Supply Chain and Logistics Global Logistics and Trade Compliance 2

Question 1

What is the C-TPAT program?

Accepted Answer

Customs-Trade Partnership Against Terrorism — a US CBP supply chain security program

Answer

Customs Tariff Processing and Trading system

Answer

Container Tracking and Port Access Terminal

Answer

Commercial Transport Passenger and Freight Tax

Question 2

What is a letter of credit (LC) in international trade?

Accepted Answer

A bank-issued payment guarantee that ensures sellers are paid when they meet specified documentary conditions

Answer

A government export subsidy

Answer

A duty-free import authorization

Answer

A supplier credit check report

Question 3

What does the US Customs drawback program allow importers to do?

Accepted Answer

Recover duties paid on imported goods that are subsequently exported or used in exported products

Answer

Delay duty payment by 90 days

Answer

Import goods duty-free under a blanket order

Answer

Reduce assessed duties through a tariff classification appeal

Question 4

What is INCOTERMS 2020?

Accepted Answer

Internationally recognized trade terms published by the ICC that define buyer and seller responsibilities in international transactions

Answer

A US customs tariff schedule effective in 2020

Answer

A UN framework for anti-dumping measures

Answer

A global shipping container standardization agreement

Question 5

What is ocean freight demurrage and detention in international shipping?

Accepted Answer

Demurrage is charged for holding containers at the port; detention is charged for holding containers off-port beyond free time

Answer

Charges for cargo damaged at sea and associated legal proceedings

Answer

Port storage fees and carrier rebooking penalties

Answer

Overage charges for exceeding vessel weight limits

Question 6

What is a country of origin determination?

Accepted Answer

Establishing the country where a product was manufactured or substantially transformed for customs and trade purposes

Answer

Identifying where a product's trademark is registered

Answer

Verifying where a supplier is headquartered

Answer

Determining which currency to use on an invoice