International Trade Regulations & Laws Flashcards
7 cards from real CES practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 International Trade Regulations & Laws flashcards as text
Under the Foreign Corrupt Practices Act (FCPA), which of the following payments to a foreign official is generally permitted as an exception?
Answer: Facilitating payments to expedite routine government actions
The FCPA contains a narrow exception for facilitating payments made to expedite or secure the performance of routine, non-discretionary government actions.
Which U.S. law prohibits American companies from complying with foreign boycotts not sanctioned by the United States?
Answer: Anti-Boycott provisions of the EAR
The anti-boycott provisions under the EAR (and supported by the Tax Reform Act) prohibit U.S. persons from cooperating with unsanctioned foreign boycotts, such as the Arab League boycott of Israel.
A 'routed export transaction' under EAR is one where:
Answer: The foreign buyer controls the export and selects the U.S. forwarder
In a routed export transaction, the foreign purchaser controls the export and authorizes a U.S. agent to file the EEI, shifting certain compliance responsibilities.
What is the primary purpose of the Wassenaar Arrangement in international trade?
Answer: To control exports of conventional arms and dual-use goods and technologies among member states
The Wassenaar Arrangement is a multilateral export control regime promoting transparency and responsibility in transfers of conventional arms and dual-use items.
Under U.S. export law, a 'deemed export' occurs when:
Answer: Controlled technology or source code is released to a foreign national in the United States
A deemed export is the release of controlled technology or software to a foreign national inside the U.S., which is treated as an export to that person's home country.
Which sanction program imposes the broadest restrictions, essentially prohibiting almost all U.S. trade with the targeted country?
Answer: Comprehensive country-wide OFAC embargo
A comprehensive OFAC embargo, such as those on Cuba, Iran, and North Korea, broadly prohibits virtually all trade, financial transactions, and services.
What filing requirement applies when a U.S. exporter ships goods to Canada under USMCA?
Answer: No EEI filing is required for most commercial shipments to Canada
Most commercial shipments to Canada are exempt from the EEI/AES filing requirement due to the U.S.-Canada data-sharing agreement, with certain exceptions for controlled items.