What is the primary objective of U.S. Customs and Border Protection's (CBP) audit programs?
CBP's audit programs are designed to ensure that importers comply with U.S. customs laws and regulations, including the correct payment of duties and taxes. Audits help identify any discrepancies in duty payments or potential violations.
What does the term "anti-dumping" refer to in international trade?
Anti-dumping measures are intended to prevent foreign companies from "dumping" products at unfairly low prices in the U.S. market, which can harm domestic industries. Such goods are often subject to additional duties to offset the price advantage.
What is the purpose of a Customs-Trade Partnership Against Terrorism (C-TPAT) program?
The C-TPAT program is a voluntary initiative led by CBP that works to strengthen international supply chains and improve security. Companies that participate in C-TPAT demonstrate their commitment to security practices that help prevent terrorism and smuggling.
What is the primary goal of the "Importer Security Filing" (ISF), also known as the "10+2" rule?
The ISF (10+2 rule) requires importers to submit detailed information about their cargo to CBP 24 hours before goods are loaded onto a vessel destined for the U.S. This helps improve security and facilitate risk management during the import process.
Which of the following practices is considered a violation of U.S. Customs law?
Underreporting the value of goods to reduce the amount of duties paid is considered fraud and a violation of U.S. Customs laws. It can lead to severe penalties, including fines and seizure of goods. Properly declaring the value and paying appropriate duties are required for compliance.