Export Compliance Flashcards
1
Q
- A company wishes to ship under available exceptions but cannot if:
Select one:
a. LVS and GBS are both available to the country of destination.
b. a license has already been issued.
c. if the company would be in violation of General Prohibition 10 in making the shipment.
d. none of the above.
A
c. if the company would be in violation of General Prohibition 10 in making the shipment.
2
Q
- A possible reason for exporting a product without applying for an export license is:
Select one:
a. EAR 99.
b. ECCN.
c. CCL.
d. none of the above.
A
Unknown
3
Q
- Our company wishes to fill an order for France which we determine is a sale to a denied person who is under a standard denial order. We:
Select one:
a. can ship if the goods are EAR 99.
b. cannot ship under any circumstances.
c. can ship under the appropriate license exception.
d. can ship with an export license.
A
Unknown
4
Q
- In retaining records under the EAR,
Select one:
a. it is possible to retain reproductions instead of originals.
b. we must always retain originals.
c. if reproductions are retained they need be retained for only six months.
d. only reproductions may be retained.
A
a. it is possible to retain reproductions instead of originals.
5
Q
- We have a request for a certificate of origin. We may lawfully state:
Select one:
a. “These products were made in the United States but contain no materials from Canada.”
b. “We at this time refuse to do business with Canada.”
c. “We hereby certify that we employ no one of Canadian ancestry.”
d. none of the above.
A
d. none of the above.
6
Q
- A shipment is exported from the United States to Italy on July 1 of this year. It arrives in Italy on August 1 and is then reexported to Poland on August 5. We are aware of that transaction. We expect that we would need to keep records on our export until:
Select one:
a. July 1, three years hence.
b. August 5, five years hence.
c. August 1, five years hence.
d. July 1, five years hence.
A
b. August 5, five years hence.
7
Q
- In exporting a product that is under the CCL but not controlled to our destination country, we would use:
Select one:
a. LVS
b. GBS
c. NLR
d. none of the above.
A
c. NLR
8
Q
- A product that is not enumerated in the CCL can qualify for:
Select one:
a. EXW - DDP
b. EXW - EAR 99
c. GBS - EAR 99
d. NLR - EAR 99
A
d. NLR - EAR 99
9
Q
- The current “diversion clause” is:
Select one:
a. “These commodities, technology or software were exported from the United States in accordance with the Export Administration Regulations. Diversion contrary to U.S. law prohibited.”
b. “These commodities are authorized for export under United States license. Diversion contrary to U.S. law prohibited.”
c. “These commodities licensed by the United States for ultimate destination (name of country). Diversion contrary to U.S. law prohibited.”
d. “These products licensed by the United States for ultimate destination (name of country). Diversion contrary to U.S. law prohibited.”
A
a. “These commodities, technology or software were exported from the United States in accordance with the Export Administration Regulations. Diversion contrary to U.S. law prohibited.”
10
Q
- Under the Foreign Corrupt Practices Act, a U.S. exporter is prohibited from:
Select one:
a. exporting to a country which permits bribes of government officials.
b. bribing a Customs official to permit the entry of its product.
c. making a gift to a prospective buyer who is unaffiliated with his government.
d. all of the above.
A
b. bribing a Customs official to permit the entry of its product.
11
Q
- A person may incur a civil penalty under 15 CFR 764.3 for:
Select one:
a. disclosing controlled technical data to a foreign national located within the United States.
b. making a donation to a foreign political party.
c. bribing a foreign government official to obtain a lower duty rate.
d. selling on a DDP basis.
A
a. disclosing controlled technical data to a foreign national located within the United States.
12
Q
- In determining if a license is needed for export of a controlled product, referring to General Prohibition 1, we must check:
Select one:
a. reasons for control, country chart, and license exceptions.
b. reasons for control, country chart, and record keeping requirements.
c. country chart, license exceptions, and units of measurement.
d. none of the above.
A
a. reasons for control, country chart, and license exceptions.
13
Q
- We have CIV, LVS ($2,000), and GBS as available exceptions for our shipment of $1,000 worth of product to China. We might be able to use the:
Select one:
a. CIV exception.
b. LVS exception.
c. GBS exception.
d. none of the above would apply.
A
a. CIV exception.
14
Q
- For an article controlled under NS 1, the review of the license application by BIS generally will include:
Select one:
a. an analysis of the kinds and quantities of items to be shipped.
b. the country of destination.
c. the intended end-use.
d. all of the above.
A
d. all of the above.
15
Q
- Material associated with the production of nuclear energy is controlled for reasons of NP 2 only. For a shipment of $5,000 of these goods to Bangladesh:
Select one:
a. from these facts alone, it can ship under CIV.
b. from these facts alone, it can cannot be shipped at all.
c. from these facts alone, it can ship under NLR.
d. from these facts alone, a license is required before shipment.
A
c. from these facts alone, it can ship under NLR.
16
Q
16. The RPL exception is used for: Select one: a. replication of software. b. one-for-one replacement of parts. c. replacement of an original encryption article. d. none of the above.
A
b. one-for-one replacement of parts.
17
Q
- Determining if a license is required under General Prohibition 1 and the CCL would include finding, in the following order:
Select one:
a. “X” in the country chart, ECCN number, any license exception.
b. ECCN number, any license exception, “X” in the country chart.
c. ECCN number, “X” in the country chart, any license exception.
d. none of the above.
A
c. ECCN number, “X” in the country chart, any license exception.
18
Q
- We know that an export license is not required if:
Select one:
a. the product is listed in the CCL.
b. the shipment has an EXW (our city) value of under $500.
c. all General Prohibitions have been examined and none restrict us.
d. the product is not listed in the CCL.
A
c. all General Prohibitions have been examined and none restrict us.
19
Q
- A possible penalty for violating the EAR is:
Select one:
a. revocation of export privileges.
b. monetary fine.
c. prison.
d. any of the above.
A
d. any of the above.
20
Q
- The General Prohibitions forbid:
Select one:
a. proceeding with an EXW sale without an export license.
b. proceeding with a transaction knowing that a violation will occur.
c. importing without an import license.
d. proceeding with a DDP sale without an export license.
A
b. proceeding with a transaction knowing that a violation will occur.
21
Q
- The parameters for EAR 99 may be found:
Select one:
a. in Category One of the CCL
b. in Category Two of the CCL
c. in Category Three of the CCL
d. any of the above.
