CPL International Trade & Customs Compliance 2

Question 1

Under the Harmonized Tariff Schedule (HTS), what is the primary basis used to classify imported goods?

Accepted Answer

Physical description and composition of the goods

Answer

HTS classification is based on the physical characteristics and composition of goods, following General Rules of Interpretation.

Question 2

A U.S. importer receives goods with a First Sale valuation that is lower than the final transaction price. What is the primary benefit of using First Sale valuation?

Accepted Answer

It reduces the dutiable value, lowering import duties

Answer

First Sale valuation allows importers to declare the earlier factory price rather than the higher resale price, reducing the customs duty base.

Question 3

Which U.S. government agency is primarily responsible for enforcing export controls on dual-use items?

Accepted Answer

Bureau of Industry and Security (BIS)

Answer

BIS administers the Export Administration Regulations (EAR), which govern dual-use items that have both commercial and military applications.

Question 4

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

Accepted Answer

To provide advance cargo information to CBP before ocean shipments arrive

Answer

ISF requires importers to submit 10 data elements (plus 2 from carriers) to CBP at least 24 hours before cargo is loaded at the foreign port.

Question 5

Under INCOTERMS 2020, which term places maximum responsibility on the seller, including delivery to the buyer's named destination with import duties paid?

Accepted Answer

DDP (Delivered Duty Paid)

Answer

DDP requires the seller to bear all costs and risks including import duties, taxes, and customs clearance at the destination country.

(CPL) Certified Professional Logistician Practice Test

(CPL) Certified Professional Logistician Practice Test

CPL International Trade & Customs Compliance 2