CUSECO Exam Prep: Certified US Export Compliance Officer/CUSECO Exam prep
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Question 1
Regarding the Destination Control Statement (DCS), which of the following is true?
A) The DCS in the EAR is identical to the DCS in the ITAR
B) The DCS in the EAR is different than the DCS in the ITAR
C) The DCS is only required for shipments to Sanctioned Countries
D) The DCS must be signed by the foreign prime minister
E) The DCS is no longer required under the Export Control Reform
Correct Answer: B) Different than the DCS in the ITAR
Rationale: While both the EAR and ITAR require a Destination Control Statement on
shipping documents, the specific verbiage and the scope of items they cover differ. ITAR
123.9(b) and EAR 758.6 have distinct requirements, although recent harmonization efforts
have brought them closer, they remain technically separate requirements within their
respective regulations.
Question 2
When is a Form DSP-83 (Non-Transfer and Use Certificate) required to be submitted?
A) For all EAR99 exports to Canada
B) For exports of all unclassified items on the CCL
C) With license applications for exports of classified technical data, classified defense articles,
and significant military equipment (SME)
D) Only when exporting to non-NATO countries regardless of item type
E) For every temporary export under a DSP-73
Correct Answer: C) Required with license applications for exports of classified technical
data, classified defense articles, and significant military equipment
Rationale: Per ITAR 124.10 and 123.10, the DSP-83 is a critical document used to ensure
that the foreign end-user, the foreign consignee, and the foreign government (for classified
items) agree not to re-export or transfer the items without prior U.S. government approval.
Question 3
Which resource is considered the most authoritative and best way to keep track of proposed and
final regulatory changes regarding US trade controls?
A) The New York Times
B) The Federal Register
C) Monthly corporate newsletters
D) Wikipedia
E) The local Chamber of Commerce
Correct Answer: B) The Federal Register
Rationale: The Federal Register is the official daily publication for rules, proposed rules,
and notices of Federal agencies and organizations. It is the legal mechanism by which the
, Page 2
U.S. government provides public notice of changes to the ITAR (State Dept) and the EAR
(Commerce Dept).
Question 4
Where is the United States Munitions List (USML) located?
A) Part 774 of the EAR
B) Within the Harmonized Tariff Schedule
C) Contained in the ITAR (22 CFR Part 121)
D) In the Office of Foreign Assets Control (OFAC) website
E) In the Internal Revenue Code
Correct Answer: C) Contained in the ITAR
Rationale: The USML is the list of articles, services, and related technical data designated as
defense articles and defense services pursuant to the Arms Export Control Act. It is
specifically codified in 22 CFR Part 121.
Question 5
What is the primary legal function of the DSP-83 under the ITAR?
A) It acts as a shipping invoice
B) It is a tax exemption certificate
C) It serves as a non-transfer and use certificate
D) It is used to apply for a permanent resident card
E) It authorizes the payment of commissions to foreign brokers
Correct Answer: C) A non-transfer and use certificate
Rationale: The DSP-83 is specifically designated to capture the agreement of the foreign
parties to adhere to the non-transfer and use restrictions imposed by the U.S. government
on Significant Military Equipment (SME) or classified data.
Question 6
When submitting a BIS license application for National Security (NS) controlled items to
Indonesia, what documentation is generally required?
A) A letter from the U.S. Governor of the state of origin
B) A Statement by Ultimate Consignee and Purchaser and an Import/End-user Certificate issued
by the IC/DV authority of the country
C) Only a copy of the commercial invoice
D) A signed DSP-5 form
E) A copy of the company's annual report
Correct Answer: B) Generally requires a Statement by Ultimate Consignee and Purchaser
and an Import/End-user Certificate issued by the IC/DV authority of the country
Rationale: Under EAR Part 748, certain National Security controlled items require an
Import Certificate/Delivery Verification (IC/DV) or a Statement by Ultimate Consignee
(BIS-711) to provide the U.S. government with assurances regarding the intended end-use
and to prevent unauthorized diversion.
, Page 3
Question 7
Which number must be entered on the Automated Export System (AES) filing to identify the
statistical classification of the goods?
A) The ECCN
B) The USML Category
C) The Schedule B Number
D) The Social Security Number of the CEO
E) The Purchase Order Number
Correct Answer: C) Entered on the AES filing
Rationale: The Schedule B number is a 10-digit numeric code used by the U.S. Census
Bureau to collect and compile export statistics. It is a mandatory data element for most
AES filings.
Question 8
What is a mandatory requirement regarding foreign consignees under the EAR's Europe-
wide/Global Export License Authorization (ELA)?
A) Consignees may be added at any time without notification
B) All (foreign) consignees receiving items under the ELA must be pre-approved
C) Only NATO members are eligible, regardless of approval
D) Consignees must be U.S. citizens living abroad
E) ELA is only for internal company transfers
Correct Answer: B) All (foreign) consignees receiving items under the ELA must be pre-
approved
Rationale: Export License Authorizations (special licenses) usually come with strict
conditions. To ensure national security and prevent diversion, the BIS requires that every
foreign entity receiving sensitive items under such an authorization be vetted and pre-
approved by the agency.
