QN1: FTZs are operated as utilities under the supervision of the FTZ Board, which is authorized to grant the privilege of establishing a zone.
a. Private
b. Public
c. Loading
d. Transportation
Answer
Answer: b
QN2: Economic advantages of FTZs include which of the following?
a. Merchandise admitted into the zone is subject to partial customs duty until it is admitted into the customs territory.
b. Businesses can export a product subject to a high rate of duty and manipulate and manufacture it into a final product that is classified under a low rate of duty when imported into the customs territory.
c. Merchandise may be remarked but not reconditioned to conform to certain requirements for entry.
d. Duties are paid on the partial quantity of such foreign goods incorporated in merchandise transferred from the customs territory into the zone of entry.
Answer
Answer: b
QN3: In which parts of the world besides the United States are FTZs established?
a. Africa
b. Asia
c. Eastern Europe
d. All of the above
Answer
Answer: d
QN4: Which of the following describes the difference between a bonded warehouse and an FTZ?
a. Costs for the use of a bonded warehouse are generally more than for FTZs
b. Bonded warehouses may be established under a user’s facilities and with unlimited degree of difficulty as compared with FTZs
c. The permitted types of manipulation are limited in the case of a bonded warehouse than for an FTZ
d. Bonded warehouses charge high interest rates on all fees for the use of its facilities, unlike FTZs
Answer
Answer: c
QN5: Duty is not payable when goods under bond are , or under customs supervision.
a. Exported, destroyed
b. Imported, destroyed
c. Withdrawn, destroyed
d. None of the above
Answer
Answer: a
QN6: Keeping abreast of market trends often helps identify products that are in great demand. Which of the following is an example of this statement?
a. Increases in the immigrant population from Asia and Latin America have encouraged growth in the import of more and greater variety of spices.
b. Increases in the agricultural sectors from Mexico and Latin America have encouraged growth in the import of more and greater variety of agricultural goods.
c. Increases in the textile and apparel industry in China has encouraged growth in the import of more and greater variety of apparels.
d. Increases in the cotton industry in Africa has encouraged growth in the imports of cotton to developed nations.
Answer
Answer: a
QN7: The major reason for global sourcing in the industry is the unavailability of needed products in the U.S. market.
a. Steel
b. Textile
c. Chemical
d. Seafood
Answer
Answer: c
QN8: Trade shows provide importers with the following advantages:
a. A variety of products to buy
b. Opportunities for personal contact
c. Information on competitors
d. All of the above
Answer
Answer: d
QN9: Which of the following trade publications provide business and trade opportunities in various countries?
a. Trade Channel
b. Asian Sources
c. General Merchandise
d. All of the above
Answer
Answer: d
QN10: Approximately how many trade shows take place in more than 70 countries every year?
a. 2,000
b. 2,500
c. 3,000
d. 3,500
Answer
Answer: a
QN11: To which individual would a sample of a product be shown to obtain an estimate of the shipping and insurance cost in order to calculate the price at which the merchandise will be sold?
a. Retailer
b. Importer
c. Exporter
d. Freight forwarder
Answer
Answer: d
QN12: Which of the following is a quality control program used to measure the quality of imports?
a. QS-1400
b. QS-1200
c. QS-9000
d. QS-1000
Answer
Answer: c
QN13: Which of the following companies jointly developed the quality control program for imports?
a. Chrysler, GM, and Ford
b. GE, Unilever, and HLL
c. HLL, GM, and Ford
d. AV, HLL, and Chrysler
Answer
Answer: a
QN14: Which two critical factors determine import levels?
a. Per capita incomes and population size
b. Economic and trade relations
c. Purchasing power parity
d. GDP and FDI
Answer
Answer: b
QN15: Economic theory also suggests that import levels are affected by other factors, including which of the following?
a. Price of imports, exchange rate, and price of international goods relative to exports
b. Price of imports and exchange rate only
c. Price of imports and price international goods relative to exports
d. Price of imports, exchange rate, and price of domestic goods relative to imports
Answer
Answer: d
QN16: Whereas relative prices have a predictable and systematic impact on imports, price elasticities tend to be , and in most instances well unity.
a. High; above
b. Low; below
c. High; below
d. Low; above
Answer
Answer: b
QN17: The study by (1989) examining the factors influencing import demand in Pakistan from 1959 to 1986 found that a policy of devaluation or raising tariffs was not significant in reducing imports expect in the case of imports of and transport .
