Regulatory & Customs Compliance Flashcards
7 cards from real CIM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Regulatory & Customs Compliance flashcards as text
Which U.S. government agency is primarily responsible for enforcing customs laws and collecting import duties?
Answer: U.S. Customs and Border Protection (CBP)
U.S. Customs and Border Protection (CBP) is the primary agency responsible for enforcing customs laws and collecting duties on imported goods.
What is the purpose of a Harmonized Tariff Schedule (HTS) code in international trade?
Answer: To classify goods for customs duty assessment and trade statistics
HTS codes classify imported goods into standardized categories used to determine applicable duty rates and collect trade statistics.
A company imports components under a bonded warehouse arrangement. What key benefit does this provide?
Answer: Duties are deferred until goods are withdrawn for domestic consumption
Bonded warehouses allow importers to store goods without paying duties until the goods are released for domestic sale or consumption.
Under the Foreign Corrupt Practices Act (FCPA), which inventory-related activity would constitute a violation?
Answer: Paying a foreign customs official to expedite clearance of a shipment
The FCPA prohibits bribing foreign government officials, including customs officials, to obtain or retain business advantages.
What does 'duty drawback' allow U.S. manufacturers to do?
Answer: Recover duties paid on imported materials that are later exported in finished products
Duty drawback is a refund of up to 99% of duties paid on imported materials when those materials are incorporated into exported finished goods.
Which document serves as the primary contract between a shipper and a carrier in international freight?
Answer: Bill of Lading
The Bill of Lading is the contract of carriage between the shipper and carrier, serving as a receipt for goods and a document of title.
A U.S. importer discovers that goods were misclassified under the wrong HTS code, resulting in underpayment of duties. What is the correct course of action?
Answer: File a prior disclosure and amended entry with CBP to correct the error
Filing a prior disclosure with CBP reduces penalties significantly and is the legally required corrective action when importers discover duty underpayments.