Chapter 12

advance determination of the dutiable status of goods

A binding ruling, issued by the U.S. Bureau of Customs and Border Protection, is issued with regard to: a. penalties imposed for non-payment of duties owed. b. advance determination of the dutiable status of goods. c. seizure of goods not allowed for import to U.S. d. all of these are correct.

False

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

False

Foreign Trade Zones make it possible for U.S. manufacturers to export goods without having to pay any duties. a. True b. False

False

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

Oxford English Dictionary and Merriam-Webster Dictionary

In Otter Products, LLC v. U.S., the court engages in an analysis of what "containers" are as used in the phrase "other containers" in Chapter 42 (Subheading 4202.900) and relies upon? a. Prior U.S. federal court precedent. b. Court of International Trade precedent. c. Oxford English Dictionary and Merriam-Webster Dictionary. d. U.S. regulations and regulatory.

False

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

False

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

common meaning and scientific authorities and expert witnesses.

In determining the description of an article under the tariff schedules, the courts rely on: a. common meaning. b. WTO definitions. c. scientific authorities and expert witnesses. d. common meaning and scientific authorities and expert witnesses.

True

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

False

In the United States v. Golden Ship Trading Co 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

False

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

False

In the event where an importer files a protest and Customs denies the protest, an appeal can be filed with a federal court of appeals. a. True b. False

the assessment of applicable duties

Liquidation of goods by the U.S. Bureau of Customs and Border Protection refers to: a. the assessment of applicable duties. b. disposal of seized goods. c. confiscation of goods not allowed for import to U.S. d. sale of unclaimed goods.

True

The owner, purchaser, 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 arrival of the goods. a. True b. False

the use that is greater than any other single use of the article

The principal use of an article refers to: a. the purpose for which it is to be imported. b. the use that is greater than any other single use of the article. c. the use of the components once they are fully assembled. d. any one of these.

value

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.

False

Customs rules and duty assessment rates are uniform throughout NAFTA. a. True b. False

False

Duty-free status is granted to Caribbean nations, including Cuba under the guidelines of both CBERA and the GSP. a. True b. False

False

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

True

Textile imports are classified according to the fibers that constitute the chief weight of the article. a. True b. False

True

The Mod Act shifted to the importer greater responsibility to comply with all customs laws and regulations. a. True b. False

True

The U.S. Bureau of Customs and Border Protection is the agency responsible for assessing and collecting tariffs and administering duty-free zones. a. True b. False

True

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

True

The purpose of trade preferences is to provide assistance for countries whose economies are developing. a. True b. False

True

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

True

There are preference provisions in U.S. tariff laws designed to stimulate the economic progress of less developed nations. a. True b. False

False

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

False

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

manufacturing drawback

A 99% refund of duties and taxes paid on merchandise that is imported, subjected to manufacture or production, and then exported within five years is called a: a. manufacturing drawback. b. substitution drawback. c. same condition drawback. d. re-export drawback.

False

Liquidation of goods must occur within three months of entry and cannot be extended. a. True b. False

the product has been manufactured in one country and shipped to an intermediary country before coming to the U.S.

All of the following indicate that a product has been substantially transformed except: a. the product has a new name, character or use. b. the product has been advanced in value. c. the product underwent a change in tariff classification. d. the product has been manufactured in one country and shipped to an intermediary country before coming to the U.S.

all of these conditions exempt the goods from duties

American exports returned to the U.S. are dutiable except when: a. American-made goods are returned to the U.S. not substantially transformed. b. component parts that were made in the U.S. and assembled in a foreign country. c. articles exported for repair or alteration but not substantial transformation. d. all of these conditions exempt the goods from duties.

True

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

True

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

False

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

False

Goods held in a Foreign Trade Zone must be removed within one year of their original import date. a. True b. False

all of these are correct

Goods may be refused entry into the U.S. by the Bureau of Customs and Border Protection due to: a. quarantine to protect the public health. b. embargoed country of origin. c. lack of a commercial invoice. d. all of these are correct.

same condition drawback

Goods re-exported without having been significantly altered after being imported are subject to a refund of duties paid known as a: a. manufacturing drawback. b. substitution drawback. c. same condition drawback. d. non-transformation drawback.

