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Customs and Trade Compliance Quiz

Total questions: 21

Worksheet time: 11mins

Name
Class
Date
1.

The liability incurred by a warehouse bond remains active unless the goods entered into a bonded warehouse have been:

a)

Exported or deemed exported

b)

Withdrawn for supplies to a vessel or aircraft international traffic

c)

Destroyed under Customs supervision

d)

Withdrawn for consumption within the U.S. after payment of duty

e)

All of the above

2.

Which of the following is not included in the criteria for 'direct delivery' to an FTZ?

a)

Goods are not restricted to a type which requires CBP examination or documentation review before or upon arrival at the FTZ, for example, quota/visa goods

b)

Application is made using CBP Form 7501

c)

Goods to be admitted to the FTZ and the operations to be conducted in the FTZ are known well in advance, are predictable and stable over the long term, and are relatively fixed in variety by the nature of the business conducted at the site

d)

The operator is the owner or purchaser of the goods

3.

What is the minimum TIB liability?

a)

$50

b)

$100

c)

$1,000

d)

Double the duties

4.

Privileged Foreign Status is given to goods to determine the duty rate after goods have been manipulated or further manufactured.

a)

True

b)

False

5.

Payment of duties to a customs broker relieves the importer of liability if the customs broker does not pay the duties to CBP.

a)

True

b)

False

6.

Goods entered under Zone-Restricted Status may be manipulated, manufactured, processed, or assembled in an FTZ.

a)

True

b)

False

7.

Goods brought into a Foreign Trade Zone are not subject to Customs entry procedures.

a)

True

b)

False

8.

An "inverted tariff" is a situation where the tariffs on merchandise admitted to the zone in its condition at the time admitted to the zone products are lower than the tariffs on finished products themselves.

a)

True

b)

False

9.

When must proof of export be submitted to Customs?

a)

One year from the date of importation

b)

Three years from the date of entry

c)

No later than 30 days after the TIB expiration

d)

10 days prior to export

10.

When an importer chooses to have his FTZ goods classified for tariff purposes as what it is at the time it enters into the FTZ, rather than as what those goods can become after being manipulated or manufactured, this status is referred to as:

a)

Privileged Foreign Status

b)

Zone Restricted Status

c)

Non-Privileged Foreign Status

d)

Domestic Status

11.

The operator of an FTZ is responsible for which of the following actions?

a)

Allowing Customs access to the zone

b)

Safekeeping of merchandise

c)

Providing safeguards and security within the zone

d)

Maintaining records of goods in the zone

e)

All of the above

12.

For which of the following are bonded warehouses not generally used?

a)

Merchandise undergoing examination by CBP

b)

Goods that have not been released by CBP

c)

Automobiles that have cleared CBP

d)

General order merchandise

13.

Most Federal Laws do not apply to cargo stored in Foreign Trade Zones because these zones are considered outside of the customs territory of the United States.

a)

True

b)

False

14.

U.S. quota restrictions apply to merchandise admitted to Foreign Trade Zones.

a)

True

b)

False

15.

(a)   is an electronic payment option that allows ABI filers to pay customs fees, duties, and taxes through an electronic transaction.

16.

The HMF (Harbor Maintenance Fee) is an ad valorem fee assessed on the value of commercial cargo loaded on or unloaded from a commercial vessel at ports covered by the Water Resources Act of 1986. The HMF is (a)   percent of the value of the cargo and is applied to imported goods as well as certain domestic movements of cargo.

17.

Which of the following statements is not an advantage of using an FTZ?

a)

No duties are paid on merchandise exported from an FTZ

b)

Federal laws don’t apply within an FTZ

18.

Entry under Temporary Importation Bond (TIB) is a customs procedure that allows, under specific terms and conditions, the duty-free entry of certain goods for a limited amount of time. Goods entered under a TIB must be either exported or destroyed, usually within:

a)

30 days

b)

60 days

c)

90 days

d)

One year

19.

Which of the following is not a requirement for U.S. manufactured goods to enter the U.S. under the duty-free provisions for returning goods of U.S. origin under the tariff heading 9801.00.10?

a)

The goods must not have been the subject of a drawback claim

b)

The goods must be returned to the United States within six months from their date of export

c)

The goods must not have advanced in value or improved in condition while abroad

d)

For goods valued at over $2,500, a declaration by the foreign shipper that includes the date upon which the goods were exported from the United States

20.

Where would you find a complete list of all the records required by law and regulation?

a)

19 USC 1401

b)

19 USC 1509

c)

19 USC 1514

d)

19 USC 1641

21.

In accordance with the provisions of 9802.00.80, the valuation of the “fabricated U.S. components” is based upon the following cost:

a)

DDB the port of foreign importation

b)

FOB the U.S. port of exportation

c)

CIF the U.S. port of exportation

d)

Domestic value