CES Export Documentation & Compliance 3

Question 1

Under a Letter of Credit, which party is responsible for ensuring that all presented documents strictly comply with the L/C terms?

Accepted Answer

The issuing bank

Answer

The issuing bank (and confirming bank if any) is responsible for examining documents to ensure strict compliance with L/C terms before authorizing payment.

Question 2

Which U.S. government agency issues licenses for items on the U.S. Munitions List (USML)?

Accepted Answer

Directorate of Defense Trade Controls (DDTC)

Answer

The Directorate of Defense Trade Controls (DDTC) within the State Department issues export licenses for defense articles and services controlled under ITAR.

Question 3

What does the term 'deemed export' refer to under U.S. export control law?

Accepted Answer

Releasing controlled technology to a foreign national within the U.S.

Answer

A deemed export is the release of controlled technology or source code to a foreign national in the United States, which is regulated as if the technology were exported to that person's home country.

Question 4

Which INCOTERM 2020 rule obligates the seller to deliver goods cleared for import, with all duties paid, at the named destination?

Accepted Answer

DDP (Delivered Duty Paid)

Answer

DDP (Delivered Duty Paid) places maximum obligation on the seller, who must deliver goods cleared for import with all duties and taxes paid at the named destination.

Question 5

A Certificate of Origin issued under USMCA must certify that goods originate in which region to qualify for preferential tariff treatment?

Accepted Answer

The United States, Canada, or Mexico

Answer

Under USMCA, a Certificate of Origin must certify that the goods originate in the United States, Canada, or Mexico to qualify for preferential tariff rates.

(CES) Certified Export Specialist Practice Test

(CES) Certified Export Specialist Practice Test

CES Export Documentation & Compliance 3