Deck 9: International Commercial Documents

Question 1

Export quotas can be used to control scarce resources or prices of products for which a country has a monopoly.

Answer 1

True

Question 2

A Certificate of Origin must be signed by the importer's chamber of commerce.

Answer 2

False

Question 3

Export quotas can be used to control scarce resources or prices of products for which an exporting country faces heavy competition.

Answer 3

False

Question 4

A packing list always accompanies a shipment.

Question 5

The Shipper's Export Declaration is required for export parcels valued at more than $500 that are sent through the postal system.

Question 6

A consular invoice is a regular commercial invoice printed on stationery provided by a country and visa-ed by its consulate in the exporter's country.

Question 7

An import license is usually provided by an independent laboratory or independent inspection company attesting to composition of certain shipped products.

Question 8

A manifest is an internal document of the shipping company and is not examined by government entities.

Question 9

A uniform bill of lading is not used for inland transportation.

Question 10

Bolero does not use a shared EDI network,but is proprietary.

Question 11

The invoice that corresponds to an actual shipment is called the commercial invoice.

Question 12

The main billing document in a shipment is the pro forma invoice.

Question 13

A consular invoice can be considered a trade barrier.

Question 14

Among other things,tariff rates are determined based on the shipment's weight.

Question 15

A specialized commercial invoice is considered a trade barrier.

Question 16

Requirements for an export license can be used by a country to control the outflow of certain goods.

Question 17

A Certificate of Manufacture is similar to a Certificate of Origin.

Question 18

A country may use import documents to enact a protectionist policy.

Question 19

Bolero is an international document transmission system that offers payment capability.

Question 20

Most End-Use Certificates are provided by the governments of exporting countries.

Question 21

EDI is

A) Electronic Data Interchange.
B) an electronic exchange of documents from computer to computer.
C) based upon a legal agreement between sender and recipient.
D) All of the above
E) None of the above

Question 22

Besides a contract and a receipt for goods,an ocean bill of lading is

A) a certificate of title.
B) a substitute for a Certificate of Insurance.
C) an Incoterm.
D) All of the above
E) None of the above

Question 23

In 1996,the _____ was revised to a U.S.export policy stating that "everything is authorized unless it is specifically prohibited."

A) Destination Control Statement
B) EAR
C) pro forma invoice
D) Shipper's Export Declaration
E) None of the above

Question 24

An SED is

A) an Incoterm.
B) a proprietary commercial electronic data interchange.
C) a manifest.
D) a certificate of title.
E) None of the above

Question 25

Which of the following regulate shipments of dangerous goods?

A) the SWIFT
B) the Shipper's Export Declaration
C) the International Maritime Dangerous Goods Code
D) All of the above
E) None of the above

Question 26

A government will use a(n)_____ to attempt to control the export of national treasures or antiques.

A) export license
B) consular invoice
C) Uniform Commercial Code
D) duty
E) None of the above

Question 27

The sentence "This merchandise licensed by U.S.for ultimate destination [country].Diversion contrary to U.S.Law prohibited" is

A) a Commerce Control List.
B) the Fenwick Anti-Terrorist Amendment of the Export Administration Act.
C) the "List of Specially Designated Nationals."
D) the Denied Person's List.
E) None of the above

Question 28

Which of the following pieces of information does an international commercial invoice contain?

A) Incoterms
B) a precise description of the product
C) terms of payment
D) All of the above
E) None of the above

Question 29

The commercial invoice

A) is sent ahead of the shipment.
B) is the same thing as a letter of credit.
C) replaces the need for an export license.
D) All of the above
E) None of the above

Question 30

In most cases,an intermodal bill of lading

A) is illegal.
B) is an Incoterm
C) is a straight bill of lading.
D) is regulated by the International Maritime Dangerous Goods Code.
E) None of the above

Question 31

Incoterms determine if a Certificate of Insurance is

A) required on the air waybill.
B) the responsibility of the exporter or importer.
C) a receipt for the goods.
D) a certificate of title.
E) part of the packing list.

