CPP Global Sourcing & Import Regulations 3

Question 1

A Harmonized Tariff Schedule (HTS) code is used to:

Accepted Answer

Classify imported goods and determine applicable duty rates

Answer

HTS codes are standardized numerical codes that classify every imported product and are used by CBP to determine the applicable duty rate.

Question 2

Which of the following best describes 'countervailing duties' (CVDs)?

Accepted Answer

Duties applied to offset foreign government subsidies given to exporters

Answer

Countervailing duties are imposed to neutralize subsidies provided by a foreign government to its exporters, which would otherwise give them an unfair price advantage.

Question 3

The Foreign Corrupt Practices Act (FCPA) is most relevant to global sourcing because it:

Accepted Answer

Prohibits U.S. companies from bribing foreign government officials to gain business advantages

Answer

The FCPA makes it illegal for U.S. companies and persons to bribe foreign government officials to obtain or retain business contracts.

Question 4

What is a 'First Sale' valuation method for customs purposes?

Accepted Answer

Using the earliest transaction price in the supply chain as the customs value

Answer

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.

Question 5

Which program allows pre-approved low-risk importers to receive expedited customs processing in the United States?

Accepted Answer

Customs-Trade Partnership Against Terrorism (C-TPAT)

Answer

C-TPAT is a voluntary CBP program where importers who meet security standards gain expedited processing and fewer inspections at the border.

(CPP) Certified Purchasing Professional Practice Test

(CPP) Certified Purchasing Professional Practice Test

CPP Global Sourcing & Import Regulations 3