EXPORT/IMPORT CERTIFICATE (EIC) PRACTICE EXAM LATEST QUESTIONS AND
CORRECT ANSWERS GRADE A
**1. What is the primary purpose of a Bill of Lading (B/L) in international trade?**
A) To certify the origin of goods
B) To serve as a contract of carriage and a document of title to the goods
C) To provide insurance coverage for the shipment
D) To list the harmonized tariff codes
ANSWER: B
EXPLANATION: A Bill of Lading is issued by a carrier to a shipper, acknowledging receipt of
goods and detailing the terms of carriage. It is a negotiable document that serves as
evidence of the contract and title to the goods.
**2. Which U.S. government agency primarily regulates the export of dual-use items
(commercial items that can have military applications)?**
A) U.S. Customs and Border Protection (CBP)
B) Bureau of Industry and Security (BIS) within the Department of Commerce
C) Office of Foreign Assets Control (OFAC)
D) Directorate of Defense Trade Controls (DDTC)
ANSWER: B
EXPLANATION: The Bureau of Industry and Security (BIS) administers the Export
Administration Regulations (EAR), which control the export, reexport, and transfer of dual-
use items.
**3. The Harmonized System (HS) Code is used internationally to:**
A) Determine freight rates
B) Classify traded products for customs purposes
C) Set international prices for commodities
,D) Identify the manufacturer of goods
ANSWER: B
EXPLANATION: The Harmonized Commodity Description and Coding System (HS) is a
standardized numerical method (6-digit base) for classifying traded products. It is used by
customs authorities worldwide to assess duties and gather statistics.
**4. Under Incoterms® 2020, which rule places the maximum obligation on the seller,
requiring them to deliver the goods to the named destination, cleared for import?**
A) EXW (Ex Works)
B) FOB (Free on Board)
C) CIF (Cost, Insurance, and Freight)
D) DDP (Delivered Duty Paid)
ANSWER: D
EXPLANATION: DDP represents the seller's maximum obligation. The seller is responsible
for all costs and risks, including delivering the goods to the buyer's named place, cleared
for import and paying all duties and taxes.
**5. A Commercial Invoice must include all of the following EXCEPT:**
A) Detailed description and value of the goods
B) Names and addresses of buyer and seller
C) Payment terms (e.g., Letter of Credit)
D) The carrier's insurance policy number
ANSWER: D
EXPLANATION: A commercial invoice is a bill for the goods. Key elements are description,
value, parties, and terms of sale. The carrier's insurance details are not required on a
commercial invoice.
**6. What is the primary function of a Customs Broker?**
,A) To manufacture goods for export
B) To act as an intermediary between importers/exporters and government customs
authorities to clear goods
C) To provide international trade financing
D) To insure cargo against loss
ANSWER: B
EXPLANATION: A licensed customs broker prepares and files necessary documentation,
calculates duties and taxes, and facilitates the clearance of goods through customs on
behalf of importers.
**7. The "Country of Origin" of a product is critical because it determines:**
A) The product's retail price
B) Eligibility for preferential trade agreements and tariff rates, and the application of trade
remedies
C) The required packaging material
D) The Incoterm to be used
ANSWER: B
EXPLANATION: Country of Origin affects the duty rate applied (e.g., under a Free Trade
Agreement like USMCA), and is subject to marking requirements, quotas, and anti-
dumping duties.
**8. Which document is issued by an independent inspection company to verify the
quantity, quality, or price of goods before shipment?**
A) Certificate of Origin
B) Inspection Certificate
C) Packing List
D) Shipper's Letter of Instruction
ANSWER: B
, EXPLANATION: An Inspection Certificate provides third-party assurance that the goods
meet contractual specifications. It is often required by letters of credit or import
regulations.
**9. What is the purpose of a Free Trade Agreement (FTA)?**
A) To eliminate all safety standards for traded goods
B) To reduce or eliminate tariffs and other trade barriers between member countries
C) To establish a common currency between nations
D) To create a single customs union with a unified external tariff
ANSWER: B
EXPLANATION: The primary goal of an FTA is to facilitate trade by removing or reducing
tariffs, quotas, and preferences on goods traded between the signatory countries.
**10. A "Draft" or "Bill of Exchange" in international trade is essentially:**
A) A contract for the sale of goods
B) A formal demand for payment; an unconditional written order to pay a specified sum
C) A document listing the contents of a shipment
D) A certificate of insurance
ANSWER: B
EXPLANATION: A draft is a financial instrument where one party (the drawer) orders
another party (the drawee, often a bank) to pay a specified amount to a third party (the
payee) on demand or at a future date.
