Midterm Essentials of Freight Forwarding.pptx

Midterm Essentials of Freight Forwarding.pptx

1. Welcome to class . We will begin shortly

2. Midterm Review

3. A commercial invoice is an itemized list of articles included in each shipping package, giving the quantity, description, item numbers, model numbers and weight of the contents, as well as dimensions, and net and gross weights of the shipping packages. False

4. Lumber used as dunnage materials not required to comply with any phytosanitary requirements in the country of destination and also possibly any countries where the goods are transshipped. False

5. BN: Business number

6. _____________ monitors the trade in certain goods and ensures the personal security of Canadians and citizens of other countries by restricting trade in dangerous goods and other materials. EICB

7. Unitizing is the assembly of one or more items into a compact load, secured together and provided with skids and cleats for ease of handling. True

8. In Canada, the Canadian Wood Products Certification Program (CWPCP) is a regulatory certification program that allows Canadian wood packaging producers and treatment facilities to produce wood packaging products that meet the ISPM 15 standards. True

9. CRA: Canada Revenue Agency

10. PARS: Pre-arrival Review System

11. RMD Release on minimum documents

12. The export declaration provides Canadian government agencies with valuable statistical information regarding our imports. False

13. ______________________________________________ authorizes under the discretion of the Minister of International Trade, the import and export of goods restricted by quotas and/or tariffs. EICB

14. The commercial invoice is one of the most important documents in a trade transaction. In Canada, the commercial invoice should be in English or in French. True

15. CFIA: Canadian Food Inspection Agency

16. The _____________________________ will retrieve and verify that all shipments have in fact arrived. On receipt of this verification, the forwarder will issue and release the Customs advice notes/manifests designated as A8A forms Sufferance warehouse

17. EDI is another electronic method for reporting inventory. False

18. For export shipments, if the consignee and/or the destination country requires a fumigation certificate, the document will be issued by the company performing the fumigation, usually on its letterhead. True

19. Palletizing is the assembly of one or more packages on a pallet base and the securing of the load to it. True

20. Import permits are not required by Canada Customs for commodities that are under import control False

21. The ICL has over 550 specified items and is continually updated, with commodities being removed and added. False

22. The PARS is a system allowing the free movement of goods across borders and their temporary importation into a Customs territory with relief from duties and taxes. False

23. A copy of an on-board bill of lading is sometimes requested by the inspection agency prior to release of the CRF. True

24. At the request of the importer or as stipulated in a letter of credit, an inspection of the goods may have to be performed at the importer’s premises prior to crating and shipping. False

25. Customer order selection may be referred to as order picking. It involves the accurate and timely selection of a product for shipment from the warehouse. True

26. An FDA prior notice is not a requirement additional to Customs requirements when shipping foodstuffs to the U.S.A False

27. The pre-arrival processing system (PAPS) is the American expedited cargo release mechanism somewhat equivalent to the Canadian PARS True

28. No goods are prohibited from entering Canada False

29. CERS is a paid web-based self-service for submitting electronic export declarations. False

30. Statistics Canada and the Canada Border Services Agency (CBSA) launched the CERS in 2020, after decommissioning the CAED program for Import data purpose False

31. E-Z Pass is an American electronic toll collection tool that can be used by cars and trucks to pay for highway or bridge tolls in the U.S. True

32. Air Freight: All consolidations must be removed to a private warehouse to achieve the deconsolidation process. False

33. The goal of the G7 EDI is not to allow traders to use the same information required for export reporting in one country as for import reporting in another. False

34. Under the Customs Act, importers and exporters are required to keep records for up to 5 years. False

35. Marks and symbols are the Identification on the outside of a shipping packages that enable the carrier to move it to its ultimate consignee in a safe and responsible manner. True

36. Replenishment is the process of relocating goods from a bulk storage area to an order-pick storage area True

37. Imported goods can be placed in a Customs bonded warehouse for a period of up to 6 years if the goods are imported on a consignment basis, they serve as inventory, or they are to be re-exported False

38. Public warehouses require only long-term contracts; customers thus avoid long-term commitments to real estate etc. In addition, a firm employing a public warehouse does not have to hire or lay off warehouse employees as the volume of business fluctuates. False

39. Improper or incomplete submissions of the export declaration won’t result in penalties. False

40. Single shipments that do not require deconsolidation are often Customs cleared directly from the airline’s facility True

41. An export declaration is not required for goods with a final destination in the U.S. for U.S consumption. True

42. Prior to releasing any in-bond removal request or Customs advice notes to the sufferance warehouse or Customs brokers, the forwarder verifies the shipment or consolidation status with the warehouse. False

43. A Queen’s warehouse is one that is used to store seized, forfeited, detained, abandoned, and unclaimed goods before they are released or disposed of by the CBSA pursuant to the Customs Act. These warehouses are operated by Canada Customs. True

44. Sufferance warehouses are licensed according to 3 main types: A, B, C. False

45. Several studies have identified inadequate packaging and improper marking of air cargo as the leading causes of air cargo losses. It is in these areas that the forwarder can effectively influence the sound arrival of his client’s goods. True

46. If correct shipper’s invoices and supporting documents are not available, even single shipments will be moved to the private warehouse to reduce storage charges that may be incurred, pending receipt of the required documents. False

47. Exporters, too, must keep records for a period of 4 years following the exportation of commercial goods. False

48. Bonded warehouse facility is also referred to as a Queen’s warehouse. True

49. The Air carriers have a 9000-series carrier code False

50. All cargo must comply with the technical requirements of the plane and the decisions of the load master. True

51. PARS program introduces more effective risk management processes and tools to identify threats to our health, safety, and security prior to the arrival of cargo and conveyances in Canada,” reads the CBSA website. False

52. The forwarder will always call the carrier to confirm the status of the shipment and will release the sufferance warehouse instructions only when informed that the shipment is confirmed on board the designated flight. True

53. If goods are not claimed from the sufferance warehouse till 30 days, they are transferred to a place of safekeeping. False

54. Goods may remain in a sufferance warehouse and not be cleared for Customs for up to 90 days. False

55. Ocean carriers will notify forwarders of the arrival of a shipment and will assign a unique cargo control number to the shipment. True

56. Cargo-handling equipment and techniques in the various airports and seaports of the world range from highly professional to primitive and totally unskilled. True

57. Import shipments must be cleared through border service, which assesses duties and taxes where applicable. The basis for this process is the packing list. False

58. Sufferance warehouses are privately owned and operated facilities licenced by the CBSA for the control, short-term storage, and examination of imported goods until they are released by CBSA or exported from Canada True

59. Bonded warehouses are generally used for the short-term storage of imported goods. These facilities don’t provide a deferral of duties and taxes. False

60. Duties and taxes become payable only on the portion of goods that are Customs cleared for entry in the Canadian market. True

61. Goods may not undergo any value-added alterations while stored in a bonded warehouse. False

62. As ocean carriers are able to issue their arrival advice as soon as the vessel leaves the port of origin, it makes Customs clearance through PARS very swift. True