A
d. any of the above.
22
Q
- We have a one-time shipment to Ecuador of $4,000 of product under ECCN 1C006 d.1.a and may ship:
Select one:
a. under license only.
b. under GBS exception.
c. under CIV exception.
d. under LVS exception.
A
b. under GBS exception.
23
Q
- An example of an SS control is:
Select one:
a. police helmets and shields.
b. horses by sea.
c. body armor, such as vests.
d. none of the above.
A
b. horses by sea.
24
Q
- The United States regulates exports because of:
Select one:
a. national security.
b. short supply.
c. foreign policy.
d. all of the above.
A
d. all of the above.
25
25. Assuming we have already overcome other prohibitions, a possible reason for exporting a product without applying for an export license is:
Select one:
a. the article is on the CCL but there is no X in the box to our destination country.
b. the article is not on the CCL.
c. no ECCN applies.
d. any of the above.
Unknown
26
26. Our export license application may be to export product based on a given quantity in:
Select one:
a. dollars.
b. kilograms.
c. units of product.
d. any of the above.
d. any of the above.
27
27. Possible penalties for violation of the EAR include:
Select one:
a. being placed on the DPL.
b. fines.
c. imprisonment.
d. any of the above.
d. any of the above.
28
```
28. An example of an embargoed country is:
Select one:
a. China.
b. North Korea.
c. The Netherlands.
d. Canada.
```
b. North Korea.
29
29. An example of an antiboycott violation is:
Select one:
a. providing a list of countries in which we have distributors for our product.
b. stating that our products are made in the U.S.A.
c. stating that our products are not made in a specific foreign country.
d. none of the above.
c. stating that our products are not made in a specific foreign country.
30
30. We have a request to pay a bribe to a foreign official. This would be a violation of the:
Select one:
a. BIS.
b. FCPA.
c. DPL.
d. EAR.
b. FCPA.
31
31. A major reason for a license application to not be approved is:
Select one:
a. article is not on the CCL.
b. inadequate cargo space available to the destination.
c. insufficient information.
d. insufficient profit.
c. insufficient information.
32
32. License applications are generally made on:
Select one:
a. SNAP-R
b. ECCN.
c. CCL.
d. SNAP.
a. SNAP-R
33
33. An AES filing can be made by:
Select one:
a. the exporter.
b. the freight forwarder.
c. either A or B.
d. neither A nor B.
c. either A or B.
34
34. A request can be fulfilled for:
Select one:
a. a certificate that no one of Canadian nationality or heritage is employed by our company.
b. a certificate that our company will not do business with anyone in Canada.
c. a certificate that our goods are made in the U.S.A. with no materials from Canada.
d. a certificate that our goods are made in the U.S.A. with materials from Canada.
d. a certificate that our goods are made in the U.S.A. with materials from Canada.
35
35. A document that can be used for transmitting information from exporter to freight forwarder.
Select one:
a. SLI.
b. CCL.
c. AES.
d. none of the above.
a. SLI.
36
36. We have an order from a DPL.
Select one:
a. We cannot ship.
b. We could ship if an exception applied to the ECCN and country of destination.
c. We could ship if we obtained an export license.
d. We could ship if it was a replacement part for an article already lawfully exported.
Unknown
37
37. A reason for U.S. export controls is:
Select one:
a. to prevent arms, high technology, and other products from reaching a country or person who would attempt to use them against the United States or its allies.
b. to comply with certain international agreements, such as embargoes.
c. because of certain unilateral (U.S. only) policies, such as embargoes.
d. all of the above.
d. all of the above.
38
38. The following is U.S. law:
Select one:
a. BIS
b. USC
c. CFR
d. EAR
b. USC
39
39. An agency that regulates some U.S. exports is:
Select one:
a. BIS
b. DDTC
c. Fish & Wildlife Service
d. all of the above
d. all of the above
40
40. An article is under an ECCN. We therefore know:
Select one:
a. it must have exceptions available in the ECCN listing.
b. it is controlled to all countries.
c. it is controlled to no countries.
d. it is on the CCL.
d. it is on the CCL.
41
41. A freight forwarder may be specified:
Select one:
a. by the seller.
b. by the buyer.
c. either A or B.
d. neither A nor B.
c. either A or B.
42
```
42. A Denied Party can be:
Select one:
a. in the U.S.
b. outside the U.S.
c. either A or B.
d. neither A nor B.
```
c. either A or B.
43
```
43. A little used control on the country chart is:
Select one:
a. MT.
b. NS.
c. LVS.
d. AT.
```
Unknown
44
44. A General Prohibition that can apply to banks and freight forwarders is:
Select one:
a. 1.
b. 5.
c. 7.
d. 6.
c. 7.
45
45. We are selling a controlled product to a foreign manufacturer under export license. We become aware that instead of using the product as a manufacturing material, he is reexporting it in its original form to a country to which it is subject to a U.S. export license. We ask him to obtain a U.S. license before doing so in the future, and he advises us that "I am subject only to the laws of my country and not to those of the United States" and will not do so. When the next order is ready under our existing export license, we must consider the provisions of General Prohibition:
Select one:
a. 8
b. 7
c. 4
d. 10
a. 8
46
46. A(n) ______________ occurs within the United States.
Select one:
a. arbitrary export.
b. localized export.
c. deemed export.
d. none of the above.
c. deemed export.
47
```
47. For a CIV exception, we would refer to:
Select one:
a. country group A.
b. country group B.
c. country group C.
d. country group D.
```
Unknown
48
48. On an EXW sale from the United States,
Select one:
a. the freight forwarder has the responsibility for export compliance.
b. the seller has the responsibility for export compliance.
c. the buyer has the responsibility for export compliance.
d. the seller and the buyer share the responsibility for export compliance.
b. the seller has the responsibility for export compliance.
49
49. The General Prohibitions address several processes, including:
Select one:
a. filing a Shipper's Export Declaration.
b. a transshipment which occurs via Russia.
c. how to file an export license application.
d. how to find an ECCN.
b. a transshipment which occurs via Russia.
50
50. You have a customer who orders two different products. Both are under the same ECCN and qualify for LVS - $2,000. You may do the following:
Select one:
a. ship up to $24,000 per year but no more than $12,000 of either product.
b. ship up to $4,000 per shipment of either or both products at a time.
c. ship up to $24,000 total per year of both products.
d. none of the above.
c. ship up to $24,000 total per year of both products.