Question 9
How does the definition of "Exporter" compare between the EAR and the Foreign Trade
Statistics Regulations (FTSR/FTr)?
A) They are identical in all circumstances
B) They are different when the export is a 'routed transaction'
C) The FTSR does not use the term 'Exporter'
D) The EAR definition is only for defense articles
E) The EAR only applies to foreign persons
Correct Answer: B) Different when the export is a 'routed transaction'
Rationale: In a 'routed transaction' (where the Foreign Principal Party in Interest/FPPI
directs the shipment), the FTSR identifies the USPPI as the exporter for statistical
purposes, whereas the EAR allows for a different party (such as a U.S. agent) to be the
exporter for compliance purposes if they assume responsibility.
, Page 4
Question 10
Which of the following describes a Distribution Agreement (DA) under the ITAR?
A) A contract to distribute defense articles from the US to an approved sales territory
B) A contract to distribute defense articles manufactured and reexported abroad to an approved
sales territory
C) A contract to distribute defense articles exported from the US to a distribution point abroad
for redistribution to an approved sales territory
D) All of the above
E) None of the above; DA only applies to EAR items
Correct Answer: D) All of the above
Rationale: ITAR 120.23 defines a DA as an agreement to establish a warehouse or
distribution point abroad for the redistribution of defense articles. It covers items exported
from the U.S. or manufactured abroad under a Manufacturing License Agreement (MLA).
Question 11
Which documentation is typically required on U.S. export shipments?
A) AES filing, Export License application, and a Certificate of Origin (CofO) for import
clearance at destination
B) Only a handwritten note from the exporter
C) A copy of the ITAR Part 121 list
D) The driver's license of the freight forwarder
E) A valid U.S. passport for every item in the box
Correct Answer: A) AES filing, Export License application, CofO for reasons of import
clearance at destination
Rationale: Export compliance requires a combination of U.S. reporting (AES), proof of
authorization (License), and destination-country requirements (Certificate of Origin for
customs/duties).
Question 12
Under the ITAR, what is the definition of a "Retransfer"?
A) The transfer of defense articles and defense services from one country to another
B) The transfer of defense articles and services from one end-user to another in the same country
C) The same as a reexport
D) All of the above
E) None of the above
Correct Answer: D) All of the above
Rationale: Retransfer (or reexport) is defined in ITAR 120.51/120.52 as the movement of a
defense article to any destination, end-use, or end-user other than those described in the
original license or agreement.
Question 13
What is SNAP-R (Simplified Network Application Process-Redesign)?
Questions and Answers Practice Questions with Solutions Newest | Already
Graded A+
Question 1
Regarding the Destination Control Statement (DCS), which of the following is true?
A) The DCS in the EAR is identical to the DCS in the ITAR
B) The DCS in the EAR is different than the DCS in the ITAR
C) The DCS is only required for shipments to Sanctioned Countries
D) The DCS must be signed by the foreign prime minister
E) The DCS is no longer required under the Export Control Reform
Correct Answer: B) Different than the DCS in the ITAR
Rationale: While both the EAR and ITAR require a Destination Control Statement on
shipping documents, the specific verbiage and the scope of items they cover differ. ITAR
123.9(b) and EAR 758.6 have distinct requirements, although recent harmonization efforts
have brought them closer, they remain technically separate requirements within their
respective regulations.
Question 2
When is a Form DSP-83 (Non-Transfer and Use Certificate) required to be submitted?
A) For all EAR99 exports to Canada
B) For exports of all unclassified items on the CCL
C) With license applications for exports of classified technical data, classified defense articles,
and significant military equipment (SME)
D) Only when exporting to non-NATO countries regardless of item type
E) For every temporary export under a DSP-73
Correct Answer: C) Required with license applications for exports of classified technical
data, classified defense articles, and significant military equipment
Rationale: Per ITAR 124.10 and 123.10, the DSP-83 is a critical document used to ensure
that the foreign end-user, the foreign consignee, and the foreign government (for classified
items) agree not to re-export or transfer the items without prior U.S. government approval.
Question 3
Which resource is considered the most authoritative and best way to keep track of proposed and
final regulatory changes regarding US trade controls?
A) The New York Times
B) The Federal Register
C) Monthly corporate newsletters
D) Wikipedia
E) The local Chamber of Commerce
Correct Answer: B) The Federal Register
Rationale: The Federal Register is the official daily publication for rules, proposed rules,
and notices of Federal agencies and organizations. It is the legal mechanism by which the
, Page 2
U.S. government provides public notice of changes to the ITAR (State Dept) and the EAR
(Commerce Dept).
Question 4
Where is the United States Munitions List (USML) located?
A) Part 774 of the EAR
B) Within the Harmonized Tariff Schedule
C) Contained in the ITAR (22 CFR Part 121)
D) In the Office of Foreign Assets Control (OFAC) website
E) In the Internal Revenue Code
Correct Answer: C) Contained in the ITAR
Rationale: The USML is the list of articles, services, and related technical data designated as
defense articles and defense services pursuant to the Arms Export Control Act. It is
specifically codified in 22 CFR Part 121.
