CCA CATO Associate Regulatory Compliance 2 — Questions and Answers
Question 1: Under CBP regulations, what is the maximum time an importer has to file a formal entry after goods arrive at a US port?
- 10 working days
- 15 calendar days (Correct answer)
- 30 calendar days
- 5 working days
Correct answer: 15 calendar days
CBP regulations require that a formal entry be filed within 15 calendar days of the goods arriving at a US port of entry.
Question 2: Which US government agency administers the Foreign Corrupt Practices Act (FCPA) as it relates to trade compliance?
- CBP and ICE jointly
- The Department of Justice and the SEC (Correct answer)
- The Bureau of Industry and Security (BIS)
- The Office of Foreign Assets Control (OFAC)
Correct answer: The Department of Justice and the SEC
The FCPA is jointly enforced by the Department of Justice (criminal violations) and the Securities and Exchange Commission (civil violations).
Question 3: A company receives goods under a Temporary Importation under Bond (TIB). What is the standard period allowed before the goods must be re-exported or destroyed?
- 6 months, extendable to 1 year
- 1 year, extendable to 3 years (Correct answer)
- 3 years, extendable to 5 years
- 90 days, extendable to 180 days
Correct answer: 1 year, extendable to 3 years
TIB entries are valid for one year and may be extended by CBP for up to a total of three years.
Question 4: Under US export control regulations, which document is required when exporting controlled dual-use items to most destinations?
- A Shipper's Export Declaration (SED)
- An Export Administration Regulations (EAR) license or license exception (Correct answer)
- An International Import Certificate
- A Destination Control Statement only
Correct answer: An Export Administration Regulations (EAR) license or license exception
Controlled dual-use items classified under the EAR require either a valid export license or a qualifying license exception before export.
Question 5: What is the primary purpose of a Customs-Trade Partnership Against Terrorism (C-TPAT) certification?
- To qualify for duty-free treatment under free trade agreements
- To establish supply chain security standards in exchange for expedited CBP processing (Correct answer)
- To obtain an importer-specific bond waiver
- To certify that goods meet US product safety standards
Correct answer: To establish supply chain security standards in exchange for expedited CBP processing
C-TPAT is a voluntary government-business initiative that establishes supply chain security standards in exchange for reduced examinations and expedited processing.
Question 6: Under 19 CFR Part 111, which of the following is a licensed customs broker's primary obligation to CBP?
- To guarantee payment of all duties on behalf of the importer
- To exercise responsible supervision and control over the customs business it conducts (Correct answer)
- To maintain a physical office at every US port where entries are filed
- To obtain a separate license for each district where business is transacted
Correct answer: To exercise responsible supervision and control over the customs business it conducts
19 CFR 111.28 requires that a licensed customs broker exercise responsible supervision and control over the customs business conducted in its name.
Question 7: When must an Importer Security Filing (ISF 10+2) be transmitted to CBP for ocean shipments?
- At least 24 hours before vessel departure from the foreign port (Correct answer)
- No later than 24 hours after the bill of lading is issued
- At least 24 hours before the vessel's arrival at a US port
- Upon arrival of the cargo at the first US port of entry
Correct answer: At least 24 hours before vessel departure from the foreign port
The ISF 10+2 must be filed no later than 24 hours before the cargo is laden aboard the vessel at the foreign port of departure.
CCA CATO Associate Regulatory Compliance 2
Under CBP regulations, what is the maximum time an importer has to file a formal entry after goods arrive at a US port?