51
10. We have an article that is controlled for reasons of NS only and wish to export to Germany. The GBS and CIV exceptions are available. We can expect to be able to use:
a. GBS only
b. CIV Only – there is no indication that it is going to be used for civilian purposes. So it is safer to go with GBS
c. Both
d. Neither
a. GBS only
52
12. If an article is not listed in the CCL,
a. it could still need a BIS license.
b. it will need an ITAR license
c. it can ship under any exception
d. None of the above
a. it could still need a BIS license.
53
16. "NLR" may be an article:
a. having no ECCN
b. not on the CCL
c. on the CCL, but with no appropriate"x" in the box for our desintation country
d. any of the above.
d. any of the above.
54
17. Examining the country chart, of the following, the most highly controlled articles (in terms of controlled to the most destinations) are for reasons of:
a. MT
b. NS2
c. AT
d. NP2
a. MT
55
18. If we use the buyer's ____________ we can have the responsibility for export compliance but have lost the control over it.
a. freight forwarder
b. carrier
c. customs broker
d. any of the above
d. any of the above
56
21. There is no de minimis level for some products
Select one:
a. under ECCN 3A001
b. under ECCN 4A994
c. under ECCN 5E002
d. under all of the above.
d. under all of the above.
57
23. For LVS shipments:
Select one:
a. the shipping costs are included in computing the value for LVS purposes.
b. an AES filing need never be done.
c. the shipping costs are not included in computing the value for LVS purposes.
d. none of the above.
c. the shipping costs are not included in computing the value for LVS purposes.
58
24. An order that exceeds the LVS dollar limit:
Select one:
a. may be returned to the buyer with a request to adjust the order to meet LVS specifications.
b. may be split.
c. may be split into multiple orders that will each be under the limit.
d. will not be eligible for the LVS exception.
d. will not be eligible for the LVS exception.
59
25. For an order under TSR, the exporter:
a. can ship immediately.
b. must notify BIS and wait ten days for the BIS to exercise its option to block the order.
c. must obtain written assurance from the buyer as to reexport or release of the technology.
d. none of the above.
c. must obtain written assurance from the buyer as to reexport or release of the technology.
60
1. Applications for export or temporary import licenses must always include:
Select one:
a. a certification letter
b. a DSP-83
c. a letter of intent
d. None of the above.
a. a certification letter
61
```
2. A type of protective personnel equipment that can be a defense article is:
Select one:
a. body armor
b. pressure suits
c. helemts
d. Any of the above.
```
d. Any of the above.
62
3. An end-item is:
Select one:
a. an article that has a use for which technical data is required.
b. an assembled article ready for its intended use.
c. an article that can be readied for its intended use by simply assembly.
d. None of the above.
b. an assembled article ready for its intended use.
63
4. An export license:
Select one:
a. is identical to an MLA.
b. is identical to a TAA.
c. is identical to a distribution agreement.
d. must bear the word license.
d. must bear the word license.
64
5. We must apply for an ITAR export license:
Select one:
a. not less than five days after we have shipped.
b. for some temporary exports
c. immediately after registration.
d. for all exports on the USML.
b. for some temporary exports
65
```
6. If we are unsure about whether or not our article is within the parameters of the USML, we can file a(n):
Select one:
a. BIS letter.
b. ITAR classification notice.
c. CJ Request.
d. None of the above.
```
c. CJ Request.
66
7. An export can be:
Select one:
a. sending, or taking a defense article out of the US in any manner, except by mere travel outisde of the US by a person whose personal knowledge includes technical data.
b. transferring registration of a satellite to a foreign person
c. transferring technical data to a foreign person, whether in the US or abroad.
d. Any of the above.
d. Any of the above.
67
8. Under ITAR, a Foreign Trade Zone is considered:
Select one:
a. outside the Customs Territory of the United States.
b. outside the geographic territory of the United States.
c. an integral part of the United States.
d. an integral part of the state or territory in which it is physically located.
c. an integral part of the United States.
68
```
9. Provisions of ITAR include
Select one:
a. licensing
b. registration
c. a defense article can be an item (physical) or technical data
d. All of the above.
```
d. All of the above.
69
10. An empowered official:
Select one:
a. may be an independent contractor
b. may be a freight forwarder, outside the applicant's company
c. must be directly employed by the applicant or a subsidiary.
d. None of the above.
c. must be directly employed by the applicant or a subsidiary.
70
11. The Empowered Official has the independent authority to:
Select one:
a. refuse to sign any license application
b. enquire into any aspect of a proposed temporary import by the applicant
c. verify the legality of an export transaction
d. All of the above.
d. All of the above.
71
12. Within the meaning of ITAR, a reexport is:
Select one:
a. previously imported product now being exported to the original country of export.
b. previously imported product now being exported to any destination country.
c. previously imported product now being exported to any destination except the original country of export.
d. transfer of a defense article to an end use, end user, or destination, not previously authorized.
Unknown
72
13. The temporary import of defense articles into the United States is regulated by:
Select one:
a. the Department of Defense
b. the Department of Justice
c. the Department of State
d. the Department of the Treasury
c. the Department of State
73
14. When an exemption is claimed for the export of unclassified technical data, the exporter must maintain a record including:
Select one:
a. a description of the unclassified technical data.
b. the date of its invention or creation.
c. the copyright data, if any.
d. the date of receipt of the data by the end-user.
a. a description of the unclassified technical data.
74
15. The following are countries which were original members of the Missile Technology Control Regime:
Select one:
a. the United States and the European Union.
b. the United States, the United Kingdom, the Federal Republic of Germany, and Italy.
c. the United States, the United Kingdom, the Federal Republic of Germany, and the then-Soviet Union.
d. the United States, Canada, and Mexico.
b. the United States, the United Kingdom, the Federal Republic of Germany, and Italy.
75
16. This is a type of export that may be made to some destinations without meeting the documentary requirements of 123.1 (c) (4) and (5) concerning purchase orders:
Select one:
a. firearms of .50 caliber or higher
b. associated technical data for commercial communications satellites
c. radar and sonar equipment
d. rifle scopes
b. associated technical data for commercial communications satellites
76
```
17. We will file a report on our ITAR export via:
Select one:
a. EAR
b. ACE
c. a 2032
d. No report is specifically required.
