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customs > Part 2 > Flashcards

Part 2 Flashcards

1
Q

Which of the following provides relief against the imposition of certain duties of customs and other charges?

a. The Customs Act
b. The Customs Tariff Act
c. The Excise Act
d. The Excise Tax Act
e. The Special Import Measures Act

A

b. The Customs Tariff Act

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2
Q 
General Interpretive Rule \_\_\_\_\_\_\_\_\_ provides for the classification of goods under the heading which occurs last in numerical order.
Response:
a. GIR 2(b)
b. GIR 3(a)
c. GIR 3(b)
d. GIR 3(c)
e. GIR 5(a)
A

d. GIR 3(c)

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3
Q 
Goods in the \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ tend to be organized in the order of their technological complexity.
Response:
a. Customs Act
b. Customs Notices
c. Customs D Memoranda
d. Customs Tariff
e. Import Control List
A

d. Customs Tariff

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4
Q

GIR 1 states that titles of Sections, Chapters and sub-Chapters are provided for ease of reference only.
Response:
a. True
b. False

A

a. True

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5
Q

The tariff treatment determines the final rate of duty applied to imported goods.
Response:
a. True
b. False

A

a. True

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6
Q 
The NAFTA specific rules of origin are based on the \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ of the finished good.
Response:
a. end use
b. price paid
c. degree of manufacture
d. tariff classification
e. value for duty
A

d. tariff classification

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7
Q

The Customs Tariff Act allows for the transshipment of goods that are exported to Canada from another country. Which of the following is not a condition under the rules for transshipment?
Response:
a. The goods must remain under Customs control in the intermediate country.
b. In order that they remain in good condition, the goods may be unloaded in the intermediate country.
c. The goods do not enter into the commerce of the intermediate country.
d. In order that they remain in good condition, the goods may be repackaged in the intermediate country.
e. The goods may remain in temporary storage in the intermediate country for an indefinite period.

A

e. The goods may remain in temporary storage in the intermediate country for an indefinite period.

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8
Q

Which of the following may preclude the use of the transaction method of valuation?
Response:
a. The imported goods were sold.
b. The foreign vendor is a GST registrant.
c. The purchaser and vendor are related.
d. The goods are sold for export to Canada.
e. The price paid or payable can be determined.

A

c. The purchaser and vendor are related.

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9
Q 
A \_\_\_\_\_\_\_\_\_\_\_\_\_ is a person who acts on behalf of the vendor, performing such functions as taking orders, arranging delivery and seeking out customers.
Response:
a. Selling Agent
b. Buying Agent
c. Double Agent
d. Commission Agent
e. Revenue Agent
A

a. Selling Agent

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10
Q

Under the Special Import Measures Act, normal value refers to the ________________________________ .
Response:
a. gross price at which goods in question are purchased, between related parties, in the country of export
b. net price at which the goods in question are sold, between unrelated purchasers and vendors, in the country of export
c. price paid or payable for the goods by a purchaser in Canada
d. cost of production of the goods in question
e. value of goods once Customs duty has been applied

A

b. net price at which the goods in question are sold, between unrelated purchasers and vendors, in the country of export

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11
Q

Non-residents must register for the GST/HST when they make taxable supplies of admissions in Canada for a place of amusement, a seminar, an activity, or an event held in Canada, even if they are a small supplier.

a. True
b. False

A

a. True

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12
Q 
The method by which a non-registered non-resident importer may allow his Canadian customer to recover the GST paid at time of importation is called the \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
Response:
a. Follow Through Method
b. Flow Through Method
c. Claw Back Method
d. GST Recovery Method
e. Down Stream Method
A

b. Flow Through Method

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13
Q 
Which of the following is not a part of the Customs Tariff Act?
Response:
a. Prohibited Goods
b. Consequential Amendments
c. Duties Relief
d. Drawback Provisions
e. Transitional Provisions
A

d. Drawback Provisions

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14
Q

Only subheadings at the same level are comparable.
Response:
a. True
b. False

A

a. True

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15
Q 
GIR \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ applies to goods that are a combination of materials.
Response:
a. 2
b. 3
c. 6
d. 1
e. 5
A

