Regulatory & Customs Compliance Flashcards

What is the purpose of an Importer Security Filing (ISF), commonly called '10+2'?

Answer: To provide CBP with advance cargo information before ocean shipments arrive in the U.S.

The ISF requires importers to submit 10 data elements to CBP at least 24 hours before goods are loaded on a vessel bound for the U.S., enabling advance security screening.

A company holds inventory that is subject to U.S. antidumping duties. What triggers antidumping duty assessment?

Answer: Foreign goods are sold in the U.S. at less than fair market value, harming domestic industries

Antidumping duties are imposed when foreign goods are sold in the U.S. below their home market price or cost of production in a manner that injures domestic industries.

Which inventory management practice helps ensure compliance with FIFO (First-In, First-Out) requirements for perishable goods regulated by the FDA?

Answer: Date-coding inventory upon receipt and rotating stock so oldest items ship first

Date-coding and systematic stock rotation ensures perishable goods are used or sold in the order they were received, meeting FDA food safety and pharmaceutical requirements.

Under OSHA regulations, what must an inventory manager maintain for hazardous chemicals stored in the warehouse?

Answer: Safety Data Sheets (SDS) accessible to all employees who may be exposed

OSHA's Hazard Communication Standard (HazCom) requires employers to maintain SDS for all hazardous chemicals and make them readily accessible to employees.

A manufacturer wants to export goods to a country on the U.S. OFAC sanctions list. What must happen before the shipment can proceed?

Answer: The exporter must obtain a specific OFAC license authorizing the transaction

Transactions with OFAC-sanctioned countries are generally prohibited unless a specific license is obtained from OFAC authorizing the particular transaction.

What is 'tariff engineering' and is it legal under U.S. customs law?

Answer: Legally modifying a product's design or processing to qualify for a lower tariff classification

Tariff engineering is the legal practice of altering product design or manufacturing processes so that goods qualify for a more favorable HTS classification.

A U.S. company receives goods from a related foreign supplier. How should the customs value be determined?

Answer: The transaction value may be used if the relationship did not influence the price, or alternative valuation methods apply

For related-party transactions, CBP scrutinizes whether the price was influenced by the relationship; if so, alternative methods like deductive or computed value are used.