```
b. ACE
77
18. Registration fees:
Select one:
a. are fixed as identical for all registrants.
b. are payable only at the time of the first export in the registration period.
c. at time of renewal, may change based on the preceding 12 months.
d. None of the above.
c. at time of renewal, may change based on the preceding 12 months.
78
```
19. A person authorized by the U.S. government to conduct hearings in administrative proceedings is
Select one:
a. an empowered official
b. a presiding official
c. a prominent official
d. an entitiled official
```
b. a presiding official
79
20. Under ITAR, a person involved in brokering activities does not require a license for:
Select one:
a. brokering activities within NAFTA territory.
b. brokering activities on behalf of a U.S. or Canadian manufacturer.
c. brokering activities only on behalf of a U.S. manufacturer.
d. brokering activities undertaken for an agency of the U.S. government.
d. brokering activities undertaken for an agency of the U.S. government.
80
21. The current ITAR Destination Control Statement is:
Select one:
a. “These commodities licensed by the United States for ultimate destination (name of country). Diversion contrary to U.S. law prohibited.”
b. “These commodities, technology or software were exported from the United States in accordance with the Export Administration Regulations. Diversion contrary to U.S. law prohibited.”
c. "These items are controlled by the U.S. Government and authorized for export only to the country of ultimate destination for use by the ultimate consignee or end-user(s) herein identified. They may not be resold, transferred, or otherwise disposed of, to any other country or to any person other than the authorized ultimate consignee or end-user(s), either in their original form or after being incorporated into other items, without first obtaining approval from the U.S. Government or as otherwise authorized by U.S. law and regulations.”
d. “The commodities are authorized by the U.S. Government for export only to [country of ultimate destination] for use by [end-user]. They may not be transferred, transshipped on a non-continuous voyage, or otherwise be disposed of in any other country, either in their original form or after being incorporated into other end-items, without the prior written approval of the U.S. Department of State.”
c. "These items are controlled by the U.S. Government and authorized for export only to the country of ultimate destination for use by the ultimate consignee or end-user(s) herein identified. They may not be resold, transferred, or otherwise disposed of, to any other country or to any person other than the authorized ultimate consignee or end-user(s), either in their original form or after being incorporated into other items, without first obtaining approval from the U.S. Government or as otherwise authorized by U.S. law and regulations.”
81
22. A company that is registered under ITAR
Select one:
a. will be registered in one of three tiers.
b. does not need to submit ITAR license applications.
c. no longer needs an Empowered Official.
d. can ship any defense articles without a license but not provide any defense services without a license.
a. will be registered in one of three tiers.
82
23. An amendment to a license will be considered for:
Select one:
a. changes in the commodity.
b. change in source of commodity.
c. change in country of ultimate destination.
d. change in foreign consignee.
b. change in source of commodity.
83
24. A company is entering the business of manufacturing body armor as listed on the U.S. Munitions List. Under the ITAR Regulations:
Select one:
a. They must register only if they export.
b. They must register whether they export or not.
c. They must register only if their manufacture of US Munitions List articles exceeds $50,000,000 per year.
d. None of the above.
Unknown
84
```
25. Within the meaning of ITAR, a person can be:
Select one:
a. an individual human being
b. a corporation
c. a partnership
d. Any of the above.
```
d. Any of the above.
85
1. Your company is being asked to provide ITAR-regulated technical assistance to a company in a foreign country.
Select one:
a. You must include in the agreement a clause stating "No liability will be incurred or attributed to the U.S. Government in connection with any possible infringement of privately owned patent or proprietary rights, either domestic or foreign, by reason of the U.S. Government's approval to this agreement.
b. You must include in the agreement a clause stating, "No export, sale, transfer, or other disposition of the licensed article is authorized to any country outside the territory wherein manufacture or sale is herein licensed without the prior approval of the U.S. Government unless otherwise exempted by the U.S. Government.
c. You must include both clauses.
d. You need not include either clause.
a. You must include in the agreement a clause stating "No liability will be incurred or attributed to the U.S. Government in connection with any possible infringement of privately owned patent or proprietary rights, either domestic or foreign, by reason of the U.S. Government's approval to this agreement.
86
2. A potential buyer from a non-proscribed foreign country (126) is coming to your factory to observe the production of certain high-technology products which can be used for warfare. Your company expects to present him with copies of technical data, classified "SECRET" which were at one time authorized for export to him. The data has since been revised. The revisions solely altered the text in order to make it easier to follow.
Select one:
a. You will require a license before providing him with this revised data.
b. Neither you nor he will require a license because this is data rather than a product.
c. You will not require a license because an exception is specifically provided for in the regulations.
d. While a license is required, the buyer would be removing the data from the United States, hence is solely his responsibility to obtain the license.
c. You will not require a license because an exception is specifically provided for in the regulations.
87
3. In considering, "major defense equipment" and "significant military equipment"
Select one:
a. both are identical in the contemplation of ITAR.
b. major defense equipment can be significant military equipment but not all significant military equipment is major defense equipment.
c. both are always classified as "top-secret."
d. none of the above.
b. major defense equipment can be significant military equipment but not all significant military equipment is major defense equipment.
88
```
4. "An agreement (e.g., contract) whereby a U.S. person grants a foreign person an authorization to manufacture defense articles abroad" is part of the definition of:
Select one:
a. manufacturing license agreement.
b. distribution agreement
c. technical assistance agreement.
d. none of the above.
```
a. manufacturing license agreement.
89
5. You have a contract for providing defense services in a five-year contract worth $151,050,000 to a foreign government. The following is true:
Select one:
a. the Directorate of Defense Trade Controls must notify Congress, which has the option of prohibiting you from fulfilling the contract.
b. A Form DSP-73 is always required.
c. The application for export license must be submitted within 10 days of the date of commencement of service.
d. none of the above.
a. the Directorate of Defense Trade Controls must notify Congress, which has the option of prohibiting you from fulfilling the contract.
90
6. If the "appropriate U.S. Government agency," such as the Department of Defense, approves a plant visit of a foreign national:
Select one:
a. then under some circumstances, approval of the Directorate of Defense Trade Controls is not required.
b. certification by the Directorate of Defense Trade Controls is always required.
c. certification by the Department of State Office of Politico-Military Affairs is always required.
d. none of the above.
a. then under some circumstances, approval of the Directorate of Defense Trade Controls is not required.
