Customs & International Economic Relations

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Questions and Answers

Which of the following best describes the primary function of customs affairs?

Promoting fair competition among domestic industries by setting production quotas.
Regulating international diplomacy and trade negotiations.
Managing currency exchange rates to stabilize the national economy.
Enforcing national laws related to imports, exports, and transit of goods. (correct)

A customs regime is solely determined by a country's geographical location and natural resources.

False (B)

Name three key elements typically included in the documentation required for customs clearance during foreign economic transactions.

Invoice, packing list, and bill of lading.

A ________ eliminates trade barriers between member countries and establishes a common external tariff policy.

customs union Signup and view all the answers

Which of the following is NOT a typical goal of customs control?

Maximizing domestic market share for local producers. (C) Signup and view all the answers

The 'most favored nation' (MFN) principle requires countries to offer the same trade concessions to all their trading partners.

True (A) Signup and view all the answers

What is the main difference between a free trade area and a common market?

A free trade area eliminates trade barriers among members; a common market also allows free movement of labor and capital. Signup and view all the answers

Which of these customs procedures is designed to verify the accuracy of declared information on imported goods after they have been released?

Post-clearance audit (C) Signup and view all the answers

A ________ is a tax or duty levied on goods when they cross international borders.

tariff Signup and view all the answers

Match the customs regimes with their key features:

Free Trade Zone = Goods can be stored, manipulated, and manufactured without being subject to duties. Bonded Warehouse = Goods can be stored without payment of duties until they are released into the market. Drawback = Refund of duties previously paid on imported goods that are subsequently exported. Transit = Movement of goods through a country without being subject to import duties, destined for another country. Signup and view all the answers

Flashcards

Structure of Customs Affairs

The organizational framework and hierarchy within a country responsible for enforcing customs laws and regulations.

Customs Regimes

Specific sets of rules and procedures governing the movement of goods across international borders.