CATO Associate Regulatory Compliance Flashcards

Which of the following best describes an 'antidumping duty' in US trade law?

Answer: A duty imposed when foreign goods are sold in the US below fair market value, harming domestic industry

Antidumping duties are assessed when imported merchandise is sold at less than fair value (LTFV) in the US, causing material injury to a domestic industry.

Under the Harmonized Tariff Schedule of the United States (HTSUS), what does the 'General Rate of Duty' column apply to?

Answer: Goods imported from countries with Most Favored Nation (MFN) / Normal Trade Relations (NTR) status

The General (Column 1) rate applies to goods from countries that have been granted Most Favored Nation or Normal Trade Relations status with the United States.

A customs broker discovers that a client incorrectly classified an entry that was liquidated two years ago, resulting in unpaid duties. What is the standard statute of limitations for CBP to assess a duty deficiency?

Answer: 4 years from the date of entry

Under 19 USC 1514, CBP generally has four years from the date of entry to reliquidate and assess additional duties.

Under the Export Administration Regulations (EAR), what is the significance of the 'de minimis' rule?

Answer: It allows foreign-made items incorporating a small percentage of US-controlled content to be re-exported without a US license in some cases

The EAR de minimis rule allows foreign-made items incorporating 25% or less (10% for certain countries) of controlled US content to be re-exported without a US license under certain conditions.

Which regulatory body must grant a license before a US company exports items controlled for national security reasons on the US Munitions List (USML)?

Answer: The Directorate of Defense Trade Controls (DDTC)

The Directorate of Defense Trade Controls (DDTC) within the State Department administers the International Traffic in Arms Regulations (ITAR) and licenses USML items.

What is the purpose of a 'first sale' valuation methodology in US customs?

Answer: To value goods at the earliest transaction price in a multi-tier supply chain, potentially lowering dutiable value

First sale valuation allows importers to use the transaction price between the manufacturer and the middleman (rather than the middleman and the US importer) as the customs value, which can reduce duty liability.

Under 19 CFR Part 163, how long must an importer retain records related to customs transactions?

Answer: 5 years from the date of entry

19 CFR 163.4 requires importers to retain entry records for five years from the date of entry of the merchandise.