Question 5
What is the primary legal function of the DSP-83 under the ITAR?
A) It acts as a shipping invoice
B) It is a tax exemption certificate
C) It serves as a non-transfer and use certificate
D) It is used to apply for a permanent resident card
E) It authorizes the payment of commissions to foreign brokers
Correct Answer: C) A non-transfer and use certificate
Rationale: The DSP-83 is specifically designated to capture the agreement of the foreign
parties to adhere to the non-transfer and use restrictions imposed by the U.S. government
on Significant Military Equipment (SME) or classified data.
Question 6
When submitting a BIS license application for National Security (NS) controlled items to
Indonesia, what documentation is generally required?
A) A letter from the U.S. Governor of the state of origin
B) A Statement by Ultimate Consignee and Purchaser and an Import/End-user Certificate issued
by the IC/DV authority of the country
C) Only a copy of the commercial invoice
D) A signed DSP-5 form
E) A copy of the company's annual report
Correct Answer: B) Generally requires a Statement by Ultimate Consignee and Purchaser
and an Import/End-user Certificate issued by the IC/DV authority of the country
Rationale: Under EAR Part 748, certain National Security controlled items require an
Import Certificate/Delivery Verification (IC/DV) or a Statement by Ultimate Consignee
(BIS-711) to provide the U.S. government with assurances regarding the intended end-use
and to prevent unauthorized diversion.
, Page 3
Question 7
Which number must be entered on the Automated Export System (AES) filing to identify the
statistical classification of the goods?
A) The ECCN
B) The USML Category
C) The Schedule B Number
D) The Social Security Number of the CEO
E) The Purchase Order Number
Correct Answer: C) Entered on the AES filing
Rationale: The Schedule B number is a 10-digit numeric code used by the U.S. Census
Bureau to collect and compile export statistics. It is a mandatory data element for most
AES filings.
Question 8
What is a mandatory requirement regarding foreign consignees under the EAR's Europe-
wide/Global Export License Authorization (ELA)?
A) Consignees may be added at any time without notification
B) All (foreign) consignees receiving items under the ELA must be pre-approved
C) Only NATO members are eligible, regardless of approval
D) Consignees must be U.S. citizens living abroad
E) ELA is only for internal company transfers
Correct Answer: B) All (foreign) consignees receiving items under the ELA must be pre-
approved
Rationale: Export License Authorizations (special licenses) usually come with strict
conditions. To ensure national security and prevent diversion, the BIS requires that every
foreign entity receiving sensitive items under such an authorization be vetted and pre-
approved by the agency.
Question 9
How does the definition of "Exporter" compare between the EAR and the Foreign Trade
Statistics Regulations (FTSR/FTr)?
A) They are identical in all circumstances
B) They are different when the export is a 'routed transaction'
C) The FTSR does not use the term 'Exporter'
D) The EAR definition is only for defense articles
E) The EAR only applies to foreign persons
Correct Answer: B) Different when the export is a 'routed transaction'
Rationale: In a 'routed transaction' (where the Foreign Principal Party in Interest/FPPI
directs the shipment), the FTSR identifies the USPPI as the exporter for statistical
purposes, whereas the EAR allows for a different party (such as a U.S. agent) to be the
exporter for compliance purposes if they assume responsibility.
, Page 4
Question 10
Which of the following describes a Distribution Agreement (DA) under the ITAR?
A) A contract to distribute defense articles from the US to an approved sales territory
B) A contract to distribute defense articles manufactured and reexported abroad to an approved
sales territory
C) A contract to distribute defense articles exported from the US to a distribution point abroad
for redistribution to an approved sales territory
D) All of the above
E) None of the above; DA only applies to EAR items
Correct Answer: D) All of the above
Rationale: ITAR 120.23 defines a DA as an agreement to establish a warehouse or
distribution point abroad for the redistribution of defense articles. It covers items exported
from the U.S. or manufactured abroad under a Manufacturing License Agreement (MLA).
Question 11
Which documentation is typically required on U.S. export shipments?
A) AES filing, Export License application, and a Certificate of Origin (CofO) for import
clearance at destination
B) Only a handwritten note from the exporter
C) A copy of the ITAR Part 121 list
D) The driver's license of the freight forwarder
E) A valid U.S. passport for every item in the box
Correct Answer: A) AES filing, Export License application, CofO for reasons of import
clearance at destination
Rationale: Export compliance requires a combination of U.S. reporting (AES), proof of
authorization (License), and destination-country requirements (Certificate of Origin for
customs/duties).
Question 12
Under the ITAR, what is the definition of a "Retransfer"?
A) The transfer of defense articles and defense services from one country to another
B) The transfer of defense articles and services from one end-user to another in the same country
C) The same as a reexport
D) All of the above
E) None of the above
Correct Answer: D) All of the above
Rationale: Retransfer (or reexport) is defined in ITAR 120.51/120.52 as the movement of a
defense article to any destination, end-use, or end-user other than those described in the
original license or agreement.
Question 13
What is SNAP-R (Simplified Network Application Process-Redesign)?
