Key Facts & Limitations of U.S. Export & Import Regulations for Supply Chain Management, Exams of Study of Commodities

Download Key Facts & Limitations of U.S. Export & Import Regulations for Supply Chain Management and more Exams Study of Commodities in PDF only on Docsity! Certified Export Specialist (CES) Exam Study Question with Verified Answers. With respect to cargo insurance claim procedures, the insurance policy will provide specified time limits in which the assured must: - Correct answer 1. Submit a formal claim specifying amount claimed supported by proof of loss documentation. 2. Notify the insurance carrier following discovery of loss. 3. File a lawsuit to pursue an unsettled claim. An airfreight forwarder's function is to make all the arrangements necessary to move a shipment from the shipper or supplier's door to the consignee's door or other place of delivery within the period of time specified by its customer. - Correct answer True Absent a system of common carriage, all "for hire" ocean shipping would revert to contract carriage, with each shipper having to negotiate rates and conditions of service separately with each carrier. - Correct answer True How should you proceed with Schedule B classification of products for which the shipper's description is very general or vague (e.g., "auto parts," "building materials," "medical device")? - Correct answer Contact the shipper for more specific description(s) before proceeding. If imported goods arrive in wood packaging that is not ISPM-15 certified, the shipment may be refused entry and the importer fined regardless of whether the wood actually contains insects. - Correct answer True An international air carrier may reject a claim for damage if the shipper's packaging was inadequate to safeguard the contents from damage resulting from the normal rigors of the intended transportation, and there is no evidence of mis-handling by carrier. - Correct answer True In the case of a routed export transaction where the FPPI has expressly assumed responsibility as exporter under the EAR, the USPPI must, upon request of the FPPI, provide ECCN(s) or sufficient technical information to determine classification. - Correct answer True The "all-risks clause" under an open cargo insurance policy means that all commodities are insured for loss or damage from all commercial risks. - Correct answer False Costs being equal, typically the shipper is better served by a single through intermodal bill of lading rather than separately contracting for each segment of needed transportation. - Correct answer True A supply chain owner can now reliably out-source some or many supply chain management functions to 3PLs or 4PLs. - Correct answer True A U.S. OTI license is required for forwarding type services only when such services are associated with the dispatch of ocean cargo via a U.S. port. - Correct answer True Air cargo shipments, including the connecting land transportation at origin and destination, are insurable under almost all marine open cargo policies. - Correct answer True To which of the following should you refer in order to determine if a substance is classifiable as "dangerous goods" for transport purposes? - Correct answer 1. Shipper 2. Dangerous goods list (DGL) A party solely performing consular documentation services for an ocean shipment departing via U.S. port on behalf of another party (shipper or ocean forwarder) requires an OTI license issued by the FMC. - Correct answer False Dangerous goods are uniformly identified in all international DG regulations (e.g., IMDG Code, ICAO Technical Instructions) through a global classification system, by: - Correct answer 1. Proper Shipping Name 2. Hazard Class 3. Packing Group 4. Hazard Division, when applicable 5. US Number Enforcement of FMC regulations is primarily conducted by the U.S. Justice Department. - Correct answer False A letter of credit may be amended only to change the amount, expiry date, shipping deadline or required documents. - Correct answer False Three basic limitations to carrier liability for cargo loss or damage found in industry- standard terms and conditions are: - Correct answer 1. Liability is limited to actual value of the cargo loss. 2. Liability is limited to a maximum value per package or shipment weight as imposed by law and/or the contract of carriage. 3. The loss must occur through carrier negligence. The shipper's airwaybill will typically include the service and charge for pick-up and all other requested services to complete the shipment to the delivery point for which the shipper is responsible. - Correct answer True All original bills of lading, properly endorsed, must be surrendered back to the shipping line at destination in exchange for delivery of the cargo. - Correct answer False Under U.S. anti-boycott provisions, a U.S. person may refuse to do business with parties in a boycotted country only on request of a customer in a boycotting country. - Correct answer False A house bill of lading or house air waybill is not acceptable under a letter of credit unless use of one is specifically authorized in the L/C. - Correct answer False Inbound supply chains require continuous supply chain visibility down to the purchase order level. - Correct answer False EEI filing is required for all shipments destined to a country listed in Country Group E:1. - Correct answer True When a U.S. agent of the FPPI applies for an export license, the "Applicant" on the license should be the agent's name, followed by "as agent of the FPPI's name." - Correct answer True International rules covering documentary draft collections are found in: - Correct answer Uniform Rules for Collections (URC) Which of the following are correct regarding the value to be reported in the EEI? - Correct answer 1. When there is no sale, the USPPI's cost of acquiring or producing the goods, plus the domestic costs to the port of export must be used. 2. The value, if a sale is involved, shall be the selling price, including all domestic costs to the port of export. 