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
Which WTO agreement specifically governs the use of anti-dumping measures by member countries?
Answer: Anti-Dumping Agreement (ADA) / Article VI of GATT
The WTO Anti-Dumping Agreement (implementing Article VI of GATT 1994) sets the rules under which countries may impose anti-dumping duties on imported goods sold below normal value.
In export finance, what is the primary function of the U.S. Export-Import Bank (EXIM)?
Answer: To fill financing gaps by providing loans, guarantees, and insurance that support U.S. exports when private financing is unavailable
EXIM Bank supports U.S. exports by providing government-backed financing tools—loans, loan guarantees, and export credit insurance—when private lenders are unwilling or unable to finance the deal.
What is the significance of an 'end-user certificate' (EUC) in export transactions?
Answer: It is a document from the foreign buyer or government certifying the ultimate end use and user of controlled goods, preventing unauthorized re-export
An end-user certificate is a critical compliance document that identifies the true final recipient and use of controlled items, forming part of the due-diligence chain for export licenses.
A U.S. exporter discovers that a foreign distributor re-exported controlled goods to a prohibited country without authorization. Under EAR, the U.S. exporter could face liability under which principle?
Answer: The 'know your customer' and know your transaction obligations that impose downstream re-export responsibility
EAR's 'know your customer' rules require exporters to investigate red flags and can impose liability if the exporter knew or had reason to know of an unauthorized re-export.
Which U.S. regulation requires exporters of most food, drugs, and medical devices to register and submit prior notice before their products enter the United States or are exported?
Answer: FDA Food Safety Modernization Act (FSMA) and Prior Notice rules
FSMA and FDA's Prior Notice regulations require advance notification for food shipments, and FSMA imposes supply chain controls on food exporters and importers.
What does the term 'country of origin' determine for an exported product in international trade?
Answer: The product's eligibility for preferential tariffs, applicable trade remedies like anti-dumping duties, and required markings in the destination country
Country of origin determines preferential tariff eligibility under FTAs, applicability of trade remedies (anti-dumping, countervailing duties), import quotas, and mandatory country-of-origin marking requirements.
Under the Foreign Trade Regulations (FTR), which party is responsible for filing the Electronic Export Information (EEI) in a standard (non-routed) export transaction?
Answer: The U.S. Principal Party in Interest (USPPI), typically the seller or exporter
In a standard export transaction, the USPPI—usually the U.S. seller/exporter—is legally responsible for filing the EEI through AES, though they may authorize a freight forwarder to file on their behalf.