Customs Compliance Specialist
Examination Questions And Correct
Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
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Question 1
Which of the following is the primary legal authority governing customs
operations in the United States?
A. The Tariff Act of 1930
B. The Customs Modernization Act
C. Title 19 of the Code of Federal Regulations
D. The North American Free Trade Agreement
Answer: C. Title 19 of the Code of Federal Regulations
Rationale: Title 19 of the CFR contains the regulations implementing customs laws,
including entry procedures, classification, valuation, and enforcement. While the
Tariff Act of 1930 provides statutory authority, the CFR is the primary operational
legal authority. The Customs Modernization Act amended the Tariff Act, and
NAFTA is a trade agreement, not the primary U.S. customs law.
Question 2
Under the Harmonized Tariff Schedule (HTS), the first six digits of a tariff
classification are:
A. Unique to each country
B. Internationally standardized under the Harmonized System
,C. Used only for statistical purposes
D. Determined by the World Trade Organization
Answer: B. Internationally standardized under the Harmonized System
Rationale: The first six digits of the HTS are harmonized internationally under the
World Customs Organization's Harmonized System. All WTO member countries use
these six digits for classification. Beyond six digits, countries may add additional
subheadings for duty and statistical purposes.
Question 3
Which of the following documents is NOT typically required for a formal customs
entry in the United States?
A. Commercial invoice
B. Packing list
C. Bill of lading or airway bill
D. Certificate of origin for all shipments
Answer: D. Certificate of origin for all shipments
Rationale: A certificate of origin is only required when claiming preferential tariff
treatment under a free trade agreement or when specifically requested by
Customs. The commercial invoice, packing list, and bill of lading/airway bill are
standard documents required for most formal entries.
Question 4
The Customs Valuation Agreement of the WTO establishes that the primary basis
for customs valuation is:
A. The selling price in the exporting country
B. The transaction value of the imported goods
C. The cost of production plus profit
D. The retail price in the importing country
Answer: B. The transaction value of the imported goods
Rationale: Article 1 of the WTO Customs Valuation Agreement states that customs
,value shall be the transaction value, which is the price actually paid or payable for
the goods when sold for export to the country of importation, subject to certain
adjustments.
Question 5
Which Incoterm places the maximum responsibility and cost on the seller?
A. FOB
B. CIF
C. DDP
D. EXW
Answer: C. DDP (Delivered Duty Paid)
Rationale: Under DDP, the seller bears all costs and risks associated with
transporting the goods to the named place of destination, including import duties
and taxes. EXW places minimal responsibility on the seller, while FOB and CIF
allocate responsibilities between seller and buyer but not to the extent of DDP.
Question 6
A customs broker's power of attorney must be:
A. Oral and confirmed in writing within 30 days
B. In writing and signed by the importer
C. Filed with Customs and Border Protection annually
D. Notarized and witnessed by a customs official
Answer: B. In writing and signed by the importer
Rationale: Under 19 CFR 141.46, a customs broker must have a valid power of
attorney in writing, signed by the importer of record, to transact customs business
on their behalf. It does not require notarization or annual filing with CBP, though it
must be retained and available for inspection.
, Question 7
What is the penalty for making a false statement on a customs declaration under
18 U.S.C. § 1001?
A. Civil penalty only up to $10,000
B. Fine and/or imprisonment up to 5 years
C. Seizure of goods only
D. Revocation of import privileges for 1 year
Answer: B. Fine and/or imprisonment up to 5 years
Rationale: 18 U.S.C. § 1001 makes it a felony to knowingly and willfully make a
false statement in any matter within the jurisdiction of the federal government,
including customs declarations. Penalties include a fine and/or imprisonment for
up to 5 years.
Question 8
The "country of origin" for customs purposes is defined as:
A. The country where the goods are shipped from
B. The country where the goods are manufactured, produced, or substantially
transformed
C. The country where the final invoice is issued
D. The country of the seller's headquarters
Answer: B. The country where the goods are manufactured, produced, or
substantially transformed
Rationale: For customs purposes, country of origin is the country where the goods
underwent their last substantial transformation, resulting in a new and different
article of commerce. Mere shipment or invoicing from a country does not
determine origin.
Question 9
Which of the following is a "restricted merchandise" that requires a special license
or permit for importation?
