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 customs broker is a licensed agent who prepares and submits customs documentation to facilitate the clearance of imported and exported goods.

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

The HS code is a 6-digit international system maintained by the World Customs Organization for classifying goods in international trade.

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 importer of record is legally responsible for the accuracy of import documents, payment of duties, and compliance with all import regulations.

Question 4

What does AMS stand for in US import operations?

Accepted Answer

Automated Manifest System

Answer

The Automated Manifest System (AMS) requires carriers to transmit cargo manifest data to US Customs before vessel arrival.

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

US Foreign Trade Zones allow companies to defer, reduce, or eliminate customs duties on imported goods used in manufacturing or re-exported.

Supply Chain and Logistics Practice Test