Question 32

An air waybill

A) is always straight.
B) is also used in ocean transportation.
C) serves as an individual validated export license.
D) can serve as a shipper's export declaration.
E) None of the above

Question 33

Export taxes

A) protect importers from fraudulent exporters.
B) are certified by the exporter's chamber of commerce.
C) may be used when the shipped goods are minerals in short supply, or when the product has been heavily subsidized by the government.
D) All of the above
E) None of the above

Question 34

A careful preparation of all of the documents by the exporter helps the importer tremendously when it is time to clear Customs.

Question 35

The pro forma invoice

A) is identical to the commercial invoice.
B) must be written with extreme care to avoid discrepancies between the letter of credit and the commercial invoice.
C) does not need an expiration date.
D) All of the above
E) None of the above

Question 36

An experienced exporter knows that the U.S.government almost always checks the paperwork that the exporter provides to the importer.

Question 37

Even when validated export licenses are not required,exporters are responsible for determining if there are "red flags" in a transaction,such as

A) a cash sale for a product generally purchased on credit terms.
B) the product is sold to a company that does not appear to be in the exporter's main line of business.
C) the importer appears on the BIS's "List of Specially Designated Nationals."
D) All of the above
E) None of the above

Question 38

The United States export policy is mostly concerned about

A) keeping some military technologies away from some countries.
B) stopping exports of non-essential items to countries that cannot afford them.
C) regulating exports to countries that have strong import regulations.
D) All of the above
E) None of the above

Question 39

A product not on the Commerce Control List,or whose Export Control Classification Number does not call for an export license,is classified as

A) NLR.
B) SED.
C) BIS.
D) UCC.
E) None of the above

Question 40

Among the reasons for import documents are

A) to keep out shoddy goods.
B) to determine appropriate tariff classifications.
C) to help determine import goods values.
D) All of the above
E) None of the above

Question 41

If the ____________________ is not filed in time with U.S.Bureau of Customs and Border Protection,the shipment will not be allowed to leave the port of departure.

Question 42

A commercial invoice favored by countries attempting to accurately forecast needs for foreign currency is called a(n)____________________ invoice.

Question 43

A Phyto-Sanitary Certificate is for ____________________ products and foodstuffs.

Question 44

A detailed Shipper's Letter of Instruction can be critical in ____________________ shipments.

Question 45

A document sometimes requested by the importer that is signed by an independent third party attesting to authenticity and accuracy of a shipment is a Certificate of ____________________.

Question 46

An express authorization by a given country's government to export a specific product before it is shipped is called a(n)____________________ license.

Question 47

For an American exporter,one way to avoid delays in the port of departure in the United States is to

A) make sure that the Shipper's Export Declaration has been filed on time.
B) make sure that the number of original invoices and bills of lading is at least five.
C) make sure that the invoice has been visa-ed by the consulate of the importing country.
D) make sure that the packing list has been written in the language of the importing country.
E) None of the above

Question 48

A bill of ____________________ is a fundamental international shipping document in ocean transportation.

Question 49

A(n)____________________ license is designed to prevent the import of non-essential or overly luxurious products in developing countries with a short supply of foreign currency.

Question 50

For an exporter,one way to avoid having to pay for amendments to a letter of credit is to

A) prepare the packing list particularly carefully.
B) make sure that the Shipper's Export Declaration has been filed electronically.
C) prepare the pro forma invoice particularly carefully
D) All of the above
E) None of the above

Question 51

A Certificate of Certification

A) defines the technical characteristics of a good before it can be imported.
B) may be written by an independent company.
C) may be written by a trade association.
D) All of the above
E) None of the above

Question 52

One of the requirements for a U.S.shipper's export declaration is for exports valued at more than ____________________ per item category.

Question 53

Failure to have the correct number of original invoices and the proper paperwork can delay customs' ____________________ in the importing country.

Question 54

The invoice that corresponds to an actual shipment is called the ____________________ invoice.

Question 55

The United States requires a(n)____________________ Export Declaration.

Question 56

End-Use Certificates

A) are provided by the governments of the exporting country.
B) certify that the product is going to be used for a legitimate purpose.
C) must be signed by the exporter's chamber of commerce.
D) All of the above
E) None of the above.