3. Commissions to be deducted from the selling price by the USPPI's agent abroad are to be excluded from the value reported. Which U.S. agencies require a prospective exporter be registered, permitted or licensed as a precondition for applying for an export license or permit for items under its jurisdiction? - Correct answer 1. U.S. Bureau of Alcohol, Tobacco and Firearms (BATF) with respect to certain firearms, ammunition and explosives 2. U.S. Drug Enforcement Administration (DEA)with respect to controlled substances 3. State Department (DDTC) with respect to defense articles Virtually all nations have adopted the Hague Visby Rules to define the respective legal rights and obligations of ocean carriers and shippers under a berth service ocean contract of carriage. - Correct answer False Which of the following industries and occupations are known to regularly ship dangerous goods so that these shippers should receive additional scrutiny as to possible "hidden" dangerous goods? - Correct answer 1. Arms and munitions manufacture 2. Pharmaceutical manufacture 3. Petroleum refining 4. Petroleum engineer 5. Chemical manufacture 6. Theatre production company In order to furnish evidence of financial responsibility, a U.S.-based NVO may file a surety bond with the FMC in the amount of $75,000.00. - Correct answer True Under FMC regulations, an NVO may be either a common carrier or a contract carrier. - Correct answer False The most comprehensive cargo insurance coverage is "all-risks" clause, whereas "general average" coverage alone would be the least comprehensive. - Correct answer True The Hamburg Rules are the international standard for the terms and conditions for an international air waybill. - Correct answer False The current ratio above which international air cargo becomes subject to cubic chargeable weight is 1 kilogram per 6,000 cubic centimeters. - Correct answer True U.S. export controls are based on a combination of: - Correct answer Destination, commodity and transaction parties Documentation and other import requirements may vary from one importer to another, based on the importer's situation. - Correct answer True Provided war risk insurance coverage is being obtained from the same insurance company as commercial marine cargo coverage, both may be shown on the same marine cargo insurance certificate. - Correct answer True As a rule, air shipment provides faster door-to-door transit times than truck for distances over 700 km. - Correct answer False Many countries today require consular visas or legalization of the shipping documents in the country of export. - Correct answer False Most destination countries require that non-manufactured wood packing and dunnage materials be treated, certified and marked as specified in ISPM-15 in the origin country before shipment. - Correct answer True What two EAR sections are needed to determine export requirements for a particular product and destination? - Correct answer 1. Commerce Control List (15 CFR 774, Supplement 1) 2. Commerce Control List Overview and The Country Chart (15 CFR 738) The EAR contains anti-boycott provisions that prohibit U.S. persons from participating in trade boycotts imposed by other nations against a nation friendly with the U.S. - Correct answer True In recent years there has been increasing use of "gray box" containers by both shipping lines and shippers. - Correct answer True An L/C beneficiary with an expired letter of credit may request the negotiating bank to amend the credit by extending the expiry date. - Correct answer False - An expired L/C cannot be amended, it must be reissued Almost anything that can be packaged to fit within the cargo hold of commercial aircraft operating between needed origin and destination airports can be shipped by air. - Correct answer True Information requirements for a dangerous goods shipper's declaration and certification are consistent across all international and national dangerous goods regulations except for additional information which may be required based on the transport mode, national variations and/or operator limitations. - Correct answer True The Commerce Control List (CCL) contains all the information needed to determine if a prospective U.S. export will require an export license. - Correct answer False As a matter of "good practice" the following should be used as the draft number for a documentary draft collection: - Correct answer Seller's commercial invoice number Once you know the U.N. number for a product, what information can you obtain directly from the applicable UN number line-item in