Customs Brokerage- Exam Questions with Correct Answers Latest Version (Already Passed)

Customs Brokerage- Exam Questions with Correct Answers Latest Version (Already Passed) Canada Revenue Agency - Answers Administers tax laws from federal government, pensions plans, social and economic plans - Excise act, income tax Customs brokers - Answers Intermediaries between government and importers, make it easier to comply with regulations Sub agent - Answers is an agent appointed by another agent to act at a POE where there is no office General agency agreement - Answers Agreement that states a broker can act as an agent on behalf of the firm Importer - Answers Party responsible for paying of duties and taxes on goods Carrier - Answers a transporter that facilitates movement, rail, air, trucking Vendor - Answers Companies outside Canada that ship goods to Canada Freight forwarder - Answers Arrange for movement of goods and paperwork CBSA - Answers Part of public safety, manages borders and facilitation of people and goods, laws governing trade and travel and administer policy and law BSO's - Answers Work for CBSA, administer AMPS, review documentation, make sure duties and taxes are payed AMPS - Answers Administrative monetary penalty system that are civil penalties, when people don't comply wth legislation, AKA ensures compliance In order not to get AMPS - Answers Comply with Customs Act and Customs tariffs Customs Act - Answers Type of legislation; Sec 99 gives authority to search, seize, and examine goods, laws on importing and exporting from the country Customs Tariff - Answers Type of legislation; Authority, and relief from payment of duties Excise Act 2001 - Answers Legislation; Excise duty on spirits, wine, tobacco manufactured in Canada or imported in Excise Act - Answers Legislation: tax on beer manufactured or imported into Canada Excise tax Act - Answers Authority to charge, collect and administer GST/HST GST - Answers Collected by vendors and businesses, they have to register These are exempt from GST - Answers Zero rated supplies, non taxable, input tax credits, exempt supplies HST - Answers Tax collected on casual and non commercial importations; ON, PEI, NS, NFL, NB Special Import Measures Act (SIMA) - Answers Anti dumping and anti subsidization measures to protect Canadian industry Dumping - Answers selling products in a foreign country at lower prices than those charged in the producing country Subsidizing - Answers Goods imported into Canada benefit from the government assisted money D memoranda - Answers For public and CBSA use, finalized memoranda and legislation Restricted memoranda (R) - Answers Private use for CBSA; security and intelligence matters Bills of lading - Answers Contract between shipper and carrier; straight - Non negotiable, going to one location or person negotiable - can be sold, not going to a specific destination clean - goods are in good condition Initial Importation document (CCI) - Answers Canada's Custom invoice Form completed with info about goods that are being shipped to Canada Commercial invoice - Answers Can be used instead of CCI as long as all information is present ACI (Advanced Commercial Information) - Answers Made for marine risk assessment Cargo and conveyance data is sent to CBSA prior to the arrival of goods EDI - Answers Electronic data interchange: the computer-to-computer exchange of business documents from a retailer to a vendor and back A8A(B) Cargo control document - Answers Paper version of the EDI PARS Pre arrival system - Answers Importer or broker provides information sent to CBSA prior to arrival of goods so CBSA can release them upon arrival CIRO (courier) - Answers Imports remission order; allows goods to be exempt from duty and GST must not be over 20.00 PIRO (postal) - Answers Imports remission order; allows goods to be exempt from taxes and duties, must not be oner 20.00 Queens warehouses - Answers Owned and operated from CBSA, where forfeited goods, sized and detained goods go. 40 days of notice to fix or reverse the paperwork, then 30, and then the Crown owns the products Release process - Answers Release goods, account goods, pay duties and taxes ACROSS - Answers System to received electronic transmitted release and invoice data from custom brokers and importers Machine release system (Part of ACROSS) - Answers Provides automated release decision for low risk shipments RMD (Release minimum documentation) - Answers Release procedure; Once packaged goods have arrived in Canada and on hand - Provides minimum amount of data - Entry package and duties taxes payed later PARS Pre arrival system - Answers Release procedure; Used before goods arrive at the border, submission of release data prior to arrival - Duty and taxes are paid later CSA (Customs self assessment) - Answers Release procedure; designed for low risk, pre approved importers, carriers, registered drivers - Can use streamline process to enter their goods into Canada - Ensure legal compliance FAST (Free and secure trade program) - Answers CAN/USA partnership - Allows commercial shipments to have fewer delays - Enhances border and trade chain security - Offered to pre approved importers, carriers, registered drivers Release - Answers Goods are forwarded to destination Reject - Answers Goods are not released until proper paperwork is completed and corrected Seize - Answers Goods are confiscated Import control list - Answers List of Goods that need an import permit