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.
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The Answer is: C
Citation: The HTSUS General Note 33(c)(iii)(B) and 19 CFR 10.1025(a)(2) both require that an originating good remain under customs control in the territory of a non-Party.
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