the Dangerous Goods List? - Correct answer 1. Subsidiary hazard class(s), if any apply 2. Required hazard label 3. Excepted quantities provision, if applicable 4. Further product description, when required, following proper shipping name All electric batteries must be prepared and documented as dangerous goods when shipped via commercial transportation. - Correct answer False The Schedule B number classification is used for determining the type of export authorization needed for the shipped commodities. - Correct answer False Shippers insuring ocean cargo against commercial risks typically also insure against war risks. - Correct answer True A forwarder that as a matter of policy does not handle dangerous goods is exempt from the "Recognition of Undeclared Dangerous Goods" training required under international DGRs. - Correct answer False The maximum permissible quantity of dangerous goods that may be shipped by air is significantly more restricted than what may move by other transportation modes in terms of quantity per package, per shipment and per aircraft. - Correct answer True Cargo insurance eliminates the risks that a shipment will be lost or arrive damaged. - Correct answer False "Through transportation" is synonymous with "door-to-door movement." - Correct answer False Which of the following data fields must always be used (are mandatory) when transmitting EEI? - Correct answer 1. Carrier Identification 2. U.S. State of Origin 3. Ultimate Consignee Use of intermodal containers in ocean transportation began in: - Correct answer In the mid 1950s An airline airwaybill (AWB) is "issued" only when signed by an airline employee upon acceptance of the cargo. - Correct answer False Electronic bill of lading messages have largely replaced use of paper bills of lading. - Correct answer False The Hague-Visby Rules are the most widely adopted international set of rules governing the transportation of goods by ocean common carrier. - Correct answer True The only reason a buyer will typically purchase from a supplier in another country is because the product is simply not available domestically. - Correct answer False Ocean carrier terms and conditions are entirely consistent with all other ocean carriers due to applicable international rules. - Correct answer False In the case when a customs officer of a visited country signs and stamps a carnet Importation Counterfoil and releases the cargo, but fails to collect the Importation Voucher, there will be no customs record of a temporary importation under that carnet. - Correct answer False When exporting goods under a DEA export permit, what must the shipper or forwarder do prior, or incidental, to tendering the cargo to the export carrier? - Correct answer 1. Provide the DEA export permit serial number and date on the shipper's export declaration (EEI). 2. Submit the original and a duplicate copy of the DEA export permit to CBP at the port of export prior to export as required under local CBP procedure. 3. Enter onto the DEA export permit document the export details (carrier name, transportation document number, intended departure). A beneficiary must present shipping documents to the negotiating bank within 7 banking days after shipment unless the L/C states otherwise. - Correct answer False Both ocean carrier liability conditions and marine cargo insurance policies state a "time for suit" period, which operates as an absolute limit in which cargo loss claims must be filed. How long after the loss and/or delivery is this period? - Correct answer 1 year Cargo insurance certificates typically are issued as a single negotiable "original" for the assured to retain until the consignee has paid for the goods. - Correct answer False Goods shipped under a carnet are exempt from general U.S. import and export restrictions. - Correct answer False The UCP requires that each document presented for L/C negotiation must contain verbatim the L/C's description of the shipped goods. - Correct answer False If any items within a shipment are exported under an export license or other USG export authorization, the export license number or other document ID must be included in the EEI commodity line-item detail for the item. - Correct answer True Receipt-for-carriage transport documents are not acceptable under a letter of credit unless the L/C specifically states otherwise. - Correct answer True Forwarders typically charge more for arranging a through intermodal bill of lading with an ocean carrier because this takes additional time compared with separate arrangements for each segment of transportation. - Correct answer False When a straight B/L is issued with originals, and the consignee on the B/L cannot provide an OB/L to the carrier for shipment delivery, the carrier will require written approval from the shipper to release the cargo to the named consignee without surrender of the OB/L. - Correct answer True An ocean bill of lading marked "original" is a negotiable bill of lading. - Correct answer False An electronic bill of lading requires all the parties who work with it to participate in electronic exchange of specified messages via a secure network environment such as an ocean carrier portal. - Correct answer True Only the essential terms of a VOCC service contract must be filed with the FMC before any cargo moves under the contract. - Correct answer False Which of the following are correct regarding the requirement for a container packing certificate (CPC)? - Correct answer 1. Must be prepared by the person who packed or supervised the packing of of dangerous goods into a shipper-packed container or other closed conveyance. 