CE International Shipping & Logistics Management 3 — Questions and Answers
Question 1: What is the role of a Customs Broker in US export and import transactions?
- To negotiate freight rates with carriers
- To provide export financing
- To prepare and file customs documentation on behalf of importers/exporters (Correct answer)
- To issue certificates of origin
Correct answer: To prepare and file customs documentation on behalf of importers/exporters
A licensed customs broker is authorized to prepare and file US Customs documentation, classify goods, and interact with CBP on behalf of clients.
Question 2: Which US government agency must exporters file the Electronic Export Information (EEI) with through the Automated Export System (AES)?
- US Census Bureau (Correct answer)
- Department of Commerce
- US Customs and Border Protection
- Federal Maritime Commission
Correct answer: US Census Bureau
The EEI is filed through AES with the US Census Bureau, which uses the data for trade statistics, though CBP and BIS also use the information.
Question 3: What is demurrage in international shipping?
- A discount offered by carriers for large volume shipments
- Charges assessed for keeping a container beyond the allowed free time at a terminal (Correct answer)
- A fee for expedited customs clearance
- Insurance coverage for delayed shipments
Correct answer: Charges assessed for keeping a container beyond the allowed free time at a terminal
Demurrage is a penalty charge assessed by the carrier when a shipper or consignee fails to pick up or return a container within the agreed free time period.
Question 4: A shipper sends hazardous materials by ocean. Which international code governs the safe transport of these goods?
- IATA Dangerous Goods Regulations
- IMDG Code (International Maritime Dangerous Goods) (Correct answer)
- ADR Regulations
- CFR Title 40
Correct answer: IMDG Code (International Maritime Dangerous Goods)
The IMDG Code, published by the IMO, establishes international standards for the safe transport of hazardous materials by sea.
Question 5: What is the difference between 'port of loading' and 'port of discharge' on a bill of lading?
- They are interchangeable terms for the same location
- Port of loading is where cargo is received; port of discharge is where cargo is unloaded from the vessel (Correct answer)
- Port of loading is the final destination; port of discharge is an intermediate stop
- Port of loading applies to air freight; port of discharge applies to ocean freight
Correct answer: Port of loading is where cargo is received; port of discharge is where cargo is unloaded from the vessel
The port of loading is where goods are loaded onto the vessel, while the port of discharge is the destination port where goods are unloaded from the vessel.
Question 6: What does a 'clean' bill of lading indicate?
- The cargo has passed customs inspection
- The carrier received the goods in apparent good order without noted exceptions (Correct answer)
- All freight charges have been prepaid
- The shipment contains no hazardous materials
Correct answer: The carrier received the goods in apparent good order without noted exceptions
A clean bill of lading means the carrier received the goods in apparent good order and condition, with no notations about damage or discrepancies.
Question 7: Which shipping term means the seller delivers goods to a named terminal at the destination port, with import clearance the buyer's responsibility?
- DDP (Delivered Duty Paid)
- DAT (Delivered at Terminal) / DPU (Correct answer)
- CIP (Carriage and Insurance Paid)
- CPT (Carriage Paid To)
Correct answer: DAT (Delivered at Terminal) / DPU
Under DAT/DPU (Delivered at Place Unloaded), the seller delivers goods unloaded at the named terminal, but import clearance and duties remain the buyer's obligation.
CE International Shipping & Logistics Management 3
What is the role of a Customs Broker in US export and import transactions?