Customs and logistics

Q1: Fill in the blank: The alphanumeric code that determines whether a U.S. export requires a license is called the _____, while low-risk items not on the Commerce Control List are designated as _____.

Q2: A compliance audit reveals that your company has been using the same HS classification code (6203.42.40) for both 100% cotton shirts and cotton-polyester blend shirts for two years. The cotton shirts qualify for this code with a 15% duty rate, but the blend should be classified as 6203.43.40 with a 25% duty rate. Your company imported 500 blend shirts valued at $50 each. Calculate the total duties underpaid (before interest and penalties). ``` Formula: Underpaid Duties = Quantity × Value × (Correct Rate - Used Rate) ```

Q3: Under the WTO Valuation Agreement, if the transaction value method cannot be used, what is the next method that should be applied?

Q4: The process of getting goods through customs so they can legally enter or leave a country is called {{1}}, and typically requires payment of applicable {{2}} and {{3}}.

Q5: A company repeatedly imports the same product monthly. Each time, customs extensively inspects and delays the shipment. To build trust and receive expedited processing, they should consider applying for a {{1}} trader program such as {{2}}.