CCA CATO Associate Regulatory Compliance 3

Question 1

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

Accepted Answer

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

Answer

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.

Question 2

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

Accepted Answer

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

Answer

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.

Question 3

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?

Accepted Answer

4 years from the date of entry

Answer

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

Question 4

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

Accepted 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

Answer

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.

Question 5

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

Accepted Answer

The Directorate of Defense Trade Controls (DDTC)

Answer

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

(CCA) CATO Certified Associate Practice Test

(CCA) CATO Certified Associate Practice Test

CCA CATO Associate Regulatory Compliance 3