OJT WEBINAR - DAY 8

Which one among the following choices is the best

definition for “Free Trade Area”?

• It is exclusively a tariff-cutting agreement among contracting parties

  aiming to liberalize tariffs on all goods traded between them.

• It is a regional area established by contracting parties wherein there is

  a free flow of trade resulting from the liberalization of import tariffs.

• It is an area established through multilateral negotiations between

  countries with the objective of liberalizing tariffs and eliminating all

  trade barriers to promote freer flow of trade between them.

• It is a type of trade bloc comprising of countries that have agreed to

  eliminate tariffs, quotas and other barriers to trade and to increase

  trade of goods and services with each other.

Which one among the following choices is not a

requirement to be satisfied in order to be eligible for

the preferential tariff under the ACFTA?

• The product should be classified in the NT list of both

  participating countries

• The product should be originating under the ROO requirements

  of the ACFTA

• The shipment should have a duly issued CO Form “E”

• As per the ACFTA’s Reciprocity Rule, the product should be classified under the ST list of the exporting participant with a tariff rate above 10% and classified under the NT list of the importing participant

Which one among the following statements is erroneous in

relation to ASEAN FTAs with dialogue partners?

• A product imported into the Philippines from Indonesia and covered with a

  CO Form “E”

• A product of China with ST rate of 10% can avail of tariff preference by virtue

  of the tariff reciprocity principle under ACFTA when it is imported into the

  Philippines where the product is classified under its NT list.

• One of the requirements for an imported product to avail of tariff preference under the AJCEP is for it to be accompanied with CO Form AJ issued by the competent government authority of the exporting participant.

• A product of China with ST rate of 8% exported to the Philippines where the product is also classified under its ST list with rate of 10%, can still avail of the tariff preference granted under the Reciprocity Rule of the ACFTA Agreement.

Under the Reciprocity Rule of the ACFTA Agreement, which

one among the following conditions is invalid under the Rule?

• The product to be imported is in the NT list of the Philippines

  and in the ST list of the exporting FTA partner

• That the product’s ST rate in the exporting FTA partner should

  be 10% or below

• The applied rate is the rate that is higher between the exporting FTA partner’s ST rate and the Philippines NT rate

• That the applied rate under the Reciprocity Rule should not be

  lower than the importing FTA partner’s MFN rate.

Under which one of the following conditions can the

Reciprocity Rule be applied under the ACFTA Agreement?

• The product is in the NT list of the exporter and in the ST list of

  the importer with ST rate of 10%

• The product is in the NT list of both trading partners at NT rate of

  10% or below

• The product is in the ST list of both the exporter and importer

  with ST rate of 10% or below

• The product is in the ST list of the exporter at 7% ST rate and in

  the NT list of the importer at 5% NT rate and 10% MFN rate

Aside from China in which dialog partners below is the FTA includes the tariff reciprocity rule?

• Korea

• India

• Japan

• Hongkong

In order for an originating China product to be eligible under the Tariff Reciprocity Rule of the ACFTA, what should be the product’s tariff rate?

• The product should have an ST rate of 10% or

  below at the importing party

• China NT rate of 10% or below

• The importer must have the product under its ST list

• China ST rate of 10% or below

Philippine participation in all Free Trade

Agreements is in pursuance of which one of the

CMTA provisions below?

• Flexible Clause (Sec. 1608)

• Classification Ruling (Sec. 1100)

• General Rules for Interpretation (Sec. 1610)

• Promotion of Foreign Trade (Sec. 1609)

Which one of the following choices is the latest

concluded ASEAN FTA with dialog partner?

• PH-EFTA FTA

• AHKFTA

• ATIGA

• PJEPA

A product from China with ST and MFN rate of

7% was exported to the Philippines which

categorized the product under NT list, and

tariffs are ACFTA 3% and MFN 10%. What will

be the tariff rate applicable?

• China ST rate of 7%

• China MFN 7%

• Philippine NT 3%

• Philippine MFN 10%