Customs Procedures & Risk Management Flashcards

The WCO SAFE Framework of Standards is built on which two core pillars?

Answer: Customs-to-Customs and Customs-to-Business

SAFE rests on Customs-to-Customs network cooperation and Customs-to-Business partnerships, the latter being the basis for AEO programs.

In a standard risk management process (e.g., ISO 31000), which step directly follows risk identification?

Answer: Risk analysis

After risks are identified, they are analyzed for likelihood and consequence before being evaluated and treated.

What is the main purpose of a post-clearance audit (PCA)?

Answer: To verify compliance by examining a trader's records after goods are released

PCA lets customs release goods quickly and then verify accuracy of declarations through records review.

In a customs selectivity system, a 'green lane' result typically means what?

Answer: Release without documentary or physical examination

Green lane shipments are assessed as low risk and released without inspection.

What is a key benefit of a Mutual Recognition Arrangement (MRA) between two customs administrations?

Answer: Recognition of each other's AEO status, giving certified traders benefits in both countries

MRAs let each administration recognize the other's validated AEO members, reducing duplicate checks.

Which U.S. program is the AEO-equivalent program administered by CBP?

Answer: CTPAT

CTPAT (Customs Trade Partnership Against Terrorism) is CBP's AEO program under the SAFE Framework.

For U.S.-bound ocean cargo, when must the Importer Security Filing (ISF '10+2') generally be submitted?

Answer: 24 hours before cargo is laden on the vessel at the foreign port

ISF data is due at least 24 hours before lading at the foreign port so CBP can assess risk early.