b. 3

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16
Q 
An American company manufactures jewellery cases made of wood that are classified in tariff item 4420.90.00. The wood is of U.S. origin, but the boxes are decorated with paint that originates in Germany. The paint is classified in tariff item 3213.90.90. What NAFTA origin criterion applies to the jewellery cases when they are imported into Canada?
Response:
a. Criterion A
b. Criterion B
c. Criterion C
d. Criterion D
e. Criterion E
A

b. Criterion B

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17
Q

Under the __________________________ and a transitional period of up to 15 years, Canada will eliminate Customs duties on imported ships and floating structures.
Response:
a. Canada – Peru Free Trade Agreement
b. Canada – Columbia Free Trade Agreement
c. Canada – Chile Free Trade Agreement
d. Canada – European Free Trade Association Free Trade Agreement
e. Canada – Panama Free Trade Agreement

A

d. Canada – European Free Trade Association Free Trade Agreement

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18
Q

In order to use the NAFTA tariff treatment on imported casual goods, a NAFTA Certificate of Origin is required.
Response:
a. True
b. False

A

b. False

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19
Q

The De Minimis Rule provides for a finished good to originate as long as all non-originating parts and materials used to produce the good came from the United States or Mexico.
Response:
a. True
b. False

A

b. False

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20
Q

__________________ are not to be added to, or included in, the value for duty.
Response:
a. Subsequent proceeds
b. Assists
c. Royalties
d. License fees
e. Transportation costs from the place of direct shipment to Canada

A

e. Transportation costs from the place of direct shipment to Canada

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21
Q

A complaint of dumping may be filed regardless of the number of producers opposed to the complaint.
Response:
a. True
b. False

A

a. True

22
Q 
Once a complaint of dumping has been filed, CBSA has \_\_\_\_\_\_ business days to determine if the complaint is properly filed.
Response:
a. 30
b. 60
c. 90
d. 21
e. 14
A

d. 21

23
Q 
Zero-rated supplies are found in Part I, Schedule \_\_\_\_\_\_ of the \_\_\_\_\_\_\_\_\_\_\_\_\_\_.
Response:
a. VII; Customs Tariff
b. XI; Excise Act
c. XII; Customs Act
d. X; Excise Act 2001
e. VI; Excise Tax Act
A

e. VI; Excise Tax Act

24
Q

With respect to the Customs Tariff, which of the following answers best describes the term “prima facie”?
Response:
a. Unless the context otherwise requires
b. All things being equal
c. On the face of it, or as it appears to be
d. Among other things
e. In the correct order

A

c. On the face of it, or as it appears to be

25
Q 
The \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_provides the legislative authority for the Canada Border Services Agency to collect duty.
Response:
a. Excise Act
b. Excise Tax Act
c. Customs Act
d. Customs Tariff Act
e. Income Tax Act
A

c. Customs Act

26
Q

When a producer mixes originating and non-originating fungible goods, and physical identification of originating goods is impossible, the producer may determine the origin of the goods based on the goods which were FIFO (First In, First Out).
Response:
a. True
b. False

A

a. True

27
Q

An Advance Ruling may be requested in order to confirm whether goods originate under NAFTA.
Response:
a. True
b. False

A

a. True

28
Q

The methods of valuation for imported goods must be considered in sequential order. However, if the importer has advised CBSA, the _______________ and _________________ may be reversed.
Response:
a. Transaction Value of the Goods Method; Residual Method
b. Transaction Value of the Goods Method; Transaction Value of Identical Goods Method
c. Transaction Value of Identical Goods Method; Transaction Value of Similar Goods Method
d. Deductive Value Method; Computed Value Method
e. Deductive Value Method; Residual Method

A

d. Deductive Value Method; Computed Value Method

29
Q

When applying the Deductive Value Method, certain costs may be deducted to arrive at the price per unit. Which of the following is not a general expense?
Response:
a. Canadian duty and taxes
b. Commissions, profits and general expenses incurred in Canada
c. Foreign duty and taxes
d. Transportation, insurance and other costs related to the sale of the goods in Canada
e. Transportation, insurance and related costs incurred from the place of direct shipment to Canada

