Question

. What is the proposed replacement for NAFTA that is currently pending full approval and entry into force?

1. DR-CAFTA
2. KORUS
3. Drawback
4. USMCA

22. Which of the following is not an aspect of USMCA vehicle qualification?

1. Corporate steel & aluminum North American purchases of at least 70%
2. Regional value content requirement of 75%
3. Labor value content of 40% - high wage labor production of North American parts
4. The concept of core parts – main vehicle systems with a 75% RVC requirement
5. Annual conflict mineral content reporting

23. Free Trade Agreements encourage trade with partner countries and can lower the cost of goods for consumers.

1. True
2. False

24. Under the current NAFTA net cost method of calculating the regional value content (RVC) for the automotive industry, what % does the RVC result need to be to allow the producer or importer to certify the article for Autos as NAFTA eligible?

1. 50%
2. 52.5%
3. 62.5%
4. 65.5%

25. What are important characteristics of a good supply chain?

1. Transparency
2. Consistency
3. Efficiency
4. All of the above

26. Which of the following were not established by Customs strictly for security purposes?

1. Container Security Initiative (CSI)
2. Importer Self-Assessment (ISA)
3. Customs Trade Partnership Against Terrorism (CTPAT)
4. Integrated Border Enforcement Teams (IBET)

27. When an Importer of Record files their first entry with Customs, they are automatically enrolled as a CTPAT participant as long as they are a wholly owned US entity.

1. True
2. False

28. In order to use FAST, importers must ___________________________________ .

1. be located in a specific area of the United States
2. be in a specific revenue category
3. be CTPAT approved
4. be importing goods that originate under the terms of the NAFTA
5. post a bond

29. A strong Customs department is primarily concerned with the following:

1. Mitigation of risk
2. Minimization of duties paid
3. Compliance in all processes
4. All of the above

30. Participating in the following 2 programs, will grant you Trusted Trader status with CBP:

1. FAST and ISA
2. NAFTA and FAST
3. CTPAT and ISA
4. FAST and CTPAT

Answer 1

21.  What is the proposed replacement for NAFTA that is currently pending full approval and entry into force?

Ans;  USMCA

The United States-Mexico-Canada Agreement (USMCA), the deal is intended to replace the North American Free Trade Agreement (NAFTA) and creates a modernized free-trade system between the three parties that addresses recent and emerging critical issues, such as the harmonization of regulatory systems, e-commerce and the protection of intellectual property.

President Donald Trump and Democratic leaders agreed on a deal to pass a new trade agreement between the U.S., Mexico and Canada that will update NAFTA.

22. Which of the following is not an aspect of USMCA vehicle qualification?

Ans; Annual conflict mineral content reporting

23. Free Trade Agreements encourage trade with partner countries and can lower the cost of goods for consumers.

Ans; True

A free trade agreement is a pact between two or more nations to reduce barriers to imports and exports among them. Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange. Hence it is true.

24. Under the current NAFTA net cost method of calculating the regional value content (RVC) for the automotive industry, what % does the RVC result need to be to allow the producer or importer to certify the article for Autos as NAFTA eligible?

Ans: 62.5%

The USMCA has significantly altered the North American content requirements for passenger vehicles, light trucks, and heavy trucks to be certified as originating. North American content requirements under the NAFTA were 62.5 per cent for both cars and light trucks, and 60 per cent for heavy trucks. In addition, certain core parts, including engines, advanced batteries for electric or hybrid vehicles, transmissions, suspension and steering systems must be originating in order for the entire passenger vehicle or light truck to qualify for preferential treatment.

25. What are important characteristics of a good supply chain?

Ans : All of the above

The characteristics of a good supply chain are visibility, optimization, having the lowest cost possible, timeliness, consistency and efficiency.

• Data visibility. Supply chain tools are a window into what is happening in the business: What do customers want, how much and when?
• Data "slice- and dice-ability." Detailed data of supply chain operations can be overwhelming.
• Focus on the right problem area.
• Alignment with organization and process.

26. Which of the following were not established by Customs strictly for security purposes?

Ans : Integrated Border Enforcement Teams (IBET)

Integrated Border Enforcement Teams (IBETs) – IBETs enhance border integrity and security between designated ports of entry along the U.S.-Canada border by identifying, investigating, and interdicting persons, organizations, and goods that threaten the national security of one or both countries or that are involved in.

27. When an Importer of Record files their first entry with Customs, they are automatically enrolled as a CTPAT participant as long as they are a wholly owned US entity.

Ans : False

There are 12 different types of business entities that are eligible for CTPAT membership. For an importer to be eligible to join CTPAT, it must:

• Be an active US importer or non-resident Canadian importer that has imported goods into the US within the past 12 months
• Have an active US importer of record (IOR) number
• Have a valid continuous import bond registered with CBP
• Operate a business office staffed in the US or Canada

28. In order to use FAST, importers must _______

Ans : be CTPAT approved

Must be a U.S. Customs-Trade Partnership Against Terrorism (C-TPAT)-approved carrier and transporting qualifying goods for a C-TPAT-approved importer.

29. A strong Customs department is primarily concerned with the following:

Ans : All of the above

The principal roles of the Customs Service include:

• exercising customs control on the commercial international exchange.
• assessing and collecting customs duties and taxes in the part calculated at the State's border (VAT, excise)
• fighting against smuggling activity and counteracting customs fraud.

30. Participating in the following 2 programs, will grant you Trusted Trader status with CBP:

Ans: CTPAT and ISA

CBP itself sees it as a “holistic” program that unifies the current Customs-Trade Partnership Against Terrorism (C-TPAT) and the Importer Self-Assessment (ISA) processes in order to integrate supply chain security and trade compliance.