91
7. To claim an exemption for the export of technical data within the provisions of 22 CFR 124,
Select one:
a. the package or letter containing the technical data must be marked "22 CFR 125.4 (identify subsection) applicable."
b. the package or letter containing the technical data must be marked "These commodities, technology or software were exported from the United States in accordance with the Export Administration Regulations. Diversion contrary to U.S. law prohibited "
c. the package or letter containing the technical data must be marked "These goods licensed by the United States for ultimate destination (identify country of ultimate destination). Diversion contrary to U.S. law prohibited.
d. none of the above.
a. the package or letter containing the technical data must be marked "22 CFR 125.4 (identify subsection) applicable."
92
8. "Reexport" or "retransfer" within the meaning of ITAR means
Select one:
a. an export of goods that were previously imported.
b. transfer of defense articles or defense services to an end use, end user, or destination not previously authorized.
c. either of the above.
d. neither of the above.
Unknown
93
9. Warehousing and distribution agreements between U.S. persons and foreign persons:
Select one:
a. need be kept on file by the U.S. person for a period of ten years.
b. must be filed with the Directorate of Defense Trade Controls within 24 hours after going into force.
c. need only be kept on file by the U.S. person for a period of three years.
d. must be approved by the Directorate of Defense Trade Controls before they enter into force.
d. must be approved by the Directorate of Defense Trade Controls before they enter into force.
94
10. "Design, development, engineering, or demilitarization" are possible definitions of:
Select one:
a. technical data
b. defense service
c. products that can always be exported without licensing
d. none of the above.
b. defense service
95
11. Technical data, including classified information, related to .45 caliber firearms, and ammunition for such weapons, except detailed design, development, production, or manufacturing information
Select one:
a. need not be licensed to any country but must be reported within 24 hours after the export.
b. need be licensed under ITAR requirements.
c. is exempt from ITAR requirements of part 125.
d. is exempt from all ITAR requirements.
c. is exempt from ITAR requirements of part 125.
96
12. A person who wishes to act as an agent for others in negotiating or arranging contracts for sale of defense articles for a fee:
Select one:
a. must only report each contract to the Directorate of Defense and Trade Controls within 30 days before the shipment are scheduled to be made.
b. can freely do so.
c. must first register and pay the registration fee as provided for in the regulations.
d. must first obtain a license from the U.S. Customs Service.
c. must first register and pay the registration fee as provided for in the regulations.
97
13. With certain exemptions, a registration statement must be submitted:
Select one:
a. by a company in the U.S. that exports defense articles.
b. by a company in the U.S. that provides defense services internationally.
c. by a company in the U.S. that provides both defense articles and defense services to the domestic market.
d. all of the above.
d. all of the above.
98
14. A shipment to Canada of (unclassified) fully automatic weapons is to be permanently exported to Canada for end use in Canada by Canadian private citizens. Any appropriate requirements of part 124 have been met.
Select one:
a. it requires an export license application on DSP-5.
b. it requires an export license application on DSP - 83
c. it does not require any export license.
d. none of the above.
a. it requires an export license application on DSP-5.
99
15. A registration statement must include information:
Select one:
a. whether the general counsel has ever been convicted for violating any of the U.S. criminal statutes of 120.27.
b. whether the intended registrant is ineligible to receive an export license from the U.S. Bureau of Industry and Security.
c. whether the chief executive officer has ever been indicted for violating any of the U.S. criminal statutes of 120.27.
d. Any of the above.
d. Any of the above.
100
16. An unclassified defense article is to be imported to be improved and enhanced and then reexported to the country from which it is to be imported.
Select one:
a. The District Director of Customs shall permit the import and reexport without a license.
b. A DSP-5 must be filed and approved before the import.
c. A DSP-5 must be filed and approved before the reexport.
d. Two separate DSP-5's must be filed; one for the import and one for the reexport.
c. A DSP-5 must be filed and approved before the reexport.
101
17. A shipment of goods on the United States Munitions List, normally requiring a license, has been shipped to Puerto Rico in accordance with ITAR requirements. It is now planned to be exported to France.
Select one:
a. There is no need to file an application for an export license as ultimate destinations in France are always exempt.
b. There is no need to file an application for an export license; the goods are already considered exported.
c. There is no need to file an application for an export license; the export license for the shipment into Puerto Rico would still be valid.
d. An export license now needs to be applied for.
d. An export license now needs to be applied for.
102
18. A person wishing to temporarily import a defense article must usually file
Select one:
a. DSP-61 or DSP-85 application before the import.
b. DSP-61 or DSP-85 application within 5 days after the import.
c. DSP-61 or DSP-85 application before the goods are again exported.
d. none of the above.
a. DSP-61 or DSP-85 application before the import.
103
19. A U.S. permanent resident (not a citizen) wishing to export unclassified cryptographic hardware product within the meaning of Category XIII(b)(1) for personal and temporary use:
Select one:
a. must always obtain a license under ITAR.
b. under specific circumstances may export without a license.
c. under any circumstances, may choose whether or not to apply for a license under ITAR.
d. none of the above.
b. under specific circumstances may export without a license.
104
20. You have a license under the ITAR for an export of defense articles. At the time of export, the exporter must:
Select one:
a. deposit the license with the Bureau of Customs and Border Protection (CBP)
b. file under the Automated Export System (previously via Shipper's Export Declaration) filing to CBP.
c. both A and B are required.
d. neither A or B are required.
c. both A and B are required.
105
21. Military electronics can include:
Select one:
a. underwater sound equipment
b. radar systems with search capability
c. radar systems with moivng target indication
d. Any of the above
d. Any of the above
106
22. A defense article was exported under license. At this time, there is an order for a one-time shipment of an emergency spare part to be sent to the previously approved end-user. This is a replacement part valued at $250.00 which will not enhance the capability of the defense article.
Select one:
a. A DSP-5 is required.
b. The Port Director of Customs will permit the export without a license.
c. The Port Director of Customs will permit the export without a license only if the goods first go to an independent warehouse in the destiantion country.
d. The previous export license automatically permits shipment of spare parts.
b. The Port Director of Customs will permit the export without a license.
107
23. If a manufacturing license agreement is made between a U.S. company and a foreign company who will manufacture the product exclusively for delivery to the U.S. Air Force
Select one:
a. the agreement may proceed only by approval of the Secretary of State and the President.
b. a license may be authorized using a DSP-5.
c. the agreement may proceed only under an export license, a copy of which the U.S. party must deposit with the U.S. Department of State.
d. a DSP-83 is required.