2. CPC information and signed certification may be combined with the DG shipper's declaration ("transport document") or may be on a separate form attached to the carrier's transportation document. 3. Required for all DG loaded into a shipper-packed container or other closed conveyance that will be subsequently be transported by vessel. Dangerous goods regulations require a shipper to book in advance all dangerous goods with the intended transportation carrier(s). - Correct answer False Once a letter of credit has been issued, only the issuing bank may cancel or make changes to it. - Correct answer False If an L/C covering an export is payable in the currency of the export country, the exporter bears the currency exchange risk. - Correct answer False Which ocean B/L form of consignment provides the highest level of control through bill of lading endorsement and surrender of original B/L for cargo delivery? - Correct answer Negotiable bill of lading A forwarder's agency is limited and its responsibilities should be clearly defined with the principal in advance, ideally through a formal letter of engagement. - Correct answer True Although inland pre-carriage or on-carriage arranged by a VOCC under a through bill of lading may be convenient, it is typically more expensive for a shipper or consignee than their making these arrangements separately. - Correct answer False The UCP establishes standards and procedures for L/C document review and acceptance by the negotiating bank. - Correct answer True In a routed export transaction, when the FPPI assumes responsibility in writing for determining export requirements, the USPPI must, upon request of the FPPI, provide ECCN(s) or sufficient technical information to determine classification. - Correct answer True An exclusion deletes coverage of a particular type or commodity or shipping risk from all or some of the coverage otherwise available under a cargo insurance policy. - Correct answer True An NVOCC Service Arrangement (NSA) enables a high-volume shipper to achieve better rates and conditions of service than would be possible under a VOCC service contract. - Correct answer False A forwarder's "standard" terms and conditions, including liability limits for cargo and financial losses resulting from errors, will typically be the same across all services the forwarder provides. - Correct answer False An inland marine cargo insurance policy typically excludes coverage for the domestic portion of import or export shipments. - Correct answer True During flight the cargo compartment temperature of most aircraft is maintained between what temperatures? - Correct answer 35 to 65°F Cargo that is particularly susceptible to damage from physical handling and other rigors of transportation may be subject to exclusion from insurance coverage for breakage or subject to a "breakage" deductible. - Correct answer True Failure to fulfill destination country import requirements may result in shipment delay, fines or even seizure of the cargo! - Correct answer True The FMC regulates regularly-scheduled ocean carriers, other than bulk vessels, serving U.S. ports regardless of whether they operate in traditional common carriage. - Correct answer True An L/C may specify documents not necessarily required under the Incoterm applicable to the transaction. - Correct answer True Commercial on-line export compliance screening services are very helpful because they will quickly search all lists and databases, and, if they find a match to the name of the company or person(s) involved in a prospective export, you should immediately cancel the order or shipment. - Correct answer False In a routed export transaction the USPPI is not required to provide an agent of the FPPI with a power of attorney or written authorization. - Correct answer True An AES filer must possess the following types of core knowledge: - Correct answer 1. Schedule B Commodity classification for statistical reporting purposes 2. Filer-level operation of the AES system 3. Operation of U.S. export controls and the process to determine applicability to particular shipments What must a forwarder NOT do when a consignee or carrier at destination reports an original bill of lading that is urgently needed for cargo release as missing? - Correct answer Authorize release of the shipment without surrender of a properly endorsed OB/L and/or in exchange for a shipper or bank letter of indemnity. Materials that could pose a threat of injury to personnel or significant damage to property if not maintained below a specified temperature during transportation are classified as dangerous goods. - Correct answer True If an import shipment in wood packaging that is not certified and marked as ISPM-15 arrives into a country that has adopted the ISPM-15 standard, the customs or agricultural authorities will likely seize and destroy the shipment. - Correct answer False Under a single through intermodal bill of lading, if a portion of the cargo is missing or