Drawback and Duty Relief Programs Flashcards
6 cards from real CCS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Drawback and Duty Relief Programs flashcards as text
What is a US Foreign Trade Zone (FTZ) and how does it provide duty relief?
Answer: A CBP-designated area where goods may be stored or manufactured with customs duties deferred until goods enter US commerce
An FTZ is a US Customs territory area where goods can be stored, processed, or manufactured with duties deferred until the goods are formally entered for US consumption.
How does an FTZ benefit importers in an 'inverted tariff' situation?
Answer: The importer may elect to pay the lower duty rate applicable to either the components or the finished product
In inverted tariff situations where component duty rates exceed finished goods rates, FTZ users can elect to pay the lower rate on the finished product rather than the higher rate on imported components.
What is a US Customs bonded warehouse?
Answer: A CBP-approved facility where imported dutiable goods can be stored without paying duties until withdrawn for consumption
A bonded warehouse is a CBP-authorized private facility where imported goods can be stored up to 5 years with duties deferred until withdrawal for domestic consumption or re-exportation.
Under the Section 321 de minimis provision, what is the maximum value threshold for duty-free informal importation per person per day?
Answer: $800 per person per day
Under Section 321, goods valued at $800 or less per person per day may be imported duty-free without a formal customs entry, a threshold raised by TFTEA from the previous $200 limit.
What is Temporary Importation under Bond (TIB) and what is the key condition for maintaining duty-free status?
Answer: A provision allowing goods to enter duty-free for a specific purpose provided they are exported within the allowed time period
TIB allows goods to enter the US duty-free for specific purposes (trade shows, repair, testing) on condition they are exported within the allowed period, typically one year with extensions available.
What is the role of a customs broker's 'power of attorney' in the drawback filing process?
Answer: It authorizes the customs broker to file drawback claims and transact all related customs business as the importer's legal agent
A power of attorney is the legal instrument authorizing a licensed customs broker to act as the importer's agent in filing drawback claims and conducting all related customs business before CBP.