Unknown
108
24. The Office of Foreign Assets Control of the U.S. Department of the Treasury
Select one:
a. has jurisdiction over matters involving some confiscated property.
b. has jurisdiction over matters involving some payments and transfers.
c. has jurisdiction over export of securities to designated foreign countries.
d. All of the above.
d. All of the above.
109
25. A temporary import:
Select one:
a. may be exported to any foreign country.
b. may only be returned to the country from which it was shipped or taken, although it may transit another country while enroute.
c. must be destroyed within the United States.
d. may be shipped outside the United States only under an export license.
b. may only be returned to the country from which it was shipped or taken, although it may transit another country while enroute.
110
26. You negotiated an agreement for technical assistance with a customer in Peru. The agreement states that it shall not enter into force without the approval of the U.S. Government. It also states that for 60 days, the customer may unilaterally cancel the contract for any reason. Before concluding the agreement, you obtained U.S. Government approval to proceed. Now the customer has decided to use the provision and cancel the contract.
Select one:
a. You advise the customer that once the approval is granted, the contract must be completed.
b. You advise the U.S. Government of the cancellation within 30 days of the decision.
c. You advise the U.S. Government of the cancellation within 60 days of the decision.
d. None of the above.
Unknown
111
27. According to the United States Munitions List
Select one:
a. lasers specifically designed for military communication devices are exempt
b. nerve gases are exempt
c. submersible vehicles powered by nuclear propulsion plants are exemt.
d. None of the above.
d. None of the above.
112
```
28. A presiding official has authority from:
Select one:
a. a foreign person
b. the registrant
c. the US government
d. the applicant
```
c. the US government
113
29. An end-item is:
Select one:
a. an assembled article ready for its intended use
b. a defense article now in its destination country
c. the smallest component of an article
d. none of the above.
a. an assembled article ready for its intended use
114
30. In order to enforce export compliance regulations, including ITAR, U.S. Customs at an airport may:
Select one:
a. detain a shipment for export
b. cause a shipment for export to be unloaded for inspection
c. investigate a shipment for export
d. any or all of the above.
d. any or all of the above.
115
31. Permanent export of classified defense articles:
Select one:
a. is not subject to Department of State or ITAR regulation.
b. is subject only to U.S. Department of Commerce regulation.
c. takes the same application form as for temporary export of classified data.
d. uses a specific application form used for no other purpose.
c. takes the same application form as for temporary export of classified data.
116
32. A party who is considered an "applicant" within the meaning of part 130:
Select one:
a. is the same as a "registrant" under part 122.
b. can be both an "applicant" and a "registrant"
c. is the same as an "empowered official"
d. none of the above
b. can be both an "applicant" and a "registrant"
117
33. We have a contract for the sale of defense articles for which we plan to apply for an export license. We plan to provide training for repair of the goods, which we consider routine, but we question if some might consider it to be major "depot-level" repair. We can:
Select one:
a. obtain an advisory opinion from DDTC
b. apply for approval from the DDTC for the defense services
c. Either of the above
d. None of the above
c. Either of the above
118
```
34. A possible mitigating factor can be
Select one:
a. ignorance of the law
b. lost records
c. voluntary disclosure
d. any of the above
```
c. voluntary disclosure
119
```
35. The United States Munitions List includes
Select one:
a. some firearms
b. some torpedoes
c. some aircraft
d. all of the above.
```
d. all of the above.
120
```
36. Technical data can be considered
Select one:
a. a defense article
b. a defense service
c. either of the above
d. neither of the above
```
Unknown
121
37. Information which is published in a book which is generally accessible or available to the public through bookstores and libraries can be considered
Select one:
a. technical data
b. inside the public domain
c. outside the public domain
d. none of the above
b. inside the public domain
122
```
38. An application for a license for temporary export of unclassified defense articles is made on
Select one:
a. DSP-61
b. DSP-73
c. DSP-9
d. DSP-94
```
b. DSP-73
123
```
39. Permanent import of defense articles into the United States is regulated by:
Select one:
a. the Department of the Interior
b. the Department of State
c. the Department of Commerce
d. none of the above
```
d. none of the above
124
40. The requirements of 124.1 on manufacturing license agreements apply
Select one:
a. only if technical data is to be disclosed
b. whether or not technical data is to be disclosed
c. only if unclassified technical data is to be disclosed
d. only if classified technical data is to be disclosed
b. whether or not technical data is to be disclosed
125
41. You have negotiated a contract for a manufacturing license agreement (for manufacture of significant military equipment) with a company in a non-NATO country, and are applying for an export license. Under ITAR,
Select one:
a. the Department of State must advise Congress
b. Congress must advise the President.
c. the Department of Commerce must advise Congress
d. the Department of State must advise the Department of Commerce.
a. the Department of State must advise Congress
126
42. Proceedings to impose debarment or civil penalties under CFR 127.7 or CFR 127.10 are initiated by
Select one:
a. a indictment
b. a charging letter
c. a telephone call from the Commissioner of Customs
d. None of the above
b. a charging letter
127
```
43. We have an analog-to-digital converter, within the meaning of Item 14 - Category II (b) in part 121. The country of destination is a NATO country and this is a classified article. Our intent is to export it for one month for the prospective buyer to test after which it will be returned to us in the United States. The objective is for the buyer to decide, after testing, whether or not to place an order. We will file:
Select one:
a. an application on DSP-85.
b. an application on DSP-83
c. no application for export license
d. an application on DSP-61
```
a. an application on DSP-85.
128
44. An agreement for manufacture in Germany of significant military equipment in Italy would require:
Select one:
a. an advisory opinion within the meaning of 126.9 of the ITAR
b. Congressional approval before proceeding
c. only an export license
d. prior approval by the DDTC
d. prior approval by the DDTC
129
45. USML Category IV (a) does not include:
Select one:
a. electric squibs
b. seismograph electric blasting caps
c. No. 6 blasting caps including electric ones
d. any of the above.
d. any of the above.
130
46. A license may be revoked if:
Select one:
a. the Department of State deems such action to be in furtherance of world peace.
b. an applicant is ineligible to receive a license to import defense articles.
c. an applicant has been debarred.
d. any of the above.
d. any of the above.
