Question 1

The European Union's CE marking on a product indicates that the product has been manufactured in the European Community.

Accepted Answer

The CE marking on a product is not an indication of where the product was manufactured. Rather, it indicates that the product meets certain safety, health, and environmental protection requirements for sale within the European Economic Area (EEA). The product may have been manufactured anywhere in the world, as long as it meets these requirements.

Question 2

The General Agreement on Trade in Services has increased the international harmonization in health and safety standards.

Accepted Answer

The General Agreement on Trade in Services (GATS) is a trade agreement that aims to liberalize the trade of services between countries. While it does have provisions for countries to maintain health and safety standards, it does not increase international harmonization of these standards. In fact, countries have the right to set their own standards as long as they do not discriminate against foreign service providers.

Question 3

All U.S. companies are required to obtain a general license before starting export activities.

Accepted Answer

While many U.S. companies do require licenses before engaging in export activities (especially for certain types of products or to certain destinations), not all do. Some exports may be covered by exemptions or general authorizations. However, it is important for companies to understand the regulations and determine whether their planned export activities require a license.

Question 4

All of the following are basic types of laws that regulate the importation of goods except:

Accepted Answer

Country of origin is not a type of law but a factor that can affect how laws, such as duty assessments and marking requirements, apply to imported goods. It determines where a product comes from but itself is not a regulatory law.

Question 5

All of the following are fundamental factors used by countries to determine the customs duties to be paid for importing goods except:

Accepted Answer

All countries use the factors of country of origin, classification, and valuation to determine customs duties. Markings are important for labeling and identification purposes, but they are not a fundamental factor in determining customs duties.

Question 6

The uniform classification system adopted by most countries to classify goods in international trade is:

Accepted Answer

The uniform classification system adopted by most countries to classify goods in international trade is the Harmonized Tariff Schedule (HTS), which is a standardized system of names and numbers for classifying traded products. The HTS allows governments to levy taxes and duties on imported goods and regulate the movement of goods across borders. The Harmonized Commodity Description and Coding System (HS) is another commonly used system that is based on the HTS and is used to classify goods for statistical purposes. However, the HTS is the more widely recognized and commonly used system for international trade.

Question 7

Foreign goods placed into which of the following are exempt from duties until officially entered into a country's stream of commerce:

Accepted Answer

Foreign goods placed in free trade zones, bonded warehouses, and free ports are exempt from duties until they are officially entered into a country's stream of commerce. These areas allow for the storage, handling, or manufacturing of goods without immediate imposition of customs duties.

Question 8

A binding ruling by the Customs Service refers to:

Accepted Answer

A binding ruling by the Customs Service refers to an advanced determination of a goods dutiable status. It provides importers with certainty regarding the classification and duty rates that will be applied to their goods upon importation. This allows importers to accurately calculate the cost of importing their goods and make informed business decisions.

Question 9

Duties assessed on the value of a good are known as:

Accepted Answer

Ad Valorem duties are assessed as a percentage of the value of the good. Specific duties, on the other hand, are assessed as a fixed amount per unit of the good. Compound duties are a combination of both ad valorem and specific duties. Transformation duties do not exist as a recognized category of duties.

Question 10

When an importer's goods do not fit into a neat category within the Harmonized tariff schedule, she should first consult the:

Accepted Answer

The General Rules of Interpretation provide guidelines for determining the appropriate classification of goods when they do not easily fit into existing categories within the Harmonized tariff schedule. The other options, such as the International Trade Commission, World Customs Organization, and World Trade Organization, may provide additional information on trade and tariffs, but they do not specifically address the task of classifying goods within the tariff schedule.

Question 11

Section 9802 of the HTS provides for:

Accepted Answer

Section 9802 of the HTS provides for a partial exemption from tariff duties for items temporarily exported for assembly and then returned to the United States. This provision is meant to encourage U.S. manufacturers to engage in certain production processes, without incurring the full cost of tariffs on all imported components.

Question 12

The court that has jurisdiction over any civil matters against the U.S. arising out of Federal laws governing import transactions is the:

Accepted Answer

The Court of International Trade has jurisdiction over civil matters arising out of Federal laws governing import transactions.

Question 13

In U.S. v. Haggar Apparel Company, the Supreme Court held that:

Accepted Answer

In U.S. v. Haggar Apparel Company, the Supreme Court held that if the Customs Service makes a reasonable interpretation and implementation of an ambiguous statutory provision, it must be given judicial deference. This decision established the Chevron deference framework, which is now widely used in administrative law to determine the level of deference owed to administrative agency decisions. The other options presented are incorrect or incomplete statements.

Question 14

The customs valuation of imported goods is based upon those goods:

Accepted Answer

The customs valuation of imported goods is based upon the transaction value, which is the price actually paid or payable for the goods when sold for export to the country of importation.

Question 15

The country of origin of an imported good is determined by:
I. Where a good was grown, mined, produced or manufactured
II. Whether there has been a substantial transformation of the good in another country

Accepted Answer

The country of origin of an imported good is determined by both where the good was grown, mined, produced, or manufactured as well as whether there has been a substantial transformation of the good in another country. This means that both I and II are necessary to determine the country of origin. Therefore, the best choice is C - both I and II.

Question 16

Country of origin provides the customs service with information that determines all of the following except:

Accepted Answer

The country of origin is used to determine trade preferences, antidumping duties, quota restrictions, and duty rates, but it does not determine the tariff classification of an import. Tariff classification is determined by the nature of the product itself, not its country of origin.

Question 17

Deductive value is one method of determining the dutiable value of goods in which an importer is allowed to deduct certain costs including all of the following except:

Accepted Answer

Packing costs are not typically deductible under the deductive value method for determining dutiable value.

Question 18

A form of tax relief in which a lawfully collected customs duty is refunded or remitted wholly or in part because of the particular use made of the commodity on which the duty was collected is known as:

Accepted Answer

Drawback is a form of tax relief in which customs duty is refunded or remitted because of the particular use made of the commodity on which the duty was collected. It is often used to encourage certain types of exports or to promote domestic industries. Setback, Use relief, and Rollback are not recognized terms for this type of tax relief.

Question 19

The European Union primarily uses which of the following tests to determine a products country of origin status:

Accepted Answer

The answer of The European Union primarily uses which of...

Question 20

The Customs Modernization Act changed customs law by:

Accepted Answer

The Customs Modernization Act shifted the legal responsibility of classifying goods from the Customs Service to customs brokers and required the importer to implement a proper record keeping system. It also implemented a new Automated Export System, but this was not a change to customs law, rather it was a new system for facilitating exports. Therefore, the best choice is D, as it includes the correct changes to customs law that were brought about by the Customs Modernization Act.

Quiz 5: International National Trade Regulation