CE CE Customs & Tariff Classification 2

Question 1

What is the difference between a specific tariff and a compound tariff?

Accepted Answer

A specific tariff is a fixed amount per unit; a compound tariff combines a fixed amount per unit plus an ad valorem percentage

Answer

A specific tariff applies to one country; a compound tariff applies to all countries

Answer

A specific tariff is lower than an ad valorem; a compound tariff is higher

Answer

A specific tariff applies to goods; a compound tariff applies to services

Question 2

What is customs valuation and which method does U.S. Customs use as the primary basis for determining dutiable value?

Accepted Answer

Transaction value—the price actually paid or payable for imported goods in an arm's-length sale

Answer

Manufacturer's suggested retail price (MSRP)

Answer

Free on Board (FOB) export value plus 10%

Answer

World market average price published by WTO

Question 3

What is a tariff-rate quota (TRQ) and how does it affect U.S. exporters selling into foreign markets?

Accepted Answer

A system where a lower tariff rate applies up to a set import quantity, with a higher rate for imports above that threshold

Answer

A complete ban on imports above a certain quantity

Answer

A tax rebate system for domestic manufacturers

Answer

A quota on how many tariff codes a product can have

Question 4

What is 'first-sale valuation' and how can it benefit a U.S. importer?

Accepted Answer

Valuing goods at the price of the first arm's-length sale in the chain (manufacturer to middleman) rather than the final sale, potentially lowering duties

Answer

Valuing goods at the retail price to increase declared value

Answer

Using the first invoice in the file regardless of accuracy

Answer

Applying the duty rate from the first year the product was imported

Question 5

What does CBP's Automated Commercial Environment (ACE) system do for importers and exporters?

Accepted Answer

It is the U.S. government's single-window system for submitting and processing import/export declarations and trade data

Answer

It calculates shipping costs for ocean freight

Answer

It issues export licenses for controlled goods

Answer

It manages foreign trade zone (FTZ) applications

Question 6

What is the purpose of a C-TPAT (Customs-Trade Partnership Against Terrorism) certification for U.S. exporters?

Accepted Answer

It is a voluntary security program where vetted companies receive expedited customs processing and fewer inspections as trusted traders

Answer

It is a mandatory export license for military goods

Answer

It certifies that goods meet country-of-origin marking requirements

Answer

It is an import duty exemption program