Supply Chain and Logistics Global Logistics and Trade Compliance

Question 1

What is a customs broker?

Accepted Answer

A licensed professional who facilitates the import and export of goods by handling customs clearance on behalf of businesses

Answer

A government customs official

Answer

An ocean freight carrier agent

Answer

A freight insurance underwriter

Question 2

What is the Harmonized System (HS) code?

Accepted Answer

An internationally standardized numerical code used to classify traded products for customs and tariff purposes

Answer

A US-only tariff classification system

Answer

A carrier tracking number format

Answer

A container size classification system

Question 3

What is an importer of record (IOR)?

Accepted Answer

The entity legally responsible for ensuring compliance with import regulations and paying applicable duties

Answer

The company that physically receives imported goods

Answer

The customs broker filing the entry

Answer

The shipping carrier named on the bill of lading

Question 4

What does AMS stand for in US import operations?

Accepted Answer

Automated Manifest System

Answer

Automated Merchandise System

Answer

Advanced Maritime Schedule

Answer

Annual Module Summary

Question 5

What is a free trade zone (FTZ) in the United States?

Accepted Answer

A designated area where goods can be imported, stored, and processed with deferred or reduced customs duties

Answer

A domestic area exempt from all sales taxes

Answer

A port open exclusively to government cargo

Answer

A tariff-free zone between US states

Question 6

What is export controls compliance?

Accepted Answer

Ensuring that exports of controlled goods, technology, and information comply with US government regulations

Answer

Managing outbound freight costs

Answer

Verifying that exported containers are properly sealed

Answer

Controlling the quality of exported products