1. The invoice that corresponds to an actual shipment is called the commercial invoice. 
*a. True
b. False

2. The main billing document in a shipment is the pro forma invoice. 
a. True
*b. False

3. An export license can be used by a country to control the outflow of certain goods. 
*a. True
b. False

4. A consular invoice can be considered a trade barrier. 
*a. True
b. False

5. A specialized commercial invoice is considered a trade barrier. 
a. True
*b. False 

6. The Electronic Export Information is required for export parcels valued at more than $500 that are sent through the postal system. 
*a. True
b. False

7. Most End-Use Certificates are provided by the governments of exporting countries. 
a. True
*b. False

8. Export quotas can be used to control scarce resources or prices of products for which a country has a monopoly. 
*a. True
b. False

9. A country may use import documents to enact a protectionist policy. 
*a. True
b. False

10. A Certificate of Origin must be signed by the importers chamber of commerce. 
a. True
*b. False

11. A Certificate of Manufacture is similar to a Certificate of Origin. 
*a. True
b. False

12. A uniform bill of lading is used for inland transportation. 
*a. True
b. False

13. A packing list always accompanies a shipment. 
*a. True
b. False

14. A manifest is an internal document of the shipping company that is not examined by government entities. 
a. True
*b. False

15. Bolero is an international document transmission system that offers payment capability. 
a. True
*b. False

16. Bolero does not use a shared EDI network, but is proprietary. 
a. True
*b. False

17. Among other things, tariff rates are determined based on the shipments weight. 
*a. True 
b. False

18. Export quotas can be used to control scarce resources or prices of products for which an exporting  country faces heavy competition. 
a. True
*b. False

19. An import license is usually provided by an independent laboratory or independent inspection company attesting to composition of certain shipped products. 
a. True
*b. False

20. A consular invoice is a regular commercial invoice printed on stationery provided by a country and visa-ed by its consulate in the exporters country. 
*a. True
b. False

21. An experienced exporter knows that the U. S. government almost always checks the paperwork that the exporter provides to the importer. 
a. True
*b. False

22. A careful preparation of all of the documents by the exporter helps the importer tremendously when it is time to clear Customs. 
*a. True
b. False


1. The commercial invoice
~ The commercial invoice is sent with the shipment, it is separate from a letter of credit, can be issued in any currency, and it has no connection to an export license. 
@ The commercial invoice is sent with the shipment, it is separate from a letter of credit, can be issued in any currency, and it has no connection to an export license. 
a. is sent ahead of the shipment. 
b. is the same thing as a letter of credit. 
c. replaces the need for an export license. 
d. is always issued in the exporters currency. 
*e. is sent with the shipment. 

2. A government will use a(n) _____ to attempt to control the export of national treasures or antiques. 
~ An export license is used by governments to either control the export of national treasures or antiques or to exert some control over foreign trade for political or military reasons. 
@ An export license is used by governments to either control the export of national treasures or antiques or to exert some control over foreign trade for political or military reasons. 
*a. export license. 
b. consular invoice. 
c. Uniform Commercial Code. 
d. duty. 
e. pro forma invoice. 

3. The United States export policy is mostly concerned about 
~ The U. S. is not concerned about the ability of countries to afford what they are importing, the spread of disease, the protection of intellectual property (a private good), nor is it concerned about other countries regulations. The U. S. wants to ascertain that the goods are purchased for legitimate commercial purpose and that there is no risk of diversion. 
@ The U. S. is not concerned about the ability of countries to afford what they are importing, the spread of disease, the protection of intellectual property (a private good), nor is it concerned about other countries regulations. The U. S. wants to ascertain that the goods are purchased for legitimate commercial purpose and that there is no risk of diversion. 
*a. keeping some military technologies away from some countries.  
b. stopping exports of non-essential items to countries that cannot afford them.  
c. regulating exports to countries that have strong import regulations. 
d. preventing the spread of agricultural diseases and pests outside of the U. S. 
e. preventing the sale of intellectual property to countries that do not protect it. 

