CCP Customs & Compliance Management 3 — Questions and Answers
Question 1: In CargoWise, what is the role of the 'Tariff Maintenance' register within Customs configuration?
- To store freight rate agreements
- To maintain HTS/HS code descriptions, duty rates, and trade agreement eligibility (Correct answer)
- To record warehouse locations
- To configure user permissions
Correct answer: To maintain HTS/HS code descriptions, duty rates, and trade agreement eligibility
Tariff Maintenance stores the HTS/HS code database including duty rates, unit of measure, and preferential trade agreement flags used during declaration line-item entry.
Question 2: A shipment arrives with a discrepancy between the declared value and the invoice value. Which CargoWise document records the corrected customs value after post-entry amendment?
- Post Entry Amendment (PEA) / Protest (Correct answer)
- A new Commercial Invoice
- A Warehouse Receipt
- An Air Waybill correction
Correct answer: Post Entry Amendment (PEA) / Protest
A Post Entry Amendment (PEA) is filed in CargoWise to correct errors on a previously accepted customs entry, including value discrepancies.
Question 3: Which INCOTERM, when used as the basis of customs value, requires the importer to include CIF charges in the declared value under US CBP rules?
- EXW
- FOB (Correct answer)
- CIF
- DAP
Correct answer: FOB
Under US CBP rules, customs value is based on the transaction value using FOB (Free On Board) price, not including insurance and freight unlike many other countries.
Question 4: In CargoWise Customs, what does the 'Quota' field on a tariff line item manage?
- The maximum number of shipments per month
- Absolute or tariff-rate quota eligibility for specific HTS codes (Correct answer)
- The broker's credit limit
- Container weight restrictions
Correct answer: Absolute or tariff-rate quota eligibility for specific HTS codes
The Quota field on a tariff line item in CargoWise tracks absolute or tariff-rate quota (TRQ) applicability, allowing the system to flag or calculate reduced duty rates within quota limits.
Question 5: How does CargoWise handle Anti-Dumping Duty (ADD) and Countervailing Duty (CVD) on a customs entry?
- They are automatically waived for trusted importers
- They are calculated as separate tariff lines using specific case numbers (ADD/CVD case codes) (Correct answer)
- They are included in the standard HTS duty rate
- They must be paid externally and are not tracked in CargoWise
Correct answer: They are calculated as separate tariff lines using specific case numbers (ADD/CVD case codes)
ADD and CVD are entered as separate tariff lines in CargoWise using the specific CBP case numbers, with their own duty rates applied in addition to regular duties.
Question 6: Which CargoWise status indicates that a customs entry has been released by CBP but the entry summary has not yet been filed?
- Cleared
- Released – Entry Summary Pending (Correct answer)
- Lodged
- Exam Required
Correct answer: Released – Entry Summary Pending
In CargoWise, a 'Released – Entry Summary Pending' status means CBP has released the goods but the 10-day entry summary filing deadline has not yet been met.
Question 7: What is the function of the 'Ruling' register in CargoWise's Customs compliance tools?
- To store binding rulings and classification decisions for consistent tariff application (Correct answer)
- To approve or deny duty drawback claims
- To record inspection results from customs exams
- To manage carrier liability limits
Correct answer: To store binding rulings and classification decisions for consistent tariff application
The Ruling register stores CBP binding rulings and internal classification decisions so the same tariff code is consistently applied when the same product is declared.
CCP Customs & Compliance Management 3
In CargoWise, what is the role of the 'Tariff Maintenance' register within Customs configuration?