a. Sarmad; machinery; equipment
b. Prahald; equipment; machinery
c. Hammond; machinery; equipment
d. Singh; equipment; machinery
Answer
Answer: a
QN18: Which policy led to more import dependence and was a popular economic strategy among some developing nations, specifically for the purchases of raw materials, components, etc.?
a. Warner-Krenin import substitution policy
b. Import substitution policy
c. Foreign exchange substitution policy
d. FDI substitution policy
Answer
Answer: b
QN19: Which of the following is not a major factor in international supplier selection?
a. Quality assurance
b. Financial conditions
c. Buyer-supplier relationships
d. Exporter-freight forwarder relationships
Answer
Answer: d
QN20: Certification of potential suppliers for strict quality assurance, technical capability to prevent quality failures, and overall commitment to quality assurance is important for:
a. Quality assurance
b. Financial conditions
c. Buyer-supplier relationships
d. Exporter-freight forwarder relationships
Answer
Answer: a
QN21: Which factors are considered to be important when selecting the right supplier?
a. Protection of IPRs
b. Delivery time
c. Import duty implications
d. All of the above
Answer
Answer: d
QN22: A study conducted in on the decision process of U.S. purchasing agents suggests timely delivery, product brand name, and style as important factors that determine purchasing decisions.
a. 1981
b. 1982
c. 1983
d. 1984
Answer
Answer: c
QN23: Which of the following elements are used to identify low cost suppliers?
a. Raw materials, labor costs, current exchange rates, and transportation costs
b. Raw materials, labor costs, and transportation costs only
c. Labor costs and transportation costs only
d. Raw materials and transportation costs only
Answer
Answer: a
QN24: Buyer-supplier relationships includes evaluating:
a. Financial stability of supplier
b. Negotiation flexibility of supplier
c. Supplier’s commitment to quality
d. a and b
Answer
Answer: d
QN25: Final selection of supplier is based on:
a. International knowledge and experience of supplier
b. Supplier’s willingness to devote sufficient time to develop the product
c. Supplier’s willingness to provide training
d. All of the above
Answer
Answer: d
QN26: Lower price, higher-quality products, and advanced technology available from external sources are all advantages of which of the following systems?
a. Foreign direct investment
b. Outsourcing
c. Direct foreign investment
d. b and c
Answer
Answer: b
QN27: Which of the following is an example of an in-bond plant contractor or wholly owned operation of the foreign firm?
a. Maquiladora
b. Foreign direct investment
c. Foreign subsidiary
d. Joint venture
Answer
Answer: a
QN28: Foreign producers are able to export through which of the following channels if a direct channel is adopted?
a. Subsidiary
b. Joint venture
c. Importer
d. All of the above
Answer
Answer: d
QN29: Which of the following is a common mistake by potential importers?
a. Inability to develop an appropriate price structure
b. Insufficient knowledge of the market
c. Failure to invest sufficient time and effort to develop the business
d. All of the above
Answer
Answer: d
QN30: Which of the following is not used as a tool to finance imports?
a. Closed account
b. Open account
c. Letter of credit
d. Documentary collection
Answer
Answer: a
QN31: A U.S. importer purchases 2,000 porcelain dolls from a manufacturer in China for $25,000. Terms of sale are CIF San Francisco. International airfreight and insurance costs total $7,400.Following the dolls’ importation, the importer pays the U.S. license holder a royalty fee of $2 per doll for the right to resell the dolls in the United States. None of the parties are related. Which one of the following represents the correct appraised value for the imported dolls for customs purposes?
a. $25,000
b. $32,400
c. $17,600
d. $21,600
Answer
Answer: c
QN32: Select the correct the answer that best describes an entry.
a. The act of filing the necessary documentation with the border patrol officer to secure the release of imported materials
b. The act of transporting products into bordering countries
c. The act of filing the necessary documentation with the customs officer to secure the release of imported merchandise
d. None of the above
Answer
Answer: c
QN33: Which documentation serves as evidence of a right to make entry when goods are initially imported into the country?
a. Air waybill
b. Bill of lading
c. Customs broker entry form
d. Foreign entry form
Answer
Answer: b
QN34: In 2005, The U.S. Customs and CBP processed $ trade entries and collected about
$ billion in tariffs, taxes, and user fees.