False

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

True

Imported goods may be entered into the U.S. by the purchaser, consignee, or customs broker. a. True b. False

True

The U.S. and Canada have both adopted the Harmonized Commodity Description and Coding System. a. True b. False

The Caribbean Basin Economic Recovery Act

The U.S. law granting trade preferences to imports from the island nations of the Caribbean and Central America is called: a. The Caribbean GSP Act. b. The Latin American Free Trade Act. c. The Lome Convention. d. The Caribbean Basin Economic Recovery Act.

False

The country of origin is always determined by the WTO definition where the article is grown, produced, or manufactured. a. True b. False

U.S. Bureau of Customs and Border Protection

The customs service may seize articles imported into the U.S. that violate trademark or copyright laws of a U.S. firm but the mark must be registered with the: a. U.S. Bureau of Customs and Border Protection. b. U.S. Patent & Trademark Office. c. U.S. Bureau of Customs and Border Protection and U.S. Patent & Trademark Office. d. The Bureau of Customs and Border Protection does not seize items with this type of violation.

export fees paid by the seller

The dutiable value of imported goods includes the price actually paid or payable when sold for exportation plus all of the following items if not included in the purchase price, with the exception of: a. royalty paid by the buyer as a condition of sale. b. proceeds from the resale of the goods that accrues to the seller. c. selling commission incurred by the buyer. d. export fees paid by the seller.

none of these are correct

The government agency responsible for determining the dutiable status of goods is: a. U.S. Commerce Service. b. U.S. Duties & Tax Service. c. U.S. Port of Entry Service. d. none of these are correct.

eggs, flowers, nuts, and bolts and products that cannot be marked without injury.

U.S. Customs regulations specify many articles that are exempt from marking requirements. Some of these are: a. eggs, flowers, nuts, and bolts. b. products that cannot be marked without injury. c. products originating in Canada or Mexico. d. eggs, flowers, nuts, and bolts and products that cannot be marked without injury.

True

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

False

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

Relative specificity; essential character of the goods; the latest heading that occurs in the schedule

What order does the classification follow when there are two possible classifications for goods? a. The latest heading that occurs in the schedule; essential character of the goods; their relative specificity b. Essential character of the goods; relative specificity; the latest heading that occurs in the schedule c. Relative specificity; the latest heading that occurs in the schedule; essential character of the goods d. Relative specificity; essential character of the goods; the latest heading that occurs in the schedule

True

Where an imported item could be classified under several different provisions of the Harmonized Code, it generally falls under that provision which describes the item most specifically. a. True b. False

False

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

five years

Customs is barred from bringing a civil action to collect an import duty after: a. three years. b. one year. c. five years. d. four years.

it is located in Asia

A country designated as a beneficiary developing country is granted trade preferences for goods entering the U.S. market provided they meet all of the following conditions except: a. it is located in Asia. b. it cooperates with the U.S. in the enforcement of narcotics laws. c. it has not unlawfully expropriated the property of U.S. citizens. d. it is not controlled by a communist government.

a dispute arises regarding liquidation

A protest of entry is filed by the importer against the Customs Service when: a. a dispute arises regarding liquidation. b. a dispute arises regarding the port at which the goods were received. c. the importer wishes to refuse delivery and possession of the goods. d. all of these are correct.

the tariff classification of the article

Country-of-origin information impacts all of the following except: a. the applicability of a countervailing duty. b. the applicability of a quota. c. the tariff classification of the article. d. the rate of duty on an import.

True

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

True

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

True

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

All of these are correct

Which of the following are included in the dutiable assists? a. Raw materials provided by the importer and used in the foreign production of the imported goods b. Tools, dies, and molds provided by the importer to the foreign manufacturer of imported goods c. Engineering, development. and artwork performed by a foreign firm d. All of these are correct

All of these may enter goods

Which of the following are not allowed to enter goods into the customs territory of the United States? a. The purchaser of the goods b. A customs broker authorized to act on behalf of the importer c. Nonresident individuals and foreign corporations d. All of these may enter goods

Same condition and manufacturing

Which of the following combinations of drawbacks are not applicable? a. Same condition and manufacturing b. Manufacturing and substitution c. Substitution and same condition d. Any of these combinations could occur

Ensuring importer compliance with the Incoterms

Which of the following is not a function of the U.S. Bureau of Customs and Border Protection? a. Assessing and collecting tariff revenue b. Regulating the entry of products under quota c. Ensuring importer compliance with the Incoterms d. Supervising exports