131
```
47. "Combatant” vessels of war include:
Select one:
a. amphibious aircraft/landing craft carriers
b. mine warfare ships
c. desctroyers
d. any of the above
```
d. any of the above
132
```
48. Temporary import control documents include:
Select one:
a. invoice
b. purchase order
c. airway bill
d. any of the above
```
d. any of the above
133
49. In administrative proceeding, the charges will be dismissed:
Select one:
a. where the respondent has not answered.
b. where the evidence is not sufficient.
c. where the respondent has not answered in writing.
d. where the respondent has not answered verbally.
b. where the evidence is not sufficient.
134
```
50. A temporary export license can authorize the temporary export of
Select one:
a. temporary exports
b. unclassified defense articles
c. a manufacturing license agreement
d. technical data
```
b. unclassified defense articles
135
1. Under the EAR, records to be retained include:
Select one:
a. notes, correspondence and memos.
b. export control documents and other records that pertain to the transaction.
c. contracts, bid invitations and financial records.
d. all of the above.
d. all of the above.
136
2. A key to export compliance and documentation is the
Select one:
a. jurisdiction determination.
b. correct jurisdiction and classification of items to be exported.
c. the classification determination first.
d. HTS Number.
unknown
137
3. The following US origin item is not subject to the EAR:
Select one:
a. If moving in transit across the United States between Canada and Mexico.
b. If presently located in Japan.
c. A shotgun with a barrel length 18 inches or over.
d. A shotgun with a barrel length less than 18 inches.
d. A shotgun with a barrel length less than 18 inches.
138
```
4. Category 0 of the CCL includes:
Select one:
a. Handcuffs.
b. Optical sights for firearms.
c. Military steel helmets.
d. All of the above.
```
d. All of the above.
139
5. A delay in responding to a formal CBP request for shipment paperwork
Select one:
a. will always result in the shipment being seized.
b. may result in the shipment being seized.
c. will never delay release of a shipment.
d. will not result in the shipment being seized.
b. may result in the shipment being seized.
140
6. If a “Red Flag” applies to a transaction:
Select one:
a. Always apply for a license.
b. The order must always be canceled.
c. The suspicious circumstances should always be checked out. If explainable and justifiable then proceed; if not BIS should be contacted and the exporter should wait for a reply.
d. Wait ten calendar days then proceed with the order.
c. The suspicious circumstances should always be checked out. If explainable and justifiable then proceed; if not BIS should be contacted and the exporter should wait for a reply.
141
7. What recordkeeping is recommended but not actually required by the regulations:
Select one:
a. Rationale for classifying items according to the CCL, EAR99 or USML.
b. Copies of correspondence relating to an order.
c. Airway bills.
d. Information electronically exported.
a. Rationale for classifying items according to the CCL, EAR99 or USML.
142
8. What General Prohibition is not applicable to customer screening:
Select one:
a. GP 5.
b. GP 8.
c. GP 6.
d. GP 7.
b. GP 8.
143
9. In some cases the following can be used in place of a Schedule B number.
Select one:
a. Some ECCN’s.
b. Some HTS numbers.
c. Some USML numbers.
d. All of the above.
b. Some HTS numbers.
144
10. An AES filing is not required for
Select one:
a. imports into the United States.
b. licensed exports to Canada.
c. any shipment of goods exceeding $2500 per Schedule B number.
d. any software or technology transferred electronically.
d. any software or technology transferred electronically.
145
```
11. Some software is included in the definition of technical data in the:
Select one:
a. EAR.
b. ITAR.
c. Both a and b above.
d. Neither a or b above.
```
b. ITAR.
146
12. When an exemption is claimed for the export of unclassified technical data under ITAR, the exporter:
Select one:
a. must insure copies in triplicate are maintained on file.
b. must contact the DDTC for further guidance.
c. must maintain a record of each such export.
d. has the option to retain the records or not.
c. must maintain a record of each such export.
147
13. A BIS license application for National Security items to Mexico will generally require:
Select one:
a. a Statement by Ultimate Consignee and Purchaser.
b. an Import/End-user Certificate issued by the IC/DV authority of the country.
c. both a and b above.
d. neither a or b above.
Unknown
148
14. Recordkeeping systems based on the storage of digital images must be capable of retrieval of the records based on the following:
Select one:
a. The names of the parties to the transaction.
b. Any countries connected with the transaction.
c. A document reference number that was on any original document.
d. All of the above.
d. All of the above.
149
15. The following document(s) are among those that would ordinarily be provided by the seller.
Select one:
a. Commercial invoice.
b. Packing list.
c. Any applicable certificate of origin.
d. All of the above.
d. All of the above.
150
```
16. What screening list is a DDTC list?
Select one:
a. Denied Person’s List.
b. Specially Designated Nationals and Blocked Persons List.
c. Unverified List.
d. Statutorily Debarred Parties List.
```
d. Statutorily Debarred Parties List.
151
17. SME articles:
Select one:
a. are not identified as such in the USML.
b. have a total production cost of more than $200,000,000.
c. have capacity for substantial military utility or capability.
d. have a "nonrecurring research and development cost of more than $50,000,000.
c. have capacity for substantial military utility or capability.
152
18. SNAP-R can be used for:
Select one:
a. license applications to BIS.
b. registration with BIS.
c. routed export transaction requests to BIS.
d. none of the above.
a. license applications to BIS
153
19. The Classification Request is submitted to:
Select one:
a. BIS.
b. CBP.
c. Census.
d. DDTC.
a. BIS.
154
20. The Nuclear Regulatory Commission has the following types of licenses:
Select one:
a. General licenses.
b. Specific licenses.
c. Bulk licenses.
d. Both a and b above.
d. Both a and b above.
155
21. Under the ITAR, for a license application for a permanent export of unclassified defense articles, the following is used:
Select one:
a. DSP-77.
b. DSP-5.
c. DSP-119.
d. DSP-73.
b. DSP-5.
156
22. Generally the following regulations will have jurisdiction over others regarding munitions.
Select one:
a. FACR.
b. FTSR.
c. ITAR.
d. EAR.
c. ITAR.
157
23. What export control document is normally reviewed by multiple agencies of the US government for all exports:
Select one:
a. the airway bill/bill of lading.
b. the ACE filing.
c. the shipping invoice.
d. all of the above.
b. the ACE filing.
