Tariff Law 2 – Tariff Commission Practice Exam

What is a sunset review and when is it used?

A sunset review re-evaluates the need for a duty after a defined period to determine whether to continue, modify, or terminate the measure. A sunset review determines the initial existence of a duty. A sunset review sets a new tariff rate for all products. A sunset review is a temporary delay in enforcement.

Correct Answer:

A sunset review re-evaluates the need for a duty after a defined period to determine whether to continue, modify, or terminate the measure.

Explanation:

A sunset review is a process that re-evaluates the need for a trade remedy after a defined period to decide whether the measure should continue, be modified, or be terminated. It ensures remedies aren’t kept longer than necessary, assessing whether removing the duty would likely lead to continued or renewed injury to the domestic industry, and whether any changes in conditions warrant keeping or adjusting the measure. The other options don’t fit because a sunset review is not about establishing that a duty existed in the first place, nor about setting a new tariff rate for all products, nor about delaying enforcement.

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