A

c. Foreign duty and taxes

30
Q

Subsidized goods are goods that __________________________________________________.
Response:
a. are sold to an importer at a price that is lower than what they are sold for in the exporting country. This is because the vendor and importer are related
b. are sold to an importer at a price that is lower than what they are sold for in the exporting country. This is because the government of the exporting country has provided payment to the exporter to assist in the production of the goods
c. are sold to an importer at a price that is higher than what they are sold for in the exporting country
d. are sold to an importer at the same price at which they are sold for in the exporting country
e. are sold to an importer a price that is lower than what they are sold for in the exporting country. This is because the vendor and importer are not related

A

Correct
b. are sold to an importer at a price that is lower than what they are sold for in the exporting country. This is because the government of the exporting country has provided payment to the exporter to assist in the production of the goods

31
Q

The use of SIMA code 10 on an import transaction means that __________________________________________ .
Response:
a. the goods are covered by a price undertaking
b. there is no provisional duty on the goods
c. there is provisional duty, but a bond has been posted
d. the goods are part of an expedited review and a bond has been posted
e. the goods are not subject to anti-dumping duty, but they have the same tariff classification as goods that are subject to anti-dumping duty

A

e. the goods are not subject to anti-dumping duty, but they have the same tariff classification as goods that are subject to anti-dumping duty

32
Q

Where both a Canadian term and an international term are used in the Customs Tariff, the commonly accepted meaning and scope of the international term takes precedence.
Response:
a. True
b. False

A

a. True

33
Q 
In order to be eligible to use a particular tariff treatment, the imported goods must originate in a country that is a party to that particular tariff treatment. Which section of the Customs Tariff Act provides the definition of originate?
Response:
a. Section 16
b. Section 17
c. Section 18
d. Section 19
e. Section 20
A

a. Section 16

34
Q

The ____________________ and the ________________________ are the two different methods for calculating the Regional Value Content of imported goods.
Response:
a. Transaction Value Method; Gross Cost Method
b. Net Cost Method; Production Cost Method
c. Net Cost Method; Finished Goods Method
d. Transaction Value Method; Net Cost Method
e. Transaction Value Method; Finished Goods Method

A

d. Transaction Value Method; Net Cost Method

35
Q 
The General Preferential Tariff (GPT) is closely related to the \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ .
Response:
a. BPT
b. LDCT
c. GT
d. CCCT
e. CCRFTA
A

b. LDCT

36
Q 
The \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ is the legislation that allows for the GST.
Response:
a. Excise Act
b. Customs Tariff Act
c. Customs Act
d. Excise Tax Act
e. Special Import Measures Act
A

d. Excise Tax Act

37
Q

HST is collected at time of importation to all commercial goods that are destined to a participating province, regardless of their point of entry into Canada.
Response:
a. True
b. False

A

b. False

38
Q

Input tax credits cannot be claimed for purchases of exempt supplies.
Response:
a. True
b. False

A

a. True

39
Q 
A company in Hawaii exports fresh pineapple, grown in Hawaii, to Canada. What NAFTA origin criterion applies to the pineapple when it is imported into Canada?
Response:
a. A
b. B
c. C
d. D
e. E
A

a. A

40
Q 
In Canada, a complete tariff classification number looks like this \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
Response:
a. 28.04.29
b. 2804.29.00
c. 2804.29.00.10
d. 2804.29.00.10.29
e. 2804.2900
A

c. 2804.29.00.10

41
Q 
After a tariff classification in one of chapters 1-97 has been established and the end use of the product meets the criteria of an item found in chapter 99, the first \_\_\_\_\_\_\_\_\_\_\_digits of the chapter 99 tariff item are added after the statistical suffix of the tariff classification.
Response:
a. ten
b. six
c. four
d. eight
e. two
A

c. four

42
Q

GIR1

A

GIR 1 indicates that section, chapter and sub-chapter titles have no legal status and are to be used as a reference only;
GIR 1 states that the tariff classification number must be determined by the heading, and any section or chapter notes;

