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Three basic limitations to carrier liability for cargo loss or damage found in industry-standard
terms and conditions are:
1. Liability is limited to actual value of the cargo loss.
,2. Liability is limited to a maximum value per package or shipment weight as imposed by law
and/or the
contract of carriage.
3. The loss must occur through carrier negligence.
The shipper's airwaybill will typically include the service and charge for pick-up and all other
requested services to complete the shipment to the delivery point for which the shipper is
responsible.
True
All original bills of lading, properly endorsed, must be surrendered back to the shipping line
at destination in exchange for delivery of the cargo.
False
A general average occurs when a vessel sinks (i.e., there is a complete loss to the vessel and
all cargo on board).
False
In the U.S., the presentation of an ATA carnet to a U.S. customs officer at the time of export
exempts such export from the requirement for transmission of a U.S. export declaration (EEI)
unless such export is subject to the requirement for a U.S. export license.
True
The Destination Control Statement (DCS), when required, uses the same language regardless
of whether the export is controlled by BIS (Commerce Department) or DOS (State
Department).
True
There are two categories of "precursor chemicals" subject to export controls, one under the
EAR with "chemical and biological weapons" as the reason for control and the other subject
to DEA regulation under the Controlled Substances Act.
True
Having an E & O insurance policy lessens the need by a forwarder for appropriate liability
limitation in its standard terms and conditions.
False
When a party (person and/or company) is found to have violated the EAR or other U.S.
export law or regulations, a fine and/or seizure of the illegal export are two of the
administrative sanctions available to BIS.
, What is the other type of administrative sanction that BIS can impose?
Denial Order
If a cargo insurance policy states "on application" in the commodity schedule for the type of
cargo to be shipped, the assured must obtain advance approval from the insurance company
in order to have such shipment insured under the policy.
True
An insurer may reject a claim under cargo insurance if faulty packing or marking contributed
to the loss or damage.
True
A rebate by ocean carrier is illegal only when paid to a shipper, consignee or other party with
beneficial interest in the cargo, and not to a forwarder.
False
B/L instructions should show the rate basis code for each commodity shipped to help assure
that when the B/L is issued it will show the correct freight charges.
True
Who must always sign a certificate of origin?
The exporter or the agent thereof
NLR must not be used when the GBS license exception is applicable.
True
Collection instructions should always state "Protest" for non-payment or non-acceptance.
False
When an L/C specifies a sight draft be used to draw funds, and the negotiating bank finds all
documents compliant with the L/C's terms, the beneficiary will typically receive payment
from the issuing bank within 10-15 days.
False
With respect to cargo insurance claim procedures, the insurance policy will provide specified
time limits in which the assured must:
1. Submit a formal claim specifying amount claimed supported by proof of loss
documentation.
2. Notify the insurance carrier following discovery of loss.
, 3. File a lawsuit to pursue an unsettled claim.
An airfreight forwarder's function is to make all the arrangements necessary to move a
shipment from the shipper or supplier's door to the consignee's door or other place of delivery
within the period of time specified by its customer.
True
Absent a system of common carriage, all "for hire" ocean shipping would revert to contract
carriage, with each shipper having to negotiate rates and conditions of service separately with
each carrier.
True
How should you proceed with Schedule B classification of products for which the shipper's
description is very general or vague (e.g., "auto parts," "building materials," "medical
device")?
Contact the shipper for more specific description(s) before proceeding.
If imported goods arrive in wood packaging that is not ISPM-15 certified, the shipment may
be refused entry and the importer fined regardless of whether the wood actually contains
insects.
True
An international air carrier may reject a claim for damage if the shipper's packaging was
inadequate to safeguard the contents from damage resulting from the normal rigors of the
intended transportation, and there is no evidence of mis-handling by carrier.
True
In the case of a routed export transaction where the FPPI has expressly assumed
responsibility as exporter under the EAR, the USPPI must, upon request of the FPPI, provide
ECCN(s) or sufficient technical information to determine classification.
True
The "all-risks clause" under an open cargo insurance policy means that all commodities are
insured for loss or damage from all commercial risks.
False
Costs being equal, typically the shipper is better served by a single through intermodal bill of
lading rather than separately contracting for each segment of needed transportation.
True