Customs Procedures & Risk Management Flashcards

Under the U.S. '24-hour rule,' carriers must transmit ocean cargo manifest data when?

Answer: 24 hours before cargo is loaded at the foreign port

The 24-hour rule requires advance manifest data before lading abroad to enable pre-loading risk screening.

In risk assessment, the level of a risk is most commonly determined by combining which two factors?

Answer: Likelihood and impact

Risk level reflects how probable an event is and how severe its consequences would be.

A U.S. importer discovers it undervalued past entries. Which action can significantly reduce potential penalties under 19 U.S.C. 1592?

Answer: Filing a prior disclosure before CBP begins a formal investigation

A valid prior disclosure limits 1592 penalties, often to interest on unpaid duties for negligence.

How many digits of the Harmonized System code are internationally standardized across WCO members?

Answer: 6

The first six HS digits are harmonized; countries add further digits for national tariff lines.

What is the primary method of customs valuation under the WTO Valuation Agreement?

Answer: Transaction value

Transaction value, the price actually paid or payable, is used whenever possible.

What is a key feature of a customs bonded warehouse?

Answer: Goods can be stored with duty payment deferred until withdrawal for consumption

Bonded warehouses allow duty-deferred storage, with duties due when goods are withdrawn for domestic consumption.

Which CBP system uses data analytics and rules to target high-risk cargo for examination?

Answer: Automated Targeting System (ATS)

ATS evaluates manifest, ISF and entry data against risk rules to flag shipments for review.