a. $29 million; $31 billion
b. $29 million; $31.4 billion
c. $28.3 million; $31 billion
d. $28.3 million; $31.4 billion
Answer
Answer: b
QN35: Entry documents generally consist of which of the following procedures?
a. An entry manifest (Form 7533) or application and special permit for immediate delivery
b. A commercial invoice
c. A packing list
d. All of the above
Answer
Answer: d
QN36: A bond must be posted filing the entry summary to guarantee payment of duties or taxes upon the final assessment of duties or other fees by customs.
a. Before
b. After
c. Upon
d. None of the above
Answer
Answer: a
QN37: Customs bonds are usually percent of the duties, taxes, and fees paid by the importer during the previous months.a. 11; 13
b. 11; 12
c. 10; 13
d. 10; 12
Answer
Answer: c
QN38: Which of the following element is not included on invoices?
a. Description of port of entry and detailed description of merchandise
b. Description of the name of the actual buyer, place, and date of purchase
c. All charges included in the invoice price, including commissions, insurance, etc.
d. Any discounts as well as charges incurred by seller or consignee
Answer
Answer: b
QN39: Which of the following is not a type of entry?
a. Entry for warehouse
b. Entry for transportation devoid of bond
c. Entry for consumption
d. Mail entry
Answer
Answer: b
QN40: Identify the type of entry: A refund of 99 percent of all customs duties is allowed under certain conditions, including if the imported material is exported in the same condition as when imported, or if the imported merchandise is used in the manufacturing process and exported within five years from the date of importation.
a. Entry for warehouse
b. Refund entry
c. Drawback entry
d. Temporary importation under bond
Answer
Answer: c
QN41: Identify the type of entry: No entry is required on duty-free merchandise not exceeding
$2,000 in value. For merchandise over $2,000, formal entry is required. For certain entry of products such as furs, leathers, and footwear, the limit is $250.
a. Mail entry
b. Informal entry
c. Entry for consumption
d. Entry for retail
Answer
Answer: a
QN42: is the final ascertainment of the duties and drawback accruing on an entry by customs.
a. Protest
b. Petition
c. Liquidation
d. Bond posting
Answer
Answer: c
QN43: Liquidation is required for all entries of imported merchandise with exception of which of the following?
a. Temporary importation bond entry
b. Transportation in bond
c. Imports subject to immediate exportation
d. All of the above
Answer
Answer: d
QN44: Customs has the right to reliquidate any entry within days from the date of notice of the original liquidation.
a. 30
b. 45
c. 60
d. 90
Answer
Answer: d
QN45: In what year was the Harmonized Tariff Schedule of the U.S. adopted?
a. 1988
b. 1989
c. 1990
d. None of the above
Answer
Answer: a
QN46: Which of the following is a major benefit of adopting the HTSUS?
a. The HTSUS will be in line with the tariff determination procedures of most countries of the world.
b. It facilitates the shipment and documentation of merchandise into the United States and creates a uniform and familiar system for U.S. exporters shipping to other countries.
c. Such uniformity in classification and coding across countries simplifies the conduct of international trade negotiations and increases the accuracy of international trade statistics.
d. All of the above
Answer
Answer: d
QN47: The HTSUS classifies goods according to their , or in the case of apparel, on the basis of the fiber of chief weight.
a. Essential materials
b. Essential character
c. Essential weight
d. All of the above
Answer
Answer: b
QN48: What is the average tariff rate in the United States, regardless of the fact that some imports are subject to higher tariffs?
a. 2 percent
b. 3 percent
c. 4 percent
d. 5 percent
Answer
Answer: d
QN49: Select the correct order in which imported merchandise is appraised.
a. Deductive value, transaction value, computed value
b. Transaction value, deductive value, computed value
c. Computed value, transaction value, deductive value
d. Computed value, deductive value, transaction value
Answer
Answer: b
QN50: Which method is used when the transaction value cannot be determined in such cases as sales between related parties?
a. Computed value
b. ISM value
c. Deductive value
d. None of the above
Answer
Answer: c
QN51: This method starts with the costs of materials, labor, and overheads in producing the imported goods. Customs then adds profits and general expenses incurred by the producer.