Examination Questions And Correct
Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
Download Pdf
Question 1
Which of the following is the primary legal authority governing customs
operations in the United States?
A. The Tariff Act of 1930
B. The Customs Modernization Act
C. Title 19 of the Code of Federal Regulations
D. The North American Free Trade Agreement
Answer: C. Title 19 of the Code of Federal Regulations
Rationale: Title 19 of the CFR contains the regulations implementing customs laws,
including entry procedures, classification, valuation, and enforcement. While the
Tariff Act of 1930 provides statutory authority, the CFR is the primary operational
legal authority. The Customs Modernization Act amended the Tariff Act, and
NAFTA is a trade agreement, not the primary U.S. customs law.
Question 2
Under the Harmonized Tariff Schedule (HTS), the first six digits of a tariff
classification are:
A. Unique to each country
B. Internationally standardized under the Harmonized System
,C. Used only for statistical purposes
D. Determined by the World Trade Organization
Answer: B. Internationally standardized under the Harmonized System
Rationale: The first six digits of the HTS are harmonized internationally under the
World Customs Organization's Harmonized System. All WTO member countries use
these six digits for classification. Beyond six digits, countries may add additional
subheadings for duty and statistical purposes.
Question 3
Which of the following documents is NOT typically required for a formal customs
entry in the United States?
A. Commercial invoice
B. Packing list
C. Bill of lading or airway bill
D. Certificate of origin for all shipments
Answer: D. Certificate of origin for all shipments
Rationale: A certificate of origin is only required when claiming preferential tariff
treatment under a free trade agreement or when specifically requested by
Customs. The commercial invoice, packing list, and bill of lading/airway bill are
standard documents required for most formal entries.
Question 4
The Customs Valuation Agreement of the WTO establishes that the primary basis
for customs valuation is:
A. The selling price in the exporting country
B. The transaction value of the imported goods
C. The cost of production plus profit
D. The retail price in the importing country
Answer: B. The transaction value of the imported goods
Rationale: Article 1 of the WTO Customs Valuation Agreement states that customs
,value shall be the transaction value, which is the price actually paid or payable for
the goods when sold for export to the country of importation, subject to certain
adjustments.
Question 5
Which Incoterm places the maximum responsibility and cost on the seller?
A. FOB
B. CIF
C. DDP
D. EXW
Answer: C. DDP (Delivered Duty Paid)
Rationale: Under DDP, the seller bears all costs and risks associated with
transporting the goods to the named place of destination, including import duties
and taxes. EXW places minimal responsibility on the seller, while FOB and CIF
allocate responsibilities between seller and buyer but not to the extent of DDP.
Question 6
A customs broker's power of attorney must be:
A. Oral and confirmed in writing within 30 days
B. In writing and signed by the importer
C. Filed with Customs and Border Protection annually
D. Notarized and witnessed by a customs official
Answer: B. In writing and signed by the importer
Rationale: Under 19 CFR 141.46, a customs broker must have a valid power of
attorney in writing, signed by the importer of record, to transact customs business
on their behalf. It does not require notarization or annual filing with CBP, though it
must be retained and available for inspection.
, Question 7
What is the penalty for making a false statement on a customs declaration under
18 U.S.C. § 1001?
A. Civil penalty only up to $10,000
B. Fine and/or imprisonment up to 5 years
C. Seizure of goods only
D. Revocation of import privileges for 1 year
Answer: B. Fine and/or imprisonment up to 5 years
Rationale: 18 U.S.C. § 1001 makes it a felony to knowingly and willfully make a
false statement in any matter within the jurisdiction of the federal government,
including customs declarations. Penalties include a fine and/or imprisonment for
up to 5 years.
Question 8
The "country of origin" for customs purposes is defined as:
A. The country where the goods are shipped from
B. The country where the goods are manufactured, produced, or substantially
transformed
C. The country where the final invoice is issued
D. The country of the seller's headquarters
Answer: B. The country where the goods are manufactured, produced, or
substantially transformed
Rationale: For customs purposes, country of origin is the country where the goods
underwent their last substantial transformation, resulting in a new and different
article of commerce. Mere shipment or invoicing from a country does not
determine origin.
Question 9
Which of the following is a "restricted merchandise" that requires a special license
or permit for importation?
