Customs Specialist Qualification Examination flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Customs Law core duties

Supervision and control of goods and means of transport, collection of duties and taxes, anti-smuggling enforcement, and compilation of customs statistics.

Duty-payer liability timing

Liability attaches at the time of declaration; if goods are released before assessment, the payer must settle within the statutory period after the duty memorandum is issued.

Declaration error vs. smuggling

Technical declaration errors are correctable with low or no fine; smuggling involves concealment or false declaration and triggers confiscation plus fines or criminal referral.

Appeal path

A written administrative reconsideration application to the superior customs authority or same-level government, followed by administrative litigation in the people's court if needed.

Tariff-rate quota

A two-tier tariff where in-quota imports pay a lower rate and out-of-quota imports pay a higher rate; quota is allocated by application and historical performance.

Anti-dumping duty

A duty equal to the dumping margin, applied when dumped imports cause material injury to the domestic industry; it is time-limited and subject to sunset review.

Safeguard measure

An emergency, non-discriminatory restriction on fair trade when imports surge and cause serious injury; it requires compensation or consultation with trading partners.

Three pillars of tariff

Classification, valuation, and origin determine the duty payable; errors in any pillar change the duty and can trigger penalties.

Standard import declaration flow

Electronic data entry, customs review, duty payment, inspection if selected, release, and pickup; the declaration must be filed within the statutory period after arrival.

Inspection channel selection

Risk-based assignment: green channel for document review only, yellow for document review plus inspection, red for full inspection.

Advance declaration

Imports may be declared before arrival; goods can be released before duty payment if a guarantee is provided, with duty settled within the specified period.

Amendment and cancellation

Allowed for clerical errors or changed circumstances before release with customs approval; post-release corrections require formal application and may incur fees.

General Interpretative Rules order

GIR 1 heading text and notes, GIR 2 incomplete or unassembled goods, GIR 3 specificity or essential character, GIR 4 most akin, GIR 5 packing, GIR 6 subheadings.

GIR 3 tie-breakers

GIR 3(a) most specific description prevails; GIR 3(b) essential character for mixtures and sets; GIR 3(c) last in numerical order if both fail.

Substantial transformation tests

Change in tariff heading, value-added percentage, or specific process rules determine whether non-originating materials are sufficiently transformed to confer origin.

De minimis origin rule

A small percentage of non-originating materials is permitted without losing origin; the threshold varies by agreement and product.

Transaction value adjustments

Add commissions except buying commissions, royalties as a condition of sale, packing costs, and assists; exclude post-import costs and buyer-side costs.

Valuation fallback sequence

When transaction value is unavailable: identical goods, similar goods, deductive value, computed value, and finally the reasonable-means method.

Duty and VAT formula

Duty equals customs value times tariff rate; VAT base equals customs value plus duty plus consumption tax where applicable.

Late payment surcharge

Overdue duty incurs a surcharge commonly of 0.05 percent per day; underpayment discovered later may be recovered within the statutory limitation period.

Licensing categories

Prohibited goods cannot be traded; restricted goods need a license or permit; automatic licensing goods need registration but not discretionary approval.

Quarantine certificate

Plants, animals, food, and biological materials may require a phytosanitary or health certificate and pre-shipment inspection before release.

Dual-use export control

Items with both civilian and military applications require an export license and may need end-user statements for non-proliferation and national security.

Bonded warehouse duty timing

Imported goods are stored without duty payment; duty is assessed at the rate in effect on the date goods are withdrawn into the domestic market.

Processing trade balance rule

Enterprises must balance import and export quantities within the approved processing period; surplus or shortfall requires customs approval and duty settlement.

Special supervision area treatment

Goods entering from overseas are bonded; goods entering from the domestic market are treated as exports and may qualify for export tax rebates.

Customs audit types

Routine audit, special audit, and follow-up audit; customs may audit on-site or require self-inspection and document submission.

Voluntary disclosure effect

Timely and complete disclosure of errors before customs discovers them can reduce or waive penalties.

Reconsideration deadline

Administrative reconsideration must be filed within the statutory period, commonly 60 days from knowledge of the decision, before litigation.

Recordkeeping requirement

Declaration documents must be retained for a specified period, commonly three years; failure to retain records can result in fines.

Broker integrity duty

Customs brokers must act with integrity, accuracy, and confidentiality; false statements can result in license suspension or revocation.

Conflict of interest disclosure

Practitioners must disclose conflicts and may not accept benefits that influence declaration accuracy or classification decisions.