Question

6. Which of the following is not an office in US Customs and Border Protection?

1. Office of Field Operations
2. Office of Supply Chain Management
3. Office of Border Patrol
4. Office of International Trade

7. The Customs Modernization or “Mod” Act introduced three important concepts into law.   Which one of the following is not one of those concepts?

1. Shared Responsibility
2. Informed Compliance
3. Reasonable Care
4. Focused Assessment Audits

8. Informed compliance is a shared responsibility between ______________ and the ________________.

1. US Customs, Customs Broker
2. US Customs, Importer
3. Customs Broker, Importer

9. Customs was the government’s primary source of revenue until the income tax was established.

1. True
2. False

10. Imported goods are not legally entered until after the shipment has arrived within the port of entry, delivery of the merchandise has been authorized by Customs and estimated duties have been paid.

1. True
2. False

Answer 1

6. Answer:correct option b. Office of Supply Chain Management

Office of Field operations(OFO), is the largest component of the US Customs and Border Protection and is responsible for border security and agriculture protection.So option a is incorrect.

The Office of Border Patrol(OBP) is a component under US Customs and Border Protection and is responsible for preventing the entry of terrorists and terrorist weapons from entering the United States between official US Customs and Border Protection ports of entry. So option c is incorrect.

The Office of International Trade consolidates the trade policy, program development, and compliance measurement functions of US Customs and Border Protection into one office. So option d is incorrect.

7. Correct option is d.Focused Assessments Audits

The United States Customs Modernization Act , commonly known as "Mod Act", amended the tariff Act of 1930 and related laws.The mod act was passed with aim of increasing the voluntary compliance with customs laws and improvements to customs enforcement. It introduced two new customs concepts known as "informed compliance" and "shared responsibility".these concepts are premised on the idea that to maximize voluntary compliance with customs laws and regulations, the trade community needs to be clearly and completely informed of its legal obligations.

Section 637 of the Mod Act amended section 484 of Tariff act of 1930 and imposed on importers for the first time a statutory duty to exercise "reasonable care" in providing Customs and Border Protection with accurate and timely classification, appraisement and other data upon importing cargo.

So the three important concepts introduced by Mod Act are informed compliance, shared responsibility and reasonable care.So options a, b and c are incorrect options.

8.Correct Option is b. US customs, importer

The informed compliance is a shared responsibility that the customs administrations have a responsibility to educate importers on what is expected of them.With that comes a responsibility for the importers to take concrete steps to ensure that they are complying with applicable laws and regulations.

So, informed compliance is a shared responsibility between US Customs and Importer.Thus, options a and c are incorrect.

9. a.True

The sources of Federal government have changed dramatically over the past 200 years. The US has gone from almost exclusive reliance on customs duties to almost exclusive reliance on income and payroll taxes as means of funding the government.The federal revenue structure can be classified into three eras: the customs duties era(before 1863), the rising excise tax era(1863-1913), and the income tax era (1914-present).

In the initial customs duties era Customs duties accounted for almost 90% of federal govt revenues.After the War of 1812, excise taxes were introduced in a small scale but it was negligible when total tax revenue was considered.And so at the end of the era, ie in the 1860s , the major Source of revenue was customs duties-accounting for about 85% of total revenue.

After 1863 excise taxes also got prominence and was on rise till the income tax was introduced in 1913.Over the 50-year period between 1863 and 1913, excise taxes generated 40% of federal revenue,whereas customs duties generated 49%.

So, it is true that the major revenue source of the federal government was customs before the introduction of income tax.

10.Correct option, a.True

Entry of imported goods

When a shipment reaches the United States, the owner, purchaser, or designated licensed customs broker(ie, the importer of record) must file entry documents for the goods with the port director at the goods port of entry. to legally enter the US, imported goods must arrive within the port of entry, delivery of the merchandise must be authorized by Customs and Border Protection(CBP) and estimated duties must be paid.the importer of record is responsible for the arrangement of examination and release of the goods.

Thus option a is correct.

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