Intermediate Business Vocabulary

Import Export Definitions

Choose either True or False for each question.

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

True

False

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

True

False

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

True

False

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

True

False

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

True

False

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

True

False

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

True

False

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

True

False