damaged upon arrival at the destination point, in order to know which carrier to file a claim against, the consignee must determine when during the transportation process the loss occurred. - Correct answer False Cargo insurance covers loss or damage from contamination, infestation and spoilage from external sources for all adequately packaged cargo. - Correct answer True When a U.S. export declaration is required for a shipment, software installed on hardware that is being exported must be separately reported on the U.S. export declaration for the hardware if such software is subject to the EAR. - Correct answer True When SHIPPING arms, munitions, AND military equipment, the shipper, forwarder and carrier(s) must understand and comply with all laws controlling these items not only in the origin and destination countries, but also in each transit country. - Correct answer True Cargo capacity for most airports is a function of the passenger volume, with the exception of major airports which may have scheduled all-cargo flights available. - Correct answer True In order to receive delivery of an ocean shipment consigned to "order of shipper," a party must present to the shipping line at destination an original bill of lading the shipper has either blank endorsed or else endorsed to them. - Correct answer True Once a beneficiary (exporter) receives a letter of credit advice letter from a legitimate domestic bank, payment for the goods to be shipped is assured. - Correct answer False For domestic air shipments handled by a forwarder, the truck pick-up from the shipper and delivery to the consignee will typically be included as part of the house air waybill charges. - Correct answer True Airport cartage is organized to serve particular airport(s) and their surrounding areas within +/-120 kilometers. - Correct answer False Which of the following shipments require EEI filing? - Correct answer 1. All exports of items subject to the EAR that will be transshipped through Canada to a third destination, when a direct export from the U.S. to the final destination would require EEI filing 2. All items exported under the authorization Validated End-User (VEU) program An NVOCC operating from outside the U.S. must engage a U.S. licensed OTI to act as its agent within the U.S. to perform needed operational services on its behalf. - Correct answer True What is the single largest cause of cargo loss? - Correct answer Theft Overseas shipments under 150 kgs. are generally less expensive by air than by ocean mode because of the high minimum ocean bill of lading charges. - Correct answer False Once the drawee endorses ("accepts") a term or date draft, the draft serves as a promissory note. - Correct answer True As a general rule, shippers and forwarders should assume that an NVOCC sub- contracts all the transportation needed to accomplish their bills of lading. - Correct answer True Use of a separate shipper's declaration form (i.e., not placing the shipper's declaration information on the carrier's transportation document) is: - Correct answer 1. Required for air shipment 2. Necessary as a practical matter for shipments arranged by a freight forwarder 3. A good practice when there will be multiple carriers needed to complete the through movement from origin to destination. The animal inspection, examination, testing and treatment for issuance of a USDA health certificate must be performed in a USDA-operated or authorized facility no sooner than 24 hours before embarkation onto the export conveyance. - Correct answer True Reducing physical risks of cargo loss is always important whether or not a potential loss is covered under carrier liability and/or cargo insurance. - Correct answer True An air forwarder prepares customs and other shipping documents "as needed" for international shipments. - Correct answer True Which of the following is a product-based document required for customs clearance? - Correct answer Health certificate Which of the following, when observed, require that a DG shipment be rejected, or if already accepted when the problem is recognized, not further transported. - Correct answer 1. Signs of leakage or escape of contents The FMC reserves the right to determine what constitutes ocean forwarding services on a caseby-case basis. - Correct answer True A forwarder may use forwarder compensation from an ocean carrier as consideration to reduce or offset the fees it would otherwise charge for rendering services. - Correct answer False The value of goods for EEI purposes is their value as if sold at the U.S. port of export, inclusive of domestic transportation and insurance costs, but not including costs beyond the port. - Correct answer True What type of paper bill of lading is issued without originals? - Correct answer Express bill of lading The symbol "NLR" is used solely as the AES Exemption Legend on the transport document when EEI is not required. - Correct answer False Typically, air forwarders break out the airfreight rate on their house air waybills for each route segment. - Correct answer False The U.S. Hazardous Material Regulations (HMR) authorizes the use of these international dangerous goods regulations for use in the U.S.: - Correct answer 1. ICAO Technical Instructions 2. IMDG Code 3. IAEA Regulations A transshipment bill of lading