Export License and Regulations
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Questions and Answers

What is an export license?

  • A permission to import a specific product from another country
  • An express authorization by a government to export a specific product before it is shipped (correct)
  • A certificate of end-use for export products
  • A document required for all exports to the United States

    • Which of the following products may require an export license?

  • Textile products
  • National treasures, antiques, or works of art (correct)
  • Common household goods
  • Food products

    • Who is responsible for ensuring that goods can be legally exported from the United States?

  • The importer
  • The Department of Defense
  • The exporter (correct)
  • The Bureau of Industry and Security

    • What is the purpose of the Commerce Control List?

    <p>To classify products that require an export license</p> Signup and view all the answers

    What is an Export Control Classification Number (ECCN)?

    <p>A code for products that require an export license</p> Signup and view all the answers

    Which products do not require an export license?

    <p>Products classified as EAR99</p> Signup and view all the answers

    Which government agency administers the Export Administration Regulations (EAR)?

    <p>Bureau of Industry and Security</p> Signup and view all the answers

    What determines if an export needs a license in the United States?

    <p>The type of product exported, the person or entity purchasing the product, and the ultimate country of destination</p> Signup and view all the answers

    What lists must exporters check to determine if the purchaser of an EAR99 product is subject to export controls?

    <p>The Entity List, The Unverified List, The Specially Designated Nationals and Blocked Persons List, and The Denied Persons List</p> Signup and view all the answers

    How many countries have a total embargo, and no products can be exported to them?

    <p>5</p> Signup and view all the answers

    What is required for products that have obtained a Validated Export License?

    <p>A Destination Control Statement</p> Signup and view all the answers

    What is the purpose of the Export Electronic Information (EEI) declaration?

    <p>To tabulate what products are exported from the United States, and to which countries they are exported</p> Signup and view all the answers

    Which of the following countries does not require an EEI declaration for shipments?

    <p>Canada</p> Signup and view all the answers

    What is the minimum value of a shipment that requires an EEI declaration?

    <p>$2,500 or more per item</p> Signup and view all the answers

    Which of the following lists is not mentioned in the context of export controls?

    <p>The Terrorist List</p> Signup and view all the answers

    What is the purpose of an Individual Validated Export License?

    <p>To obtain express authorization to ship to a country</p> Signup and view all the answers

    What is the main purpose of an End-Use Certificate?

    <p>To ensure the product is used for acceptable purposes</p> Signup and view all the answers

    Why do governments control their exports?

    <p>When the commodity is scarce or their country is one of the few producers</p> Signup and view all the answers

    What is a Certificate of Origin?

    <p>A document that attests that the goods originated from the country in which the exporter is located</p> Signup and view all the answers

    What is the purpose of an export quota?

    <p>To limit the quantity of a specific commodity that can be exported</p> Signup and view all the answers

    Who determines which party is responsible for arranging pre-carriage, main carriage, or on-carriage according to Incoterms rules?

    <p>The Incoterms rule</p> Signup and view all the answers

    What is a Certificate of Manufacture?

    <p>A document that attests that the goods were manufactured in the country in which the exporter is located</p> Signup and view all the answers

    Why do some exporting countries require exporters to pay an export tax?

    <p>To generate revenue from the export of certain commodities</p> Signup and view all the answers

    What is true about standard agreements in contracts of carriage?

    <p>They can include the costs of loading and unloading</p> Signup and view all the answers

    What type of bill of lading is issued when the goods are received in good condition?

    <p>Clean bill of lading</p> Signup and view all the answers

    What is the purpose of Import Documents?

    <p>To facilitate the importation of goods</p> Signup and view all the answers

    What is the main difference between a Certificate of Origin and a Certificate of Manufacture?

    <p>One attests to the country of origin, the other attests to the country of manufacture</p> Signup and view all the answers

    What is the purpose of the box called 'consignee' on a bill of lading?

    <p>To identify the firm that will take delivery of the goods</p> Signup and view all the answers

    What type of bill of lading is said to be negotiable?

    <p>Ocean bill of lading with a blank or 'to order' consignee box</p> Signup and view all the answers

    What happens when the goods are sold while they are being transported?

    <p>The owner of the goods in the destination port is the entity with the original bill of lading</p> Signup and view all the answers

    What is required by letters of credit?

    <p>A clean bill of lading</p> Signup and view all the answers

    What type of bills of lading are always negotiable?

    <p>Ocean bills of lading</p> Signup and view all the answers

    What type of lease is an ACMI lease classified as?