a. Computed value
b. ISM value
c. Deductive value
d. Transaction value
Answer
Answer: a
QN52: Imported articles are to be marked with the name of which of the following?
a. Country of origin
b. Manufacturing company
c. a and b
d. None of the above
Answer
Answer: a
QN53: Special markings are required are for certain articles, including which of the following?
a. Artworks
b. Lumber
c. Sugar
d. All of the above
Answer
Answer: d
QN54: Marking is not required for which of the following items?
a. Steel
b. Crude substances
c. a and b
d. None of the above
Answer
Answer: b
QN55: Select which automated service best fits this description: This is a cargo inventory control and release notification system. This system interfaces with other systems such as ABI to allow for faster identification and release of low-risk shipments. It speeds the flow of cargo and entry processing and provides participants with electronic authorization of cargo release prior to arrival. It also facilitates the intermodal movement and delivery of cargo.
a. AMS
b. AIS
c. ACH
d. AES
Answer
Answer: a
QN56: The cumulative doctrine is allowed for which of the following reasons?
a. Determining material injury in dumping cases
b. Determining material injury in subsidy cases
c. a and b
d. None of the above
Answer
Answer: c
QN57: In the case of a petition, determines within days whether to initiate or terminate the investigation based on whether the petition adequately alleges material injury?
a. Commerce; 20
b. Commerce; 60
c. ITA; 20
d. ITA; 60
Answer
Answer: a
QN58: What happens after Commerce’s affirmative preliminary determination?
a. Suspension of liquidation of the investigated merchandise
b. The requirement of bonds or cash deposits to be posted for each entry
c. The continuation of the investigation by the ITC of a final investigation concerning injury, threat, or retardation
d. All of the above
Answer
Answer: d
QN59: Which of the following is not among the top ten countries cited for antidumping cases in the United States?
a. U.K.b. Brazil
c. India
d. Korea
Answer
Answer: c
QN60: Which of the following countries has the highest rate of antidumping cases in the United States?
a. France
b. China
c. Japan
d. Germany
Answer
Answer: c
QN61: Among the countervailing duty cases in the United States, which country has the highest percentage?
a. India
b. Brazil
c. Germany
d. Canada
Answer
Answer: b
QN62: In order to successfully petition for the imposition of countervailing duties on imported goods, a U.S. company or industry must show that:
a. Foreign exporters are selling their goods on the U.S market for less than fair value
b. The dumping causes material injury to U.S. industry
c. a and b
d. None of the above
Answer
Answer: c
QN63: The Tariff Act of 1930 prohibits:
a. The importation of articles that violate a valid U.S. patent, trademark, copyright, etc.
b. Unfair methods of competition by the importer
c. Unfair methods of competition by the consignee
d. All of the above
Answer
Answer: d
QN64: Which of the following describes gray-market goods?
a. Products that are authorized by the owner of production rights to be made and sold in one market are diverted and sold in another, often unauthorized.
b. Products that are authorized by the owner of production rights to be made and sold in one market are diverted and sold in the same market, often unauthorized.
c. Products that are authorized by the owner of production rights to be made and sold in one market are diverted and sold in another, often authorized.
d. Products that are authorized by the owner of production rights to be made and sold in one market are diverted and sold in the same market, often authorized.
Answer
Answer: a
QN65: A large percentage of Section cases involve patent infringement.
a. 354
b. 227
c. 337
d. 378
Answer
Answer: c
QN66: Which of the following is a remedy if intellectual property rights violation has occurred?
a. A general or limited exclusion order that directs customs to deny entry of certain goods
b. A cease and desist order that enjoins a person from further violation of Section 337
c. a and b
d. None of the above
Answer
Answer: c
QN67: Identify the definition of market disruption.
a. A moderate increase in imports that causes material injury or threat to a domestic industry producing a product similar to, or in direct competition with, the imported article
b. A moderate increase in exports that causes material injury or threat to a domestic industry producing a product similar to, or in direct competition with, the exported article
c. A rapid increase in imports that causes material injury or threat to a domestic industry producing a product similar to, or in direct competition with, the imported article
d. A rapid increase in exports that causes material injury or threat to a domestic industry producing a product similar to, or in direct competition with, the exported article
Answer
Answer: c
QN68: Section of the Trade Act of was introduced in order to seek open access to U.S. exports in foreign markets. It is directed at foreign government practices that restrict U.S. exports or artificially direct goods or services to the United States.
