Can the importer claim duty free treatment under the United States-Korea Free Trade Agreement (UKFTA) in the following scenario? Empty plastic water bottles are exported from the U.S. to South Korea. In South Korea, the water bottles are recycled and turned into raw materials (RPET) then reprocessed into a foam from which yoga mats are manufactured. The importer files entry under 9506.91.0030 for the yoga mats which are shipped directly from South Korea. NOTE: if any portion of an answer is false, the entire answer is false.
A) No, because UKFTA requires that merchandise be wholly obtained or produced entirely in the territory of Korea to be eligible for duty free treatment.
B) No, because the UKFTA applies to North Korea and not South Korea.
C) No, because goods classified under 9506.91.0030, HTSUS, are not eligible for duty-free treatment under UKFTA.
D) Yes, because UKFTA permits duty free claims for goods wholly obtained or produced entirely in the territory of Korea or of the United States or both and 9506.91.0030 lists the special program indicator of “KR.”
[bg_collapse view=”button-green” color=”#4a4949″ icon=”arrow” expand_text=”Show Answer and Citation” collapse_text=”Hide Answer and Citation” ]
The Answer is: D
Citation: HTSUS General Note 33
[/bg_collapse]