CATO Associate Regulatory Compliance Flashcards
7 cards from real CCA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 CATO Associate Regulatory Compliance flashcards as text
Which of the following actions constitutes 'gross negligence' under CBP's penalty statute (19 USC 1592)?
Answer: An act or omission done with actual knowledge of or wanton disregard for relevant facts and a reckless disregard for legal obligations
Under 19 USC 1592, gross negligence is defined as an act or omission that results from an indifference to or reckless disregard for relevant facts and a reckless disregard for legal obligations.
Under the Trade Agreements Act (TAA), which standard must US government procurement contracts for end products meet?
Answer: Products must be manufactured or substantially transformed in the US or a TAA-designated country
The TAA requires that products purchased under covered US government contracts be either US-made or substantially transformed in a TAA-designated country.
A shipment of goods is subject to a countervailing duty (CVD) order. What underlying condition does a CVD address?
Answer: Foreign government subsidies that provide an unfair competitive advantage to exported goods
Countervailing duties offset foreign government subsidies that give exporters an unfair price advantage in the US market.
Under OFAC regulations, what does a 'blocked' asset mean for a US person holding it?
Answer: The asset must be frozen and cannot be transferred, paid, exported, or withdrawn without OFAC authorization
Under OFAC regulations, blocking freezes the asset in place — US persons may not deal in, transfer, or otherwise move the asset without specific OFAC authorization.
Under US customs law, which of the following is NOT a valid basis for the transaction value of imported merchandise?
Answer: Domestic transportation costs from the US port to the buyer's warehouse
Domestic transportation costs incurred after arrival at the US port of entry are not included in customs transaction value, which is based on the price paid plus certain additions up to the US port of entry.
Which US regulatory requirement mandates that importers have a 'reasonable care' standard when declaring goods to CBP?
Answer: The Customs Modernization Act (Mod Act) of 1993
The Customs Modernization Act of 1993 codified the 'reasonable care' standard, requiring importers to use reasonable care in making entry and ensuring the accuracy of their declarations to CBP.
A US exporter ships encryption software to a foreign university for research. Under EAR License Exception ENC, what is typically required before the first export?
Answer: A one-time classification request submitted to BIS, and in some cases an annual self-classification report
License Exception ENC generally requires a one-time product classification review submitted to BIS and, for certain encryption items, annual self-classification reporting.