Global Sourcing & Import Regulations Flashcards
7 cards from real CPP 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 Sourcing & Import Regulations flashcards as text
A Harmonized Tariff Schedule (HTS) code is used to:
Answer: Classify imported goods and determine applicable duty rates
HTS codes are standardized numerical codes that classify every imported product and are used by CBP to determine the applicable duty rate.
Which of the following best describes 'countervailing duties' (CVDs)?
Answer: Duties applied to offset foreign government subsidies given to exporters
Countervailing duties are imposed to neutralize subsidies provided by a foreign government to its exporters, which would otherwise give them an unfair price advantage.
The Foreign Corrupt Practices Act (FCPA) is most relevant to global sourcing because it:
Answer: Prohibits U.S. companies from bribing foreign government officials to gain business advantages
The FCPA makes it illegal for U.S. companies and persons to bribe foreign government officials to obtain or retain business contracts.
What is a 'First Sale' valuation method for customs purposes?
Answer: Using the earliest transaction price in the supply chain as the customs value
First Sale valuation uses the price paid in the first sale of goods (e.g., manufacturer to middleman) rather than the last sale price, which can result in lower customs duties.
Which program allows pre-approved low-risk importers to receive expedited customs processing in the United States?
Answer: Customs-Trade Partnership Against Terrorism (C-TPAT)
C-TPAT is a voluntary CBP program where importers who meet security standards gain expedited processing and fewer inspections at the border.
Anti-dumping duties (ADD) are imposed when foreign goods are:
Answer: Sold in the U.S. at less than fair value, harming domestic producers
Anti-dumping duties are levied when imported goods are priced below fair market value (often below cost), injuring or threatening to injure U.S. domestic industry.
In global procurement, a 'currency hedge' is most useful for:
Answer: Locking in exchange rates to protect against unfavorable currency fluctuations
A currency hedge uses financial instruments (like forward contracts or options) to fix an exchange rate in advance, protecting the buyer from adverse currency movements.