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True / False
1. In the United States v. Golden Ship Trading case, Wu, the owner, was found not liable because she exercised due
care in verifying the merchandise was manufactured in the Dominican Republic.
a. True
b. False
2. The Mod Act shifted to the importer greater responsibility to comply with all customs laws and regulations.
a. True
b. False
3. Under the Mod Act, negligent record keeping can be punished by fines up to a maximum of $5,000, or 20 percent of
the value of the goods.
a. True
b. False
4. The U.S. Bureau of Customs and Border Protection is the agency charged with assessing and collecting tariffs and
administering duty-free zones.
a. True
b. False
5. The owner, purchaser, or consignee of goods or a customs broker with a written power of attorney must enter goods
delivered to a U.S. port of entry within five days of the arrive of the goods.
a. True
b. False
6. The rule of informed compliance requires the customs broker to be responsible for compliance with customs laws
and handling all documentation with reasonable care.
a. True
b. False
7. In 1997, U.S. Customs adopted a "checklist" that provides an absolute legal standard of reasonable care to be used
by importers.
a. True
b. False
8. Imported goods may be entered into the U.S. by the purchaser, consignee, or customs broker.
a. True
b. False
9. Upon entering goods for use or consumption, all necessary documentation and duties, fees and taxes must be paid
within five days.
a. True
b. False
10. Liquidation of goods must occur within three months of entry and cannot be extended.
a. True
b. False
11. For smaller commercial shipments that are mailed into the U.S., the U.S. Postal Service letter carrier acts as an
agent for the U.S. Bureau of Customs and Border Protection for purposes of collecting import duties.
a. True
b. False
12. Customs rules and duty assessment rates are uniform throughout NAFTA.
a. True
b. False
13. The U.S. and Canada have both adopted the Harmonized Commodity Description and Coding System.
a. True
b. False
14. Under the Harmonized Tariff Schedule, all members of the WTO charge the same rate of duty upon the import of
the same or similar products.
a. True
b. False
15. In interpreting the Harmonized Tariff Schedule, the courts will look at the common and commercial meaning of the
items being imported.
a. True
b. False
16. For purposes of assessing duties to be paid, the transaction value is the dutiable value when all import-related costs
have been included in the purchase price.
a. True
b. False
17. Where an imported item could be classified under several different provisions of the Harmonized Code, it will
generally fall under that provision which describes the item most specifically.
a. True
b. False
18. Textile imports are classified according to the fibers that constitute the chief weight of the article.
a. True
b. False
19. If an importer provides tools, dies, or molds to a foreign supplier free of charge to be used in the manufacturer of the
imported items, the value of these assists will not be included in transaction value.
a. True
b. False
20. Where the transaction value of merchandise cannot be determined, the U.S. Bureau of Customs and Border
Protection will look to the dutiable value of identical merchandise imported under similar circumstances.
a. True
b. False
21. U.S. imports that originate in a normal trade relations country and are shipped to a GSP country must undergo a dual
transformation in the GSP country in order for the GSP country to be considered the country of origin.
a. True
b. False
22. The country of origin is always determined by the WTO definition where the article is grown, produced, or
manufactured.
a. True
b. False
23. The purpose of country-of-origin marking requirements is to give consumers in the marketplace the information they
need about the products they purchase.
a. True
b. False
24. An imported item substantially transformed in the United States by the importer before being sold to the ultimate
purchaser need not be marked with a foreign country of origin.
a. True
b. False
25. Assume Article X is manufactured in Country Y. It is shipped to Country Z where it is substantially transformed
before being imported into the United States for resale. For the purposes of imposing import duties under U.S. law,
Article X will be considered a product of Country Z.
a. True
b. False
26. A full refund of duties paid is made when imported goods that do not conform to specifications are returned to U.S.
customs within 90 days and returned to the seller under U.S. customs supervision.
a. True
b. False
27. There are preference provisions in U.S. tariff laws designed to stimulate the economic progress of less developed
nations..
a. True
b. False
28. The purpose of trade preferences is to provide assistance for countries whose economies are developing.
a. True
b. False
29. Duty-free status is granted to Caribbean nations, including Cuba under the guidelines of both CBERA and the GSP.
a. True
b. False
30. Caribbean nations that do not cooperate with the U.S. in the enforcement of U.S. drug laws do not qualify for
assistance under the Caribbean Basin Economic Recovery Act.
a. True
b. False
31. Foreign Trade Zones make it possible for U.S. manufacturers to export goods without having to pay any duties.
a. True
b. False
32. Foreign Trade Zones are free ports provided by the import trading companies to stimulate international trade by
allowing the receipt of imports to be duty free.
a. True
b. False
33. Goods held in a Foreign Trade Zone must be removed within one year of their original import date.
a. True
b. False
34. Shipments to be entered must be accompanied by commercial invoices written in English and in the native language
of the country of origin to assure that there are no discrepancies.
a. True
b. False
35. In the event Customs discovers that the information provided by the importer was fraudulent at the time of
liquidation, the case can be reopened within five (5) years.
a. True
b. False
36. In the event the importer files a protest and Customs denies the protest an appeal can be filed with a federal court of
appeals.
a. True
b. False
37. Customs fraud requires that the importer committed a fraudulent violation by providing information and
documentation that is beyond a reasonable doubt untrue.
a. True
b. False
38. In an action to collect a customs penalty, the U.S. Treasury Department is the plaintiff and need only prove that the
importer was negligent in providing misinformation.
a. True
b. False
Multiple Choice
39. To determine the dutiable status of goods, it is necessary to know their classification, country of origin, and details
pertaining to:
a. Perishable/non-perishable status.
b. Partially or fully manufactured goods.
c. Value.
d. Raw materials to be used in production.