a. 301; 1975
b. 301; 1974
c. 303;1975
d. 303;1974
Answer
Answer: b
QN69: 301 is another version of 301 applicable to intellectual property rights.
a. Super; special
b. Special; special
c. Super; super
d. Special; super
Answer
Answer: d
QN70: Which of the following countries were identified for their trade policies and practices that had the greatest adverse effect on U.S. products in 2005?
a. China
b. Argentina
c. Poland
d. All of above
Answer
Answer: d
QN71: Which act gives the president discretion to restrict imports that threaten national security?
a. IPR Act
b. PRI Act
c. Tariff Act
d. U.S. Trade Act
Answer
Answer: c
QN72: is the selling of a product in a foreign market at a price that is lower than the price for which it is sold in the home market.
a. Subsidy
b. Dumping
c. Export subsidy
d. Domestic subsidy
Answer
Answer: b
QN73: Trade remedies include which of the following?
a. Import interference with agricultural programs
b. Trade adjustment assistance
c. The escape clause
d. All of the above
Answer
Answer: d
QN74: Injury is established by which of the following?
a. Import volumes
b. Lost sales
c. Impact on domestic producers of the similar products
d. All of the above
Answer
Answer: d
QN75: In the absence of sales or sufficient sales of the like product in the domestic market of the exporting country, dumping may be measured by comparison through which of the following ways?
a. With a comparable price of a like product sold in a third country
b. With the cost of production in the country of origin plus a reasonable amount for administrative, selling, and other costs and for profits (constructed value)
c. With a comparable price of a like product sold in the same country
d. a and b
Answer
Answer: d
QN76: Actionable subsidies include subsidies bestowed on products used in the production of an imported item (upstream subsidies).
a. Domestic; input
b. Domestic; output
c. Global; input
d. Global; output
Answer
Answer: a
QN77: and investigations are conducted either on the basis of a petition filed with the through the and the on behalf of a domestic industry or by Commerce upon its initiative.
a. AD; CVD; Commerce; ITA; ITC
b. AD; ITC; Commerce; ITA; CVD
c. AD; Commerce; CVD; ITC; ITA
d. AD; ITA; CVD: Commerce: ITC
Answer
Answer: a
QN78: Intellectual property rights include:
a. Patents
b. Trade secrets
c. Copyrights
d. All of the above
Answer
Answer: d
QN79: The issue of IPRs has received wider attention compared to other property rights for which of the following reasons?
a. The volume of trade in goods protected by intellectual property rights is becoming increasingly significant as more countries produce and consume products that result from creative activity and innovation.
b. The globalization of markets has created opportunities for the production and/or sale of unauthorized copies to supply the newly generated demand.
c. a and b
d. None of the above
Answer
Answer: c
QN80: Select the statement that best defines a patent.
a. A proprietary right granted by the government to inventors for an unlimited period of time to exclude other persons from manufacturing or using the product
b. A proprietary right granted by the government to inventors for an unlimited period of time to exclude other persons from only selling the product
c. A proprietary right granted by the government to inventors for a fixed period of time to exclude other persons from manufacturing, selling, or using the product
d. None of the above
Answer
Answer: c
QN81: In the United States, patents are valid for a period of how many years from the filing date?
a. 20 years
b. 25 years
c. 30 years
d. 35 years
Answer
Answer: a
QN82: Which of the following is not a function of a trademark?
a. Identifies multiple sellers’ goods and distinguishes them from goods sold by others
b. Signifies that all goods bearing the trademark come from a single source and are of an equal level of quality
c. Serves as a primary instrument in advertising and selling the goods
d. b and c
Answer
Answer: d
QN83: Patentable subject matter includes all of the following except:
a. Machines
b. Manufactured articles
c. Software
d. Processes
Answer
Answer: c
QN84: In the United States, trademarks are valid for how many years from the date of registration?
a. 4 years
b. 8 years
c. 10 years
d. 12 years
Answer
Answer: c
QN85: The historical roots of trade secrets protection can be traced to ancient , where death by torture was prescribed for revealing the secret of silk making to outsiders, and to ancient , where enticing a competitor’s servant to disclose business secrets was a punishable offense.
