EXP 101: Export Overview

Which of the following agencies is not normally involved in regulating exports? A. Department of Commerce, Census Bureau. B. Department of Homeland Security, Customs and Border Protection. C. Department of Agriculture, Animal and Plant Health Inspection Service. D. Department of Labor, Bureau of Labor Statistics. E. Department of the Treasury, Office of Foreign Assets Controls.

D. Department of Labor, Bureau of Labor Statistics.

Which of the following would be considered an export under the Export Administration Regulations? A. Loading your product into an ocean container and shipping it to Dubai. B. Sending a product sample via courier to a potential customer in Canada. C. Reviewing blue prints of your new U.S. product with your German subsidiary's manufacturing staff. D. Sending manufacturing specifications for a new product to a potential supplier in China. E. All the above are true

E. All the above are true

Which of the following is true regarding the cost of not complying with the U.S. export regulations? A. Penalties have remained level in recent years. B. A company can lose its export privileges as a result of non-compliance with the regulations. C. Penalties for failure to comply only cover commodities. D. Penalties are only applied to corporations. E. Both A and B above are correct.

B. A company can lose its export privileges as a result of non-compliance with the regulations.

The compliance staff would not be responsible for which of the following? A. Preparation and implementation of an Export Management and Control System. B. Determination of engineering standards for use in the development of new products. C. Control of the jurisdiction and classification process. D. Screening transactions for any prohibited elements, including "Red Flags." E. Auditing transactions and adherence to procedures to assure the Export Management and Control System is effective.

B. Determination of engineering standards for use in the development of new products.

What general rules apply to exports? A. The rules that apply to an export from the U.S. do not apply to a reexport of the same item. B. Different rules apply to different situations depending on how the item is to be used. C. The physical characteristics of a commodity do not matter when determining whether or not an export license is required. D. It is not necessary to know the final destination of an export, as long as you know the intended end-use. E. All of the above are correct.

B. Different rules apply to different situations depending on how the item is to be used.

Which of the following would not be considered an export under the Export Administration Regulations? A. Permitting Indian design engineers employed by your Indian subsidiary access to product drawings on your server located in Chicago. B. Hiring a German national who is a permanent resident alien (green card holder) to manage your manufacturing quality assurance department. C. Bringing Chinese nationals from your new Suzhou subsidiary to your Kansas manufacturing plant to learn how to manufacture the products you are transferring to the China plant. D. Sending detailed product drawings as email attachments to your maquiladora in Mexico. E. Downloading new communications software from your New York office server to your locations in Montreal, Paris and London.

B. Hiring a German national who is a permanent resident alien (green card holder) to manage your manufacturing quality assurance department.

Which of the following is true? A. The Nuclear Regulatory Commission regulations control only the export of uranium. B. The Commerce Control List includes information regarding potential license requirements based on reasons for control C. The U.S. Munitions List does not include technical data or services. D. Classification requirements apply only to products, not technology or software. E. Once a specific product is classified, the same classification will apply to all of the same products of that type.

B. The Commerce Control List includes information regarding potential license requirements based on reasons for control

Which of the following is not true? A. If the item you wish to export is not included in the Commerce Control List, you may still need an export license in some situations. B. The only party to the transaction that you need to be concerned about is your customer. C. Both the Bureau of Industry and Security and the Internal Revenue Service have regulations regarding Restrictive Trade Practices. D. Shipments of some encryption items must be reported to the National Security Agency. E. Both A and B above are not true.

B. The only party to the transaction that you need to be concerned about is your customer.

Which of the following is not required for an effective export compliance program? A. Full support of the senior management of the company. B. Knowledge of your company's products, where and how they are used, and different uses to which they can be adapted. C. A separate international logistics department. D. Knowledge of your customers, and their customers, including what their products are and how they use your products. E. A procedures manual effectively implemented company-wide.

C. A separate international logistics department.

Different agencies are responsible for different parts of the export process. Which of the following is not true? A. The Directorate of Defense Trade Controls regulations cover only exports of military articles and defense services. B. The Bureau of Industry and Security is responsible for those items not exclusively regulated by some other agency. C. Customs and Border Protection is an import agency and is therefore not involved in regulating exports. D. The Census Bureau gathers information used both for export control and statistical purposes. E. The Animal and Plant Health Inspection Service regulations cover the export of wooden pallets and skids.

C. Customs and Border Protection is an import agency and is therefore not involved in regulating exports.

To know if you have a legal export you must do which of the following? A. Enter the order into your computer system as quickly as possible so you can get the shipment out to the customer. B. Ignore the routing instructions from the customer since the shipment is being made on a "freight collect" basis. C. Review the transaction for any "Red Flag" indicators regardless of which agency may have jurisdiction. D. Prepare only those documents required by the customer in the purchase order. E. Keep only those records your Accounting Department requires so they can collect for the sale.

C. Review the transaction for any "Red Flag" indicators regardless of which agency may have jurisdiction

Which of the following is not important in determining if an export or reexport license may be required? A. Whether or not the article is on the U.S. Munitions List. B. Whether or not the commodity can be used in a chemical plant as well as a water purification facility. C. The article is small enough to be "hand carried" in a sales person's briefcase. D. Made in one or more of the following countries: Singapore, China, Egypt, Mexico. E. The end-user is an institution of higher learning, e.g., a college or university.

C. The article is small enough to be "hand carried" in a sales person's briefcase.

Which of the following is necessary to determine if the export will be legal? 1. Classify the product under the Commerce Control List in the Export Administration Regulations since they control exports from the U.S. 2. Review the transactions to assure there are no end-uses, end-users or end-destinations involved that would require an export license or prohibit the transaction. 3. Only file a report of the export with the Census Bureau since they maintain export statistics. 4. Review the transaction and all documents for any indication of anti-boycott requests. A. Both 1 and 4 are necessary. B. Both 1 and 3 are necessary. C. Both 2 and 3 are necessary. D. Both 3 and 4 are necessary. E. Both 2 and 4 are necessary.

E. Both 2 and 4 are necessary.

Which statement is true regarding restrictions on exports from the United States? A. Some items can be exported almost anywhere without a license. B. All exports require an export license. C. Military goods can never be exported. D. Restrictions apply only to high tech goods. E. There are none, both individuals and goods can move freely across the borders.

A. Some items can be exported almost anywhere without a license.

For an effective export compliance program, which of the following is not true? A. The compliance function can be effectively handled by assigning different elements of the function to different people in different departments as they have time. B. Senior management must issue a signed policy statement indicating the importance of compliance with the various government export regulations. C. As indicated in the Nunn-Wolfowitz Report, an effective Export Management and Control System must be implemented. D. The compliance staff must be assigned the responsibility, and have the authority to fulfill its mission. E. Senior management must provide its complete, unqualified support for the compliance function.

A. The compliance function can be effectively handled by assigning different elements of the function to different people in different departments as they have time.