43
Q

GIR2

A

GIR 2(a) advises that unfinished and/or incomplete articles are classified as if they are finished and/or complete, as long as they have the essential character of the complete or finished article;

GIR 2(b) advises that if a heading provides for a material or substance, it also provides for a mixture of that material or substance;
GIR 2(b) also advises that if a heading refers to a good or a material, it also includes goods made partly or wholly of that material;
44
Q

GIR3

A

GIR 3 includes three methods that must be applied in order;
GIR 3(a) states you must select the heading with the most specific description of the goods;
GIR 3(b) applies to mixtures of goods, and states that goods are classified as if they consisted of the material or component which gives them their essential character;
GIR 3(c) applies when goods cannot be classified in GIR 3(a) or 3(b); it states that the goods are classified in the heading which occurs last in numerical order;
GIR 4 advises that if the goods cannot be classified under rules 1 to 3, they may be classified in the heading for goods to which they are most alike;
GIR 5 provides for the classification of fitted cases and packing, such as bags, cartons, and crates; and
GIR 6 indicates that you may only compare subheadings that are at the same level.

45
Q

three Canadian General Interpretive Rules.

A
  1. For legal purposes, the classification of goods in the tariff items of a subheading or of a
    heading shall be determined according to the terms of those tariff items and any related
    Supplementary Notes and, mutatis mutandis, to the General Rules for the Interpretation of the
    Harmonized System, on the understanding that only tariff items at the same level are
    comparable. For the purpose of this Rule the relative Section, Chapter and Subheading
  2. Where both a Canadian term and an international term are presented in this Nomenclature,
    the commonly accepted meaning and scope of the international term shall take precedence.
  3. For the purpose of Rule 5 (b) of the General Rules for the Interpretation of the Harmonized
    System, packing materials or packing containers clearly suitable for repetitive use shall be
    classified under their respective headings.
46
Q

A complete HS classification consists of a ten-digit number, and looks like this:

A

Chapter (first 2 digits) = 08
Heading (first 4 digits) = 08.01
Subheading (first 6 digits) = 0801.22
Tariff Item (first 8 digits) = 0801.22.00
Classification Number (all ten digits) = 0801.22.00.00

47
Q

The phrase throughout the nomenclature means

A

The phrase throughout the nomenclature means that the definition, or other information provided where a particular term is first used can be applied anywhere in the tariff, and not only in the section or chapter in which the note appears. The nomenclature is any naming convention, in this case, the tariff.

48
Q

The phrases unless the context otherwise requires or except where the context otherwise requires is best explained by use of the following example from Section XV.

A

The phrases unless the context otherwise requires or except where the context otherwise requires
Section XV
The supplementary note to Section XV states: Unless the context otherwise requires, the expression “diameter’’, when applied to tubes and pipes, refers to the actual internal diameter.

49
Q

The term prima facie means

A

on the face of it, or as it appears to be.

6b to Chapter 61

  1. For the purpose of heading 61.11:
    (a) The expression “babies’ garments and clothing accessories” means articles for young children of a body height not exceeding 86 cm; it also covers babies’ napkins;
    (b) Articles which are, prima facie, classifiable both in heading 61.11 and in other headings of this Chapter are to be classified in heading 61.11.
50
Q

The term mutatis mutandis means

A

means all things being equal, and that respective differences must be considered. Refer to subheading Note 1 to Chapter 81 for an example of this phrase.

  1. Note 1 to Chapter 74, defining “bars and rods”, “profiles”, “wire” and “plates, sheets, strip and foil” applies, mutatis mutandis, to this Chapter.
51
Q

The term inter alia means

A

among other things, and that the classification is not restricted to what is listed. See Note 1 to Chapter 12.
Note 1 to Chapter 12

  1. Heading 12.07 applies, inter alia, to palm nuts and kernels, cotton seeds, castor oil seeds, sesamum seeds, mustard seeds, safflower seeds, poppy seeds and shea nuts (karite nuts). It does not apply to products of heading 08.01 or 08.02 or to olives (Chapter 7 or Chapter 20).

customs (5 decks)

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