is an example of a combined B/L. - Correct answer True A negotiating bank must interpret information on shipping documents that is not required by the L/C or the UCP to be a discrepancy. - Correct answer False Open cargo policies issued to freight forwarders, customs brokers and NVOs are limited to shipments under the assured's house air waybills and house bills of lading. - Correct answer False Under Incoterms 2020 the respective obligations of the seller and the buyer are addressed under 10 sequential headings that repeat for all trade terms. This sequence places the more important and/or distinctive obligations earlier in the sequence. In what position in this sequence are mutual obligations for Delivery of the goods specified? - Correct answer 2 For overseas shipments, creative use of sea-air-truck routing can cut the cost compared with using through airfreight by as much as 70% while increasing the through transit time by only 50%. - Correct answer False As long as cargo is not off-loaded at port calls en route to the destination country, customs authorities in the intermediate countries have no interest in the cargo. - Correct answer False Regardless of the transportation modes involved, all cargo transportation exposes cargo to the same types and levels of risk. - Correct answer False If dry ice will be used within packaging to maintain temperature, the shipment becomes subject to air cargo dangerous goods regulations. - Correct answer True It is always the shipper's legitimate prerogative to show a fictitious name as shipper or consignee on a bill of lading. - Correct answer False What is the lead U.S. agency responsible for enforcing all U.S. laws and other agency export regulations at the time and place of export? - Correct answer Customs and Border Protection Under COGSA, ocean carrier liability for loss or damage to cargo is limited to SDR 2 per kg. or SDR 666.67 per package, whichever is higher for a particular shipment. - Correct answer False The United Stated Code ("USC") and the U.S. Code of Federal Regulations ("CFR") are both divided into 10 "titles." - Correct answer False Who is always responsible for adequately packaging cargo for the rigors of the intended transportation mode(s)? - Correct answer Seller The consignee of surviving cargo on a ship that declares a general average will not be able to receive his cargo unless/until he takes out general average insurance. - Correct answer False For goods to be exported that are not being sold (e.g., replacement goods under warranty, gifts, etc.), the EEI value should be the cost to the exporter of obtaining the goods in the U.S. - Correct answer False An insurance certificate showing "to order of assured" as the loss payee and blank endorsed by the assured entitles anyone in possession of the certificate to receive a claim settlement for loss to the described shipment provided the assured can provide proof of loss documentation. - Correct answer True Before proceeding with the actual Schedule B (or HTSUS) classification you must have a description of the item that differentiates it from similar items that are separately classified. - Correct answer True Under no circumstances do marine cargo insurance policies cover spoilage of temperature controlled cargo. - Correct answer False Which of the following are key U.S. government publications which play a major role in regulating and processing U.S. exports? - Correct answer 1. Foreign Trade Regulations 2. Export Administration Regulations 3. Foreign Assets Control Regulations 4. International Traffic in Arms Regulations Under a straight bill of lading, the carrier must deliver the shipment to the named consignee unless this party has endorsed the bill of lading over to another party. - Correct answer False A degree of market stability for berth service carriers and shippers can be achieved through service contracts. - Correct answer True When used in a marine cargo insurance policy, the term "average" means "loss." - Correct answer True The "port of discharge" on an intermodal bill of lading specifies the place of delivery. - Correct answer False If a draft is required to draw funds under a letter of credit, it must always be drawn on the issuing bank and presented with any other required documents. - Correct answer False If an ocean carrier accepts a booking for delivery to its CFS, or places "CFS-CFS" on its B/L, the carrier is obligated to stow the cargo in an intermodal container for ocean shipment. - Correct answer False When an ocean bill of lading set has been accepted by the shipper and distributed to the consignee, it becomes an "accomplished bill of lading." - Correct answer False Which of the following identify groups into which the INCOTERMS are divided? - Correct answer 1. Group F main carriage unpaid 2. Group D arrival (destination country) In the context of dangerous goods regulations, a "transport document" is synonymous with "transportation document". - Correct answer False Cost of shipping cargo on all-cargo aircraft, especially in large upper deck container loads, is typically a lower cost than shipping the same quantity of cargo in the lower deck of a passenger flight over the same route. - Correct answer False The "cube" of a shipment is obtained by multiplying the three dimensions of each cargo package and/or ULD as tendered to the carrier. - Correct answer True Which of the following are the three ways DDTC debarment differs from a BIS denial order? - Correct answer 1. Debarment is generally for a period of 3 years, whereas a BIS denial order may be for any period of time, including indefinite or permanent. 