4. In 1996, the _____ was revised to a U. S. export policy stating that everything is authorized unless it is specifically prohibited. 
~ The Export Administration Regulations contain the Commerce Control List, which details which commodities and products can and cannot be shipped to certain countries. 
@ The Export Administration Regulations contain the Commerce Control List, which details which commodities and products can and cannot be shipped to certain countries. 
a. Destination Control Statement. 
*b. Export Administration Regulations. 
c. pro-forma invoice. 
d. Electronic Export Information. 
e. Customs exports. 

5. A product not on the Commerce Control List, or whose Export Control Classification Number does not call for an export license, is classified as
~ NLR, EEI, BIS, and ICC are not classifications of an ECCN. The correct answer is EAR99, a classification that needs to be included on the SED. 
@ NLR, EEI, BIS, and ICC are not classifications of an ECCN. The correct answer is EAR99, a classification that needs to be included on the SED. 
a. NLR. 
b. EEI. 
c. BIS. 
d. ICC. 
*e. EAR99. 

6. Which of the following pieces of information does an international commercial invoice contain?
~ Incoterms, a precise description of the product, its physical dimensions, and terms of payment are contained in a commercial invoice in international trade. 
@ Incoterms, a precise description of the product, its physical dimensions, and terms of payment are contained in a commercial invoice in international trade. 
a. Incoterms rule of the transaction
b. a precise description of the product
c. terms of payment
d. weight and measurements of the product 
*e. all answers in this response set are data that would be included in an international invoice. 

7. The pro forma invoice
~ A pro-forma invoice is not a true invoice (it is a quote), and the expiration date on a pro forma invoice is very important. A pro forma invoice must be written very carefully, as what information is included will also be present in the letter of credit and the final commercial invoice should not vary from it. It therefore cannot be subject to change. It is not a certificate of title. 
@ A pro-forma invoice is not a true invoice (it is a quote), and the expiration date on a pro forma invoice is very important. A pro forma invoice must be written very carefully, as what information is included will also be present in the letter of credit and the final commercial invoice should not vary from it. It therefore cannot be subject to change. It is not a certificate of title. 
a. fulfills the same functions as a commercial invoice. 
*b. must be written with extreme care to avoid discrepancies between the letter of credit and the commercial invoice. 
c. does not have an expiration date. 
d. is written in such a way that the importer knows that it is subject to change. 
e. is a certificate of title for the goods. 

8. Even when validated export licenses are not required, exporters are responsible for determining if there are red flags in a transaction, such as
~ CAny of these situations are issues constituting a red flag. 
@ Any of these situations are issues constituting a red flag. 
a. a cash sale for a product generally purchased on credit terms. 
b. the product is sold to a company that does not appear to be in the exporters main line of business. 
c. the importer appears on the BISs List of Specially Designated Nationals. 
d. the product does not seem to be purchased for a commercial use. 
*e. any of the reasons in this answer set can be considered a "red flag" by the BIS. 

9. The sentence This merchandise licensed by U. S. for ultimate destination [country]. Diversion contrary to U. S. Law prohibited is 
~ The correct answer is Destination Control Statement. 
@ The correct answer is Destination Control Statement. 
a. a Commerce Control List. 
b. the Fenwick Anti-Terrorist Amendment of the Export Administration Act. 
c. the List of Specially Designated Nationals. 
d. the "Denied Persons' List. "
*e. the Destination Control Statement. 

10. Which of the following is not a reason for a country to require specific import documents?
~ Import documents are needed to keep out shoddy goods (certificate of inspection), their classification and value (invoice), and to determine the country of origin (certificate of origin). They play no role in determining income taxes. 
@ Import documents are needed to keep out shoddy goods (certificate of inspection), their classification and value (invoice), and to determine the country of origin (certificate of origin). They play no role in determining income taxes. 
a. to keep out shoddy goods. 
b. to determine appropriate tariff classifications. 
c. to help determine imported goods values. 
*d. to assess the correct income tax. 
e. to determine the country of origin of the goods. 

