CIM Regulatory & Customs Compliance 3

Question 1

What is the primary purpose of C-TPAT (Customs-Trade Partnership Against Terrorism)?

Accepted Answer

To improve supply chain security in exchange for expedited customs processing

Answer

C-TPAT is a voluntary U.S. government-business initiative that strengthens supply chain security while offering benefits like fewer inspections and priority processing.

Question 2

Under Incoterms 2020, which term requires the seller to deliver goods to a named port with all export duties paid, but import duties are the buyer's responsibility?

Accepted Answer

FOB (Free on Board)

Answer

Under FOB, the seller is responsible for export customs clearance and loading goods onto the vessel; the buyer assumes risk and import duties from that point.

Question 3

A company exports dual-use items (goods with both commercial and military applications). Which U.S. regulation primarily governs these exports?

Accepted Answer

Export Administration Regulations (EAR)

Answer

The EAR, administered by the Bureau of Industry and Security, controls the export of dual-use commercial items that could have military or proliferation applications.

Question 4

What is the significance of a 'reasonable care' standard in U.S. customs compliance?

Accepted Answer

Importers are legally required to exercise due diligence to ensure the accuracy of their customs declarations

Answer

The Customs Modernization Act established that importers bear the legal responsibility to exercise reasonable care in all customs filings and transactions.

Question 5

An inventory manager notices that a supplier is listing undervalued prices on commercial invoices to reduce duty payments. This practice is called:

Accepted Answer

Customs fraud / undervaluation

Answer

Customs undervaluation is the fraudulent practice of declaring a lower transaction value than actually paid to reduce duty payments, which violates customs law.

(CIM) Certified Inventory Manager Practice Test

(CIM) Certified Inventory Manager Practice Test

CIM Regulatory & Customs Compliance 3