2. Debarment may be imposed for a wider variety of reasons. 3. Debarment does not necessarily result in a BIS denial order or affect the party's U.S. export activity other than for defense articles. In selecting between competing arms-length NVOCCs, a forwarder should generally select the NVO that pays higher forwarder compensation as long as the shipper does not pay more. - Correct answer False It is a good practice for U.S. ocean forwarders to publish a "standard" fee schedule along with their standard terms and conditions. - Correct answer False Country of origin for customs purposes can always be determined based on "chief value." - Correct answer False A term draft is payable within the stated period following arrival of goods. - Correct answer False The term "hazardous materials" as used in the U.S. HMR is synonymous with the term "dangerous goods" as used in international shipping regulations. - Correct answer True In general, a drawer or agent should use two mailings to send original shipping documents to a remitting bank for a draft collection. - Correct answer False Tools of the trade may be shipped as airfreight at lower cost than as baggage provided they are shipped at least 3-5 days ahead of the time the person needing them will arrive. - Correct answer False Which International Maritime Organization (IMO) rules directly affect the preparation of an ocean bill of lading? - Correct answer International Maritime Dangerous Goods Code The Incoterm applicable to an export-import transaction determines which party is responsible for hiring an international freight forwarder when one is needed. - Correct answer True An AES filer is independently responsible for the truth, accuracy, and completeness of the EEI, and must not simply rely on information received from the USPPI or other parties. - Correct answer False NVOCC bills of lading issued for carriage via a U.S. port are subject to U.S. COGSA rules with respect to most terms and conditions, including carrier liability and carrier liability limitations. - Correct answer True When no EEI filing is required the applicable AES Exemption Legend must be noted on the loading document and provided to the export carrier at least 48 hours prior to departure. - Correct answer False What is the minimum civil penalty under the HMR for a violation relating to hazardous materials training? - Correct answer $450 Today the cost in US$ to ship a ton of general cargo (W/M) in an intermodal container across the Pacific is only about twice what it was to ship the same cargo via a breakbulk vessel in 1960. - Correct answer False An NVOCC's breakbulk agent could be responsible for the full value of the goods for release of a shipment to a party not entitled to receive it. - Correct answer True Under the IMDG CODE and ICAO TI, the shipper's declaration information may be placed directly on the transportation document (e.g., bill of lading, air waybill) or a separate form may be used. - Correct answer True The rate basis for most ocean commodity rates is "weight or measure" (W/M). - Correct answer True Prior to departure from the U.S. for a foreign destination, an export carrier must electronically transmit to CBP its full customs manifest details for each shipment on board. - Correct answer True The U.S. generally prohibits U.S. persons from participating in trade boycotts that the U.S. is not a party to. - Correct answer True Ocean carriers and shippers are subject to standard international rules governing conditions of service, and these always apply regardless of what the parties may otherwise wish to change. - Correct answer False If components are physically marked with a country of origin other than that of the chief value of the end-product of which they are a part, their respective countries of origin must be shown on the certificate of origin. - Correct answer False To minimize the risk of theft, the description of "target commodities" on the transport document should be that of a different commodity than what is actually in the shipment. - Correct answer False Rebating is any practice or act (i.e., payments, gifts, favors, etc.) that returns to the shipper or other party with a beneficial interest in cargo any portion of the freight charges collected by an ocean common carrier pursuant to its tariff. - Correct answer True "NLR" code is used for commodities which are listed in the CCL, but which are not controlled under the CCL given the circumstances of the particular shipment. - Correct answer True Most container shipping lines provide a single-carrier through intermodal bill of lading between most berth service ports throughout the world. - Correct answer True The issuing bank will not create an L/C amendment without receiving instructions from the advising bank. - Correct answer False In certain countries, a company or individual must be specifically licensed or otherwise approved by customs or other national authorities in order to become a commercial importer. - Correct answer True