Shipping Lawyer International Trade and Customs Regulations 1 — Questions and Answers
Question 1: Which U.S. government agency is primarily responsible for enforcing customs laws and import regulations?
- U.S. Coast Guard
- U.S. Customs and Border Protection (CBP) (Correct answer)
- Federal Maritime Commission
- Bureau of Industry and Security
Correct answer: U.S. Customs and Border Protection (CBP)
U.S. Customs and Border Protection (CBP) enforces customs laws, collects duties, and regulates the importation of goods into the United States.
Question 2: What is an 'Importer of Record' (IOR) under U.S. customs law?
- The foreign seller of goods
- The party legally responsible for ensuring imported goods comply with U.S. laws and paying duties (Correct answer)
- The ocean carrier transporting goods
- The customs broker filing the entry
Correct answer: The party legally responsible for ensuring imported goods comply with U.S. laws and paying duties
The Importer of Record is legally responsible for ensuring imports comply with U.S. laws and regulations and for payment of applicable duties and fees.
Question 3: What is the 'Harmonized Tariff Schedule' (HTS) used for in U.S. import law?
- Scheduling vessel arrivals
- Classifying imported goods to determine applicable duty rates (Correct answer)
- Filing export declarations
- Calculating demurrage charges
Correct answer: Classifying imported goods to determine applicable duty rates
The Harmonized Tariff Schedule classifies every imported commodity under a numerical code that determines the applicable customs duty rate and trade restrictions.
Question 4: What is 'country of origin' and why is it critical in international shipping?
- The port of loading for the shipment
- The country where goods were wholly obtained or substantially transformed, affecting duties and trade measures (Correct answer)
- The carrier's home country
- The location of the letter of credit bank
Correct answer: The country where goods were wholly obtained or substantially transformed, affecting duties and trade measures
Country of origin determines the applicable tariff rate, whether preferential trade agreements apply, and whether goods are subject to trade remedies like antidumping duties.
Question 5: What U.S. export control law regulates exports of dual-use goods with both commercial and military applications?
- Arms Export Control Act (AECA)
- Export Administration Regulations (EAR) (Correct answer)
- International Emergency Economic Powers Act
- Foreign Corrupt Practices Act
Correct answer: Export Administration Regulations (EAR)
The Export Administration Regulations (EAR), administered by the Bureau of Industry and Security, controls exports of dual-use items that have both commercial and potential military uses.
Question 6: What is an 'Automated Export System' (AES) filing requirement?
- A vessel registration database
- An electronic declaration required for most U.S. exports valued over $2,500 per schedule B number (Correct answer)
- A customs bond filing system
- An import entry automation system
Correct answer: An electronic declaration required for most U.S. exports valued over $2,500 per schedule B number
AES (now part of ACE) requires exporters to electronically file Electronic Export Information (EEI) for most U.S. exports over $2,500, creating the official export record.
Shipping Lawyer International Trade and Customs Regulations 1
Which U.S. government agency is primarily responsible for enforcing customs laws and import regulations?