a. China; Rome
b. Rome; China
c. Japan; Greece
d. Greece; Japan
Answer
Answer: a
QN86: In most developed nations, protection is afforded through laws pertaining to which of the following?
a. Contracts
b. Criminal law or torts
c. Breach of confidence
d. All of the above
Answer
Answer: d
QN87: Which of the following products are not patented?
a. Aircraft and automobiles
b. Detergents
c. Food products
d. All of the above
Answer
Answer: d
QN88: A copyright does not protect which of the following?
a. Literary work
b. Musical work
c. Technological innovations
d. Dramatic works
Answer
Answer: c
QN89: After the death of an author, for how many more years are copyrights protected?
a. Minimum of 50 years
b. Maximum of 50 years
c. Minimum of 75 years
d. Maximum of 75 years
Answer
Answer: a
QN90: Which of the following are considered to be core copyright industries?
a. Business
b. Entertainment software
c. Motor vehicles
d. All of the above
Answer
Answer: d
QN91: Which of the following is considered an issue pertaining to IPRs?
a. The growth of trade in counterfeit goods
b. The strong enforcement of IRP protection
c. Nonpiracy acts of IPRs
d. The growth in trade of new technologies
Answer
Answer: a
QN92: Which of the following are considered reasons that a country may be designated as a priority foreign country by the U.S. government?
a. Its policies or practices have the greatest adverse impact on relevant U.S. products.
b. It is engaged in good faith negotiations to address these problems.
c. The policies and procedures have the minimal adverse impact on relevant U.S. products.
d. b and c
Answer
Answer: a
QN93: Which U.S. organization has the authority to exclude the importation of imports that violate intellectual property rights?
a. U.S. Department of IPRs
b. U.S. Customs
c. U.S. Department of Commerce
d. U.S. CBP
Answer
Answer: b
QN94: Which of the following is considered a red flag for IPRs?
a. Exporter is known to sell infringing goods and has a history of enforcement actions for IPR violations
b. Merchandise is exported from sources with IPR problems
c. Payment term is CDO rather than letter of credit
d. Shipment is underinsured
Answer
Answer: d
QN95: Select the country that best fits this description: Trademarks and trade secrets are inadequately protected. Software piracy is widespread, and the narrow interpretation of patents by domestic courts has allowed local competitors to conduct activity that violates the rights of legitimate patent owners. In order for enforcement to take place on copyright and patent products, all trademarks must be registered. Any delays in the registration process makes enforcement difficult, and open the door to piracy.
a. China
b. Singapore
c. Japan
d. Malaysia
Answer
Answer: c
QN96: Select the country that best fits this description: The National Intellectual Property Institute
(INPI) has begun to approve patents for pharmaceutical products. The service has been extremely slow for issuing patents to products with commercial value. It has adequate protection for IPRs, mostly due to the government’s ratification of the World Intellectual Property Organization Copyright Treaty. However, this is not enough, as recorded music, videos, books, and computer software products continue to be pirated. Currently, the country is under the Special 301 Priority Watch List due to its lack of enforcement of IPRs.
a. Brazil
b. Bolivia
c. Argentina
d. Chile
Answer
Answer: c
QN97: Which of the following countries, whose protection and enforcement of IPRs warrants close monitoring and resolution, was placed on the 2006 priority watch list?
a. China
b. Syria
c. Bolivia
d. South Korea
Answer
Answer: a
QN98: The Paris Convention is used in connection with which of the following?
a. International protection of industrial property
b. International copyright protection
c. Universal Copyright Convention
d. All of the above
Answer
Answer: d
QN99: The Paris Convention treaty sets three fundamental rules, including which of the following?
a. National treatment
b. Right of priority
c. Minimum standards
d. All of the above
Answer
Answer: d
QN100: The Paris Convention is monitored by ?
a. WIPO
b. IWPO
c. PCT
d. CPT
Answer
Answer: a
QN101: Which of the following is considered a fundamental feature of the TRIPS agreement?
a. Lack of standards
b. Lack of enforcement
c. Nondispute settlement
d. None of the above
Answer
Answer: d
QN102: Regional conventions that aim to increase the enforcement of IPRs include the following:
a. African Regional Intellectual Property Organization
b. Latin American Patent Office
c. Asian Regional Intellectual Property Organization
d. U.S. Patent and IRP Organization
Answer
Answer: a
