Supply Chain and Logistics Global Logistics and Trade Compliance 1 — Questions and Answers
Question 1: What is a customs broker?
- A government customs official
- A licensed professional who facilitates the import and export of goods by handling customs clearance on behalf of businesses (Correct answer)
- An ocean freight carrier agent
- A freight insurance underwriter
Correct answer: A licensed professional who facilitates the import and export of goods by handling customs clearance on behalf of businesses
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?
- A US-only tariff classification system
- An internationally standardized numerical code used to classify traded products for customs and tariff purposes (Correct answer)
- A carrier tracking number format
- A container size classification system
Correct answer: An internationally standardized numerical code used to classify traded products for customs and tariff purposes
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)?
- The company that physically receives imported goods
- The entity legally responsible for ensuring compliance with import regulations and paying applicable duties (Correct answer)
- The customs broker filing the entry
- The shipping carrier named on the bill of lading
Correct answer: The entity legally responsible for ensuring compliance with import regulations and paying applicable duties
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?
- Automated Merchandise System
- Automated Manifest System (Correct answer)
- Advanced Maritime Schedule
- Annual Module Summary
Correct answer: Automated Manifest System
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?
- A domestic area exempt from all sales taxes
- A designated area where goods can be imported, stored, and processed with deferred or reduced customs duties (Correct answer)
- A port open exclusively to government cargo
- A tariff-free zone between US states
Correct answer: A designated area where goods can be imported, stored, and processed with deferred or reduced customs duties
US Foreign Trade Zones allow companies to defer, reduce, or eliminate customs duties on imported goods used in manufacturing or re-exported.
Question 6: What is export controls compliance?
- Managing outbound freight costs
- Ensuring that exports of controlled goods, technology, and information comply with US government regulations (Correct answer)
- Verifying that exported containers are properly sealed
- Controlling the quality of exported products
Correct answer: Ensuring that exports of controlled goods, technology, and information comply with US government regulations
Export controls regulate the transfer of dual-use goods, military items, and sensitive technologies to foreign countries or nationals.
Supply Chain and Logistics Global Logistics and Trade Compliance 1
What is a customs broker?