11. In addition to being a contract of carriage and a receipt for the goods, an ocean bill of lading is
~ An ocean bill of lading is also a certificate of title, which is the document that the shipping company will need to see to authorize the release of the goods in the port of destination. 
@ An ocean bill of lading is also a certificate of title, which is the document that the shipping company will need to see to authorize the release of the goods in the port of destination. 
*a. a certificate of title. 
b. a substitute for a Certificate of Insurance. 
c. an Incoterm. 
d. an insurance contract. 
e. a packing list for the carrier. 

12. Which of the following regulate shipments of dangerous goods by ocean?
~ The International Maritime Dangerous Goods Code regulates the shipment of dangerous goods by ocean. 
@ The International Maritime Dangerous Goods Code regulates the shipment of dangerous goods by ocean. 
a. the SWIFT. 
b. the U. S. Code of Federal Regulations. 
*c. the International Maritime Dangerous Goods Code. 
d. the Export Administration Regulations. 
e. the International Chamber of Commerce. 

13. Export taxes
~ Several countries require exporters to pay an export tax on certain commodities. 
@ Several countries require exporters to pay an export tax on certain commodities. 
a. protect importers from fraudulent exporters. 
b. are certified by the exporters chamber of commerce. 
*c. may be used when the shipped goods are minerals in short supply, or when the product has been heavily subsidized by the government. 
d. are collected by many governments in an attempt to control exports. 
e. are only collected when the country suspects that exporters are fraudulently exporting prohibited goods. 

14. Under two of Incoterms Rules, ________ has to provide the importer with a Certificate of Insurance. 
~ Two Incoterms Rules (CIP and CIF) require the exporter to obtain a Certificate of Insurance and provide it to the importer. 
@ Two Incoterms Rules (CIP and CIF) require the exporter to obtain a Certificate of Insurance and provide it to the importer. 
a. the insurance company of the exporter. 
b. the carrier. 
c. the Customs authorities in the exporting country. 
*d. the exporter. 
e. the Customs authorities in the importing country. 

15. In most cases, an intermodal bill of lading
~ An intermodal bill of lading is often straight, which is one where the name of the consignee is specified. 
@ An intermodal bill of lading is often straight, which is one where the name of the consignee is specified. 
a. is illegal. 
b. is an Incoterms Rule. 
*c. is a straight bill of lading. 
d. is regulated by the International Maritime Dangerous Goods Code. 
e. is a negotiable bill of lading. 

16. An air waybill
~ An air waybill is always straight and non-negotiable. 
@ An air waybill is always straight and non-negotiable. 
*a. is always straight. 
b. is also used in ocean transportation. 
c. serves as an individual validated export license. 
d. can serve as a shippers export declaration. 
e. is a negotiable bill of lading. 

17. EDI is
~ All of these characteristics apply to an EDI. 
@ All of these characteristics apply to an EDI. 
a. Electronic Data Interchange. 
b. an electronic exchange of documents from computer to computer. 
c. based upon a legal agreement between sender and recipient. 
d. a method to send documents electronically
*e. all answers in this response set apply to EDI

18. An EEI is
~ An EEI is the Electronic Export Information, a set of data that is collected by US customs from all exports worth more than $2,500. 
@ ~ An EEI is the Electronic Export Information, a set of data that is collected by US customs from all exports worth more than $2,500. 
a. an Incoterm. 
b. a proprietary commercial electronic data interchange. 
c. a manifest. 
d. a certificate of title. 
*e. A document required of exporters by U. S. Customs. 

