Global Logistics and Trade Compliance Flashcards
6 cards from real Supply Chain and Logistics practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Global Logistics and Trade Compliance flashcards as text
What is the C-TPAT program?
Answer: Customs-Trade Partnership Against Terrorism — a US CBP supply chain security program
C-TPAT is a voluntary US CBP partnership program where businesses adopt supply chain security standards in exchange for expedited customs processing.
What is a letter of credit (LC) in international trade?
Answer: A bank-issued payment guarantee that ensures sellers are paid when they meet specified documentary conditions
A letter of credit is a financial instrument issued by a buyer's bank guaranteeing payment to the seller upon presentation of compliant shipping documents.
What does the US Customs drawback program allow importers to do?
Answer: Recover duties paid on imported goods that are subsequently exported or used in exported products
Customs drawback allows businesses to claim refunds of up to 99% of duties paid on imported materials that are later exported.
What is INCOTERMS 2020?
Answer: Internationally recognized trade terms published by the ICC that define buyer and seller responsibilities in international transactions
Incoterms 2020 are 11 standardized ICC rules defining cost, risk, and responsibility split between buyers and sellers in international contracts.
What is ocean freight demurrage and detention in international shipping?
Answer: Demurrage is charged for holding containers at the port; detention is charged for holding containers off-port beyond free time
Demurrage applies when containers remain at the port terminal past free days; detention applies when containers are held outside the port at importers' or exporters' facilities.
What is a country of origin determination?
Answer: Establishing the country where a product was manufactured or substantially transformed for customs and trade purposes
Country of origin determines which tariff rates, trade agreements, and import restrictions apply to a specific product entering a country.