amps penalty C004?

A
  • not true/accurate info
  • code not completed correctly 7 days or more after notified
64
Q

What is SIMA amps penalty code C223

A

Non CSA failed to provide product description after notified

65
Q

What is SIMA amps penalty code C224?

A

CSA failed to provide detailed descriptions with in specific period

66
Q

What is SIMA amps penalty code C225?

A

Importer failed to keep prescribed records for subject goods

67
Q

The CBSA, CRA and the CITT have unique roles in the SIMA process.

A

False

68
Q

SIMA findings by the CITT are final and are not subject to review by outside parties.

A

True

69
Q

What SIMA code is used when accounting for subject goods where the provisional duty assessment is covered by a SIMA bond.

A

32

70
Q

An expiry review is used to determine if a determination should be rescinded or continued for another
how many years.

A

5 years

71
Q

What SIMA code would be applicable to a shipment of machine screws with wings which were imported from China and are not subject to a finding but are in the same tariff classification as other screws that are subject to a CITT finding.

A

10

72
Q

The CITT

A

is responsible for investigating the effect of dumped goods on Canadian producers

73
Q

What SIMA code is used for goods that are not subject to anti-dumping or countervailing duty but are classified in the same tariff classification as goods that are subject to anti-dumping or countervailing duty.

A

10

74
Q

What occurs when imported goods are sold to a business or person in Canada at prices lower than those at which they are sold in the country of export or when goods are sold into Canada at unprofitable prices.

A

Dumping

75
Q

What SIMA code is used for goods covered by a price undertaking.

A

20
2= Goods are subject to an undertaking
0 = No liability (no money is owed)

76
Q

What is the amount of SIMA payable based on the following scenario and assuming that the goods are liable for the SIMA? The answer must be indicated in the following currency format: $1,234.56.

Commodity: Steel grating
Country of Origin: China
Shipper: Steel slots
Units: 6.2 metric tonne
Export Price: $76,493.15 USD
US Exchange Rate: 1.1149
CNY Exchange Rate: 0.0346

A

Step 1: Calculate the value for duty
$76,493.15 USD X 1.1149 US exchange rate = $85,282.21 VFD

Step 2: Calculate the anti-dumping duty
$85,282.21 VFD X 85% = $72,489.88 Anti-dumping

Step 3: Calculate the countervailing duty
6.2 metric tonne X 13,064 CNY = 80,996.80 CNY
80,996.80 CNY X 0.0346 CNY exchange rate = $2,802.49 Countervailing

Step 4: Calculate the SIMA duty
$72,489.88 Anti-dumping + $2,802.49 Countervailing = $75,292.37 SIMA duty

CCS Certification (26 decks)

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