**11. The SED (Shipper's Export Declaration) has been replaced in the U.S. by which
electronic filing requirement?**
A) Automated Export System (AES) filing
B) Importer Security Filing (ISF)
C) Electronic Export Information (EEI)
CORRECT ANSWERS GRADE A
**1. What is the primary purpose of a Bill of Lading (B/L) in international trade?**
A) To certify the origin of goods
B) To serve as a contract of carriage and a document of title to the goods
C) To provide insurance coverage for the shipment
D) To list the harmonized tariff codes
ANSWER: B
EXPLANATION: A Bill of Lading is issued by a carrier to a shipper, acknowledging receipt of
goods and detailing the terms of carriage. It is a negotiable document that serves as
evidence of the contract and title to the goods.
**2. Which U.S. government agency primarily regulates the export of dual-use items
(commercial items that can have military applications)?**
A) U.S. Customs and Border Protection (CBP)
B) Bureau of Industry and Security (BIS) within the Department of Commerce
C) Office of Foreign Assets Control (OFAC)
D) Directorate of Defense Trade Controls (DDTC)
ANSWER: B
EXPLANATION: The Bureau of Industry and Security (BIS) administers the Export
Administration Regulations (EAR), which control the export, reexport, and transfer of dual-
use items.
**3. The Harmonized System (HS) Code is used internationally to:**
A) Determine freight rates
B) Classify traded products for customs purposes
C) Set international prices for commodities
,D) Identify the manufacturer of goods
ANSWER: B
EXPLANATION: The Harmonized Commodity Description and Coding System (HS) is a
standardized numerical method (6-digit base) for classifying traded products. It is used by
customs authorities worldwide to assess duties and gather statistics.
**4. Under Incoterms® 2020, which rule places the maximum obligation on the seller,
requiring them to deliver the goods to the named destination, cleared for import?**
A) EXW (Ex Works)
B) FOB (Free on Board)
C) CIF (Cost, Insurance, and Freight)
D) DDP (Delivered Duty Paid)
ANSWER: D
EXPLANATION: DDP represents the seller's maximum obligation. The seller is responsible
for all costs and risks, including delivering the goods to the buyer's named place, cleared
for import and paying all duties and taxes.
**5. A Commercial Invoice must include all of the following EXCEPT:**
A) Detailed description and value of the goods
B) Names and addresses of buyer and seller
C) Payment terms (e.g., Letter of Credit)
D) The carrier's insurance policy number
ANSWER: D
EXPLANATION: A commercial invoice is a bill for the goods. Key elements are description,
value, parties, and terms of sale. The carrier's insurance details are not required on a
commercial invoice.
**6. What is the primary function of a Customs Broker?**
,A) To manufacture goods for export
B) To act as an intermediary between importers/exporters and government customs
authorities to clear goods
C) To provide international trade financing
D) To insure cargo against loss
ANSWER: B
EXPLANATION: A licensed customs broker prepares and files necessary documentation,
calculates duties and taxes, and facilitates the clearance of goods through customs on
behalf of importers.
**7. The "Country of Origin" of a product is critical because it determines:**
A) The product's retail price
B) Eligibility for preferential trade agreements and tariff rates, and the application of trade
remedies
C) The required packaging material
D) The Incoterm to be used
ANSWER: B
EXPLANATION: Country of Origin affects the duty rate applied (e.g., under a Free Trade
Agreement like USMCA), and is subject to marking requirements, quotas, and anti-
dumping duties.
**8. Which document is issued by an independent inspection company to verify the
quantity, quality, or price of goods before shipment?**
A) Certificate of Origin
B) Inspection Certificate
C) Packing List
D) Shipper's Letter of Instruction
ANSWER: B
, EXPLANATION: An Inspection Certificate provides third-party assurance that the goods
meet contractual specifications. It is often required by letters of credit or import
regulations.
**9. What is the purpose of a Free Trade Agreement (FTA)?**
A) To eliminate all safety standards for traded goods
B) To reduce or eliminate tariffs and other trade barriers between member countries
C) To establish a common currency between nations
D) To create a single customs union with a unified external tariff
ANSWER: B
EXPLANATION: The primary goal of an FTA is to facilitate trade by removing or reducing
tariffs, quotas, and preferences on goods traded between the signatory countries.
**10. A "Draft" or "Bill of Exchange" in international trade is essentially:**
A) A contract for the sale of goods
B) A formal demand for payment; an unconditional written order to pay a specified sum
C) A document listing the contents of a shipment
D) A certificate of insurance
ANSWER: B
EXPLANATION: A draft is a financial instrument where one party (the drawer) orders
another party (the drawee, often a bank) to pay a specified amount to a third party (the
payee) on demand or at a future date.
**11. The SED (Shipper's Export Declaration) has been replaced in the U.S. by which
electronic filing requirement?**
A) Automated Export System (AES) filing
B) Importer Security Filing (ISF)
C) Electronic Export Information (EEI)
