Global Supply Chain Logistics Flashcards
7 cards from real CLA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Global Supply Chain Logistics flashcards as text
Which document is required by US Customs and Border Protection for all commercial imports entering the United States?
Answer: Entry Summary (CBP Form 7501)
CBP Form 7501 (Entry Summary) is the primary customs declaration document required for all commercial imports entering the US.
In international trade, what does the term 'landed cost' include?
Answer: Purchase price, freight, insurance, duties, and all other import costs
Landed cost is the total cost of a product once it has arrived at the buyer's door, including purchase price, shipping, insurance, customs duties, and handling fees.
What is the primary purpose of a Free Trade Zone (FTZ) in the United States?
Answer: To allow manipulation of goods before formal customs entry, deferring or reducing duties
FTZs allow companies to defer, reduce, or eliminate customs duties by manipulating, storing, or manufacturing goods before formal US customs entry.
Under Incoterms 2020, which term places the MAXIMUM responsibility on the seller?
Answer: DDP (Delivered Duty Paid)
DDP requires the seller to deliver goods to the named destination with all duties paid, representing maximum seller obligation.
What is the primary risk associated with single-source global supply chains?
Answer: Supply disruption vulnerability with no backup supplier
Single-source supply chains create vulnerability to complete supply disruption if the sole supplier experiences production issues, natural disasters, or political instability.
Which ocean shipping routing concept involves consolidating cargo from multiple shippers into a single container?
Answer: Less than Container Load (LCL)
LCL (Less than Container Load) consolidates shipments from multiple shippers into one container, reducing costs for smaller cargo volumes.
What does 'nearshoring' mean in global supply chain strategy?
Answer: Relocating production to nearby or neighboring countries
Nearshoring involves relocating production or sourcing to geographically close countries to reduce lead times, transportation costs, and supply chain risk.