19. End-Use Certificates
~ End-Use Certificates are documents that certify that the product is going to be used for a legitimate purpose, such as military training, and that the product will not be diverted to another, less acceptable task. Most of these are provided by the governments of the importing country. 
@ End-Use Certificates are documents that certify that the product is going to be used for a legitimate purpose, such as military training, and that the product will not be diverted to another, less acceptable task. Most of these are provided by the governments of the importing country. 
a. are provided by the governments of the exporting country. 
*b. certify that the product is going to be used for a legitimate purpose. 
c. must be signed by the exporters chamber of commerce. 
d. are certified by the carrier of the goods. 
e. are provided by the exporter to the importing countrys authorities. 

20. A Certificate of Certification
~ A Certificate of Certification attests that the goods meet the requirements of the importing countrys standards. 
@ A Certificate of Certification attests that the goods meet the requirements of the importing countrys standards. 
a. defines the technical characteristics of a good before it can be imported. 
b. may be written by an independent company. 
c. may be written by a trade association. 
*d. attests that the goods meet the technical requirements of the importing country. 
e. attests that the goods meet the technical requirements of the exporting country. 

21. For an exporter, one way to avoid having to pay for amendments to a letter of credit is to
~ Although packing lists and EEIs are important, the only discrepancies necessitating the payment of an amendment on a letter of credit are the ones between the letter of credit, based on the pro forma invoice and the actual commercial invoice. 
@ Although packing lists and EEIs are important, the only discrepancies necessitating the payment of an amendment on a letter of credit are the ones between the letter of credit, based on the pro forma invoice and the actual commercial invoice. 
a. prepare the packing list particularly carefully. 
b. make sure that the Electronic Export Information has been filed. 
*c. prepare the pro forma invoice particularly carefully. 
d. make sure that the carrier provides an accurate manifest. 
e. prepare the manifest very carefully. 

22. For an American exporter, one way to avoid delays in the port of departure in the United States is to
~ The United States will not allow goods to be loaded if there are issues with the export paperwork (EEI). 
@ The United States will not allow goods to be loaded if there are issues with the export paperwork (EEI). 
*a. make sure that the Electronic Export Information has been filed on time. 
b. make sure that the number of original invoices and bills of lading is at least five.  
c. make sure that the invoice has been visa-ed by the consulate of the importing country. 
d. make sure that the packing list has been written in the language of the importing country. 
e. make sure that the carrier has signed the bill of lading. 


Type: F
1. A commercial invoice favored by countries attempting to accurately forecast needs for foreign currency is called a(n) ____________________ invoice. 
a. consular

Type: F
2. The invoice that corresponds to an actual shipment is called the ____________________ invoice. 
a. commercial

Type: F
3. The United States requires that ____________________ Export Information is submitted by the exporter before shipment. 
a. Electronic

Type: F
4. An express authorization by a given countrys government to export a specific product before it is shipped is called a(n) ____________________ license. 
a. export

Type: F
5. One of the requirements for a U. S. shippers export declaration is for exports valued at more than ____________________ per item category. 
a. $2,500
b. $2500

Type: F
6. A document sometimes requested by the importer that is signed by an independent third party attesting to authenticity and accuracy of a shipment is a Certificate of ____________________. 
a. Inspection

Type: F
7. A(n) ____________________ license is designed to prevent the import of non-essential or overly luxurious products in developing countries with a short supply of foreign currency. 
a. import

Type: F
8. A Phyto-Sanitary Certificate is for ____________________ products and foodstuffs. 
a. agricultural

Type: F
9. A bill of ____________________ is a fundamental international shipping document in ocean transportation. 
a. lading

Type: F
10. A detailed Shippers Letter of Instruction can be critical in ____________________ shipments. 
a. livestock
b. refrigerated
c. animals
d. live animal
e. temperature controlled

Type: F
11. Failure to have the correct number of original invoices and the proper paperwork can delay customs ____________________ in the importing country. 
a. clearance

Type: F
12. If the ____________________ is not filed in time with U. S. Bureau of Customs and Border Protection, the shipment will not be allowed to leave the port of departure. 

a. EEI
b. Electronic Export Information