Practice Test Geeks(CPP) Certified Purchasing Professional Practice Test
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Global Sourcing & Import Regulations Flashcards

7 cards from real CPP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Global Sourcing & Import Regulations flashcards as text

  1. A Foreign Trade Zone (FTZ) provides which key advantage for an importer?

    Answer: Ability to manufacture or store goods with duty deferred until they enter U.S. commerce

    In an FTZ, goods can be received, stored, manipulated, or manufactured with duty payment deferred until the goods are formally entered into U.S. commerce.

  2. When evaluating a new overseas supplier, which social compliance standard is most commonly used to assess labor practices?

    Answer: SA8000 (Social Accountability 8000)

    SA8000 is the leading international certification standard for evaluating and improving social accountability, including child labor, forced labor, and worker rights.

  3. Which document serves as the primary contract of carriage between the shipper and an ocean carrier?

    Answer: Bill of lading

    The bill of lading is the legal contract between the shipper and carrier, a receipt for the cargo, and a document of title for the goods being shipped.

  4. The Generalized System of Preferences (GSP) benefits U.S. importers by:

    Answer: Providing duty-free entry for certain goods from designated developing countries

    GSP is a U.S. trade program that grants duty-free treatment to eligible products imported from designated beneficiary developing countries.

  5. What is 'transshipment' in the context of import compliance, and why is it a concern?

    Answer: Routing goods through a third country to disguise their true origin and evade duties or sanctions

    Illegal transshipment involves routing goods through an intermediate country to falsely claim a different origin, which is customs fraud used to evade tariffs, quotas, or sanctions.

  6. Under the Dodd-Frank Act, U.S. public companies that manufacture products must disclose their use of which category of materials?

    Answer: Conflict minerals (tin, tungsten, tantalum, gold) from the DRC region

    Section 1502 of Dodd-Frank requires SEC-reporting companies to disclose whether their products contain conflict minerals (3TG) sourced from the Democratic Republic of Congo.

  7. A purchasing professional receives a shipment detained by CBP for a 'focused assessment.' This most likely means:

    Answer: CBP is conducting a comprehensive audit of the importer's trade compliance practices

    A CBP focused assessment is an intensive audit of an importer's internal controls and trade compliance procedures, not just a single shipment review.