CES Export Controls & Sanctions Compliance 3

Question 1

Which country is subject to one of the most comprehensive US trade embargoes, prohibiting nearly all commercial transactions without specific OFAC authorization?

Accepted Answer

Cuba

Answer

China

Answer

Russia

Answer

Vietnam

Question 2

What is the US Munitions List (USML)?

Accepted Answer

The list of defense articles, defense services, and related technical data controlled under ITAR

Answer

A catalog of surplus military equipment available for allied nation purchase

Answer

A BIS-maintained list of weapons prohibited from commercial export

Answer

A directory of pre-approved foreign military end-users

Question 3

An effective export compliance program (ECP) must include which combination of elements?

Accepted Answer

Management commitment, risk assessment, written policies and procedures, training, and internal auditing

Answer

Written procedures and annual license filings submitted to BIS

Answer

Customer credit verification and payment terms documentation only

Answer

Government liaison activities and quarterly compliance officer reports only

Question 4

Under US export control rules, what is a 'reexport'?

Accepted Answer

The export of a US-origin item (or qualifying foreign item) from one foreign country to another

Answer

The return of a US-origin item back to the United States from abroad

Answer

Reselling a previously imported foreign product within the domestic US market

Answer

Shipping the same item to the same foreign buyer on a second occasion

Question 5

What is the primary purpose of a post-shipment end-use verification conducted by BIS?

Accepted Answer

To confirm that exported items are being used for their authorized purpose and have not been diverted

Answer

To collect import duties on behalf of the destination country's customs authority

Answer

To verify that all export documentation was correctly completed prior to shipment

Answer

To ensure the importer has received and acknowledged delivery of the goods

Question 6

Under the EAR's 'de minimis' rule, foreign-made products are generally NOT subject to US reexport controls when:

Accepted Answer

US-controlled content comprises less than a specified threshold percentage of the foreign item's total value

Answer

The product was manufactured more than five years ago

Answer

The foreign country has a bilateral trade agreement with the United States

Answer

The item was originally exported under a license exception rather than a validated license

Question 7

Which action best demonstrates 'know your customer' (KYC) due diligence in export compliance?

Accepted Answer

Screening the customer against the Consolidated Screening List, verifying end-use via a questionnaire, and documenting the findings

Answer

Accepting the buyer's verbal assurance that the item will not be reexported

Answer

Filing Electronic Export Information in AES before shipment as the sole compliance step

Answer

Relying on the freight forwarder to perform all required export compliance checks