Himalaya Clauses in bills of lading:
a. Protect the carrier for damage to cargo being transported over mountainous and
rugged terrain.
b. Protect stevedores from liability in loading and unloading ships.
c. Protect only the shipper for improper packaging of goods for shipment.
d. All of the above.
Enforcement of the U.S. export laws is the function of the:
a. U.S. Department of Commerce.
b. Office of Export Enforcement.
c. State and local police forces.
d. U.S. military.
The Due Process clause of the U.S. Constitution requires that before a company can be
brought before a court in the U.S. it must have had minimum contacts with the forum.
a. True
b. False
Under the Montreal Protocol, trade in chlorofluorocarbons is strictly controlled.
a. True
b. False
Under U.S. law, antidumping duties can be imposed where:
I. It is determined that a class of foreign merchandise is being, or likely to be, sold in the
U.S. at less than fair value, and a domestic industry is injured as a result.
II. A domestic industry needs protection to update its technology to compete with the
dumped product.
a. I only.
b. II only.
c. Both I and II.
d. Neither I nor II.
The Import-Export Clause gives power to the federal government and state
governments to tax exports and imports.
a. True
b. False
A subsidy is some advantage or favor granted by a government to its firms upon the
manufacture, production, or export of a product, and such actions are beneficial to the
international economy.
a. True
b. False
In the Bulk Aspirin from China case, the ITA decided to treat the private exporters the
same as the government- owned exporters.
a. True
b. False
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
The type of letter of credit that can be split up between many suppliers, each able to
present their own documents for payment and allowing the trader to take his profits
from the balance of the credit, is called:
a. An irrevocable credit.
b. A revolving credit.
c. Standby credit.
d. Transferable credit.
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
In the U.S., an employer may engage in employee discrimination if it is “reasonably
necessary to the normal operation of the particular business or enterprise,” a defense
known as the:
a. bona fide occupational qualification defense.
b. occupational qualification defense.
c. occupational exception defense.
d. bona fide exception defense.
Since NAFTA was signed, Mexico has reduced its average applied tariffs on U.S.
imports by slightly more than 1%.
a. True
b. False
Under Incoterms, a sale on terms “DDP” represents the minimum responsibility of the
seller and the maximum responsibility of the buyer.
a. True
b. False
The development of international law has a long history that include the customs that
have evolved into written statutes recognized by civilized nations..
a. True
b. False
Which of the following is an example of a specific or flat tariff?
a. a 15% tariff on the value of a shipment of t-shirts
b. a $10 tariff on each barrel of petroleum
c. a 20% discount on the value of peaches delivered in October, November, or
December
d. None of the above
Seller receives a letter of credit from a foreign buyer covering “1,000 standard-sized
bed pillows.” Seller’s export manager completes an invoice for “1,000 bed pillows, size
20 by 26 inches” (this is the internationally accepted standard size for pillows). Which
of the following is false:
a. If the issuing bank accepts or pays against documents, it will be liable to the account
party.
b. The issuing bank must accept or pay against documents because 20 by 26 is standard
and the goods conform to the contract.
c. The issuing bank may refuse to accept or to pay the draft upon presentation of the
invoice.
d. If the buyer waives the defect in the invoice, the bank must accept or pay the draft.
The United States Trade Representative is:
a. A cabinet level post reporting directly to the president that carries on trade
negotiations for the U.S.
b. The one that administers the Bureau of Customs and Border Protection.
c. The one that represents the U.S. at all GATT meetings.
d. Both A and C.
e. Both B and C.
A law or regulation affecting a product’s characteristics that must be met before a
product can enter a country is a:
a. Product standard.
b. Technical regulation.
c. Product limitation.
d. Government procurement law.