158
24. The following are related to ITAR but not the EAR:
Select one:
a. Empowered Official.
b. Commodity Jurisdiction.
c. Regulatory Revisions.
d. All of the above.
a. Empowered Official.
159
25. Recordkeeping systems must be:
Select one:
a. highly centralized.
b. highly decentralized.
c. for an unlimited time limit for the retrieval of records.
d. capable of timely retrieval of export records.
d. capable of timely retrieval of export records.
160
26. Major Defense Equipment can include:
Select one:
a. significant military equipment.
b. nonrecurring research and development cost of more than $50,000,000.
c. a total production cost of more than $200,000,000.
d. all of the above.
d. all of the above.
161
27. License applications for ECCN 5A002 and 5B002 items must have as attachment(s):
Select one:
a. a Statement by Ultimate Consignee and Purchaser.
b. an Import/End-user Certificate issued by the IC/DV authority of the country.
c. either a and b above.
d. neither a or b above.
Unknown
162
28. As a Best Practice screening lists should be checked:
Select one:
a. only once before doing business with a foreign party.
b. multiple times.
c. once before the initial shipment takes place.
d. only if an order results from an offer.
b. multiple times.
163
29. The Classification Request process results in:
Select one:
a. ECCN or EAR99 classification.
b. USML identification.
c. Schedule B number.
d. Commodity jurisdiction.
Unknown
164
30. Permanent imports of defense articles into the US are regulated by.
Select one:
a. Commerce.
b. State.
c. Defense.
d. None of the above.
d. None of the above.
165
31. Commodity Jurisdiction requests can be reviewed by:
Select one:
a. DDTC.
b. DTSA.
c. BIS.
d. All of the above.
d. All of the above.
166
32. Which of these US government agencies does not have a list of persons to check before exporting?
Select one:
a. BIS.
b. DDTC.
c. OFAC.
d. All of the above have a prohibited persons list.
d. All of the above have a prohibited persons list.
167
33. The following examples of alphanumeric symbols are used for export control classifications.
Select one:
a. 5A992.a.
b. XIII(b)
c. EAR99
d. All of the above.
d. All of the above.
168
34. Which of these steps is first?
Select one:
a. determine classification of the related software.
b. determine jurisdiction of the item (State or Commerce).
c. verify if the item is export-controlled under OFAC regulations.
d. register with the DOC BIS.
b. determine jurisdiction of the item (State or Commerce).
169
35. What screening list is an OFAC list?
Select one:
a. Denied Person’s List.
b. Statutorily Debarred Parties List.
c. Specially Designated Nationals and Blocked Persons List.
d. Unverified List.
c. Specially Designated Nationals and Blocked Persons List.
170
36. What screening list can identify our potential buyer as someone for whom a license must be obtained for our planned export?
Select one:
a. Denied Person’s List.
b. Entity List.
c. Neither A nor B.
d. Both A and B.
Unknown
171
37. A reason for being able to lawfully export some goods subject to the EAR could be due to:
Select one:
a. Because the goods are controlled.
b. An ITAR license.
c. A License Exception.
d. Because the destination is subject to a U.S. embargo.
c. A License Exception.
172
38. The multilateral control regime for “dual use” items is:
Select one:
a. The Wassenaar Arrangement.
b. COCOM.
c. The European Union.
d. NATO.
a. The Wassenaar Arrangement.
173
39. The following represents one activity of transaction based screening:
Select one:
a. Customers are only screened immediately before shipment.
b. Customers are screened one time.
c. Customer lists are kept current by perpetual screening of screening list changes.
d. Every order is individually screened.
d. Every order is individually screened.
174
40. Persons involved with following activity must be registered with DDTC before submitting a license application:
Select one:
a. manufacture of defense articles or defense services.
b. exporter of defense articles or defense services.
c. brokering activities involving defense articles or defense services.
d. all of the above.
d. all of the above.
175
41. The best procedure to determine jurisdiction between DDTC and BIS is a:
Select one:
a. Commerce Classification Request.
b. DDTC Advisory Opinion Request.
c. Commodity Jurisdiction Submission.
d. BIS Advisory Opinion Request.
c. Commodity Jurisdiction Submission.
176
42. Restricted Parties screening should include:
Select one:
a. new employees and agents.
b. brokers, representatives and visitors.
c. attendees at meetings, conferences and seminars.
d. all of the above.
d. all of the above.
177
43. What marking on shipping containers should be avoided:
Select one:
a. Destination.
b. Box count (1 of 500 etc.).
c. Unique identification markings required by the buyer.
d. Detailed description of valuable contents.
d. Detailed description of valuable contents.
178
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44. Items found on both the USML and the CCL are:
Select one:
a. shotguns.
b. cameras.
c. software.
d. all of the above.
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d. all of the above.
179
45. Under the ITAR, records must be maintained
Select one:
a. indefinitely unless otherwise directed by the DDTC.
b. for a period of not less than five years following the date of the report to which they pertain.
c. for a period of no more than five years following the date of the report to which they pertain.
d. at the discretion of the registrant for a period not to exceed 5 years.
b. for a period of not less than five years following the date of the report to which they pertain.
180
46. Red Flag indicators:
Select one:
a. Must always be the ones published in regulations.
b. May be synonymous with Diversion Risk indicators.
c. Indicate that on order must be expedited.
d. Both a and b above.
b. May be synonymous with Diversion Risk indicators.
181
47. The following represents one activity of customer based screening:
Select one:
a. Customer lists are kept current by perpetual screening of list changes.
b. Customers are only screened immediately before shipment.
c. Customers are screened one time.
d. Every order is individually screened.
a. Customer lists are kept current by perpetual screening of list changes.
182
48. Records required by the EAR must be retained for five years from the latest
Select one:
a. export.
b. known reexport, transshipment, or diversion.
c. any other termination of the transaction.
d. all of the above.
d. all of the above.
183
49. What information is required on DDTC license applications that is not required on BIS license applications:
Select one:
a. Freight forwarders.
b. Foreign intermediate consignees.
c. Foreign consignees.
d. End user.
a. Freight forwarders.
184
50. If an enforcement agency calls or inquiries, exporters should be able to
Select one:
a. defer such a request until time permits further action.
b. produce records immediately.
c. quickly retrieve documents in a timely manner.
d. locate records within 60 days from the date of the request.
c. quickly retrieve documents in a timely manner.
