Import Export Definitions - Answers

1. Tariffs are a tax on imported goods that must be paid.
Answer: True

2. A Pro Forma Invoice is a final bill sent after goods are delivered.
Answer: False

3. Customs is the official department that regulates the export of goods from a country.
Answer: False

4. Declaring goods is only necessary for items being exported, not imported.
Answer: False

5. F.O.B. (Free On Board) means the buyer is responsible for the goods once they are loaded onto the ship.
Answer: True

6. A Certificate of Origin is needed to show where a product was made or processed.
Answer: True

7. C.I.F. (Cost, Insurance, Freight) includes the price of goods, transport, and insurance only within the exporting country.
Answer: False

8. A Letter of Credit guarantees payment to the exporter by the importer's bank.
Answer: True