    <p>Damp lease</p> Signup and view all the answers

    What is the primary purpose of a packing list?

    <p>To detail the contents of a shipment</p> Signup and view all the answers

    What is the main difference between a packing list and a manifest?

    <p>A packing list is generated by the shipping company, while a manifest is prepared by the exporter</p> Signup and view all the answers

    What is the purpose of a Shipper's Letter of Instruction?

    <p>To instruct the carrier on how to handle the goods during transit</p> Signup and view all the answers

    What regulates the shipment of dangerous goods by air?

    <p>International Civil Aviation Organization's Technical Instructions for the Safe Transport of Dangerous Goods by Air</p> Signup and view all the answers

    What is Electronic Data Interchange (EDI) used for?

    <p>To exchange electronic documents from computer to computer</p> Signup and view all the answers

    What is the main difference between a damp lease and a wet lease?

    <p>A damp lease provides additional services beyond the aircraft, while a wet lease does not</p> Signup and view all the answers

    Why is a manifest frequently requested by Customs authorities?

    <p>To verify the contents of a shipment</p> Signup and view all the answers

    Study Notes

    Export Documents

    • An export license is an express authorization by a country's government to export a specific product before it is shipped.
    • Types of products that may need an export license include national treasures, antiques, works of art, products controlled for political or military purposes, and scarce natural resources.

    U.S. Export Controls

    • The U.S. export control policies focus on three elements to determine if an export needs a license: the type of product exported, the person or entity purchasing the product, and the ultimate country of destination.
    • The Bureau of Industry and Security maintains a Commerce Control List, which assigns an Export Control Classification Number (ECCN) to products of concern to the U.S.
    • Products that may be potentially dangerous or have "dual use" require a license, while those classified as EAR99 do not.
    • Even if a product is classified as EAR99, exporters still need to determine if the purchaser is on one of several lists, including the Entity List, Unverified List, Specially Designated Nationals and Blocked Persons List, and Denied Persons List.
    • The U.S. government considers some countries "friendly" and others "unfriendly," with total embargos on countries like Cuba, Iran, North Korea, Sudan, and Syria, and limits on what can be shipped to other countries.

    Destination Control Statement

    • A Destination Control Statement is required for products that have obtained a Validated Export License, stating that the merchandise is licensed for ultimate destination to a specific country and that diversion contrary to U.S. law is prohibited.

    Export Electronic Information

    • The Export Electronic Information (EEI) declaration is a data-collection process used to tabulate what products are exported from the U.S. and to which countries they are exported, required for shipments worth $2,500 or more per item.

    End-Use Certificate

    • An End-Use Certificate is a document required by some exporting countries for sensitive exports, such as ammunition, to ensure that the product is used for acceptable purposes.

    Export Taxes and Quotas

    • Some countries require exporters to pay an export tax on certain commodities, and export quotas are limits set by the exporting country's government on the quantity of a specific commodity that can be exported in a given year.

    Import Documents

    • A Certificate of Origin is a document provided by the exporter's chamber of commerce that attests that the goods originated from the country in which the exporter is located.
    • A Certificate of Manufacture is a document provided by the exporter's chamber of commerce that attests that the goods were manufactured in the country in which the exporter is located.

    Bill of Lading

    • A Bill of Lading is a receipt for the goods, and there are two alternatives when the carrier receives the goods: a clean bill of lading if the goods are received in good condition, or a soiled bill of lading with an annotation of any issues.

    Letters of Credit and Shipments

    • A Bill of Lading can be negotiable or straight, depending on whether the consignee is left blank or specified.
    • Letters of credit always call for a clean bill of lading.

    Packing List and Manifest

    • A Packing List is a document prepared by the exporter that lists out what a shipment contains in great detail.
    • A Manifest is a document generated by the shipping company that lists all cargo onboard the transportation vehicle.

    Shipper's Letter of Instruction

    • A Letter of Instruction is a document in which the shipper spells out how it wants the carrier to handle the goods while they are in transit, including specifications for temperature, feeding, and stowing.

    Dangerous Goods

    • Shipments of dangerous goods are regulated by international codes and regulations, requiring additional documents and specific stowing instructions.

    Electronic Data Interchange (EDI)

    • Electronic Data Interchange (EDI) is the electronic exchange of documents from computer to computer, used for trade-related transactions.

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    Related Documents

    International Commercial Documents.Slides.pptx

    Description

    This quiz covers the basics of export licenses, including what types of products require a license, destination control statements, and shipper's export declarations.

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