CUSECO TRAINING STUDY GUIDE QUESTIONS WITH COMPLETE VERIFIED SOLUTIONS 2024/2025, Exams of Business Administration

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CUSECO TRAINING STUDY GUIDE

QUESTIONS WITH COMPLETE VERIFIED

SOLUTIONS 2024/

A Commerce License is not required if: A License Exception applies, NLR applies, or an Encryption Licensing Arrangement applies. What is the new DDTC electronic defense trade licensing system: D-Trade- 2 The Destincation Control Statements under the ITAR and EAR are required to be on: the shipping label, the bill of lading, the AES filing. Application for licenses for temporary export of classified articles are to be made on form: DSP - 85 Registration is required if we are producing or exporting articles on the: USML An ITAR license application for a permanent export requires: name and address of foreign end-user, name and address of foreign consignee, name and address of foreign intermediate consignee (if any). A routed transaction, under the EAR is: documentation by whichc the FPPI is to assume responsibility for export compliance The agency most responsible for AES is US Census Bureau If we are exporting under exemption, we are working with: The EAR Employees at DDTC registered entities with the ability to manage access to the D-Trade portal, including adding and removing users and assigning user roles are: Super Users Which of the following statements is true: The DCS in the EAR is different than the DCS in the ITAR Form DSP-83 is required with license applications for exports of:

Classified technical data, classified defense articles. significant military equipment What resource is the most authoritative and best way to keep track of proposed and final regulatory changes regarding US trade controls? Federal Register The USML is in the: ITAR Under the ITAR, a DSP-83 is: A non-transfer and use certificate A BIS license application for National Security items to Indonesia will generally require: A Statement by Ultimate Consignee and Purchaser. And an Import/End-user Certificate issued by the IC/DV authority of the country. A Schedule B Number is entered on the: AES filing An ELA requires that all (foreign) consignees receiving items under the ELA be pre-approved. The EAR and the FTSR have a different definition of a exporter when the export is a "routed transaction" An ITAR DA is: A contract to distribute defense articles from the US to an approved sales territory, a contract to distribute defense articles manufactured and reexported abroad to an approved sales territory, a contract to distribute defense articles exported from the US to a distribution point abroad for redistribution to an approved sales territory. A possible documentation requirement on export shipments, that is actually for reasons of import clearance at destination, is: AES filing, Export License application, CofO. Under the ITAR a retransfer means: The transfer of defense articles and defense services from one country to another, the transfer of defense articles and services from one end-user to another in the same country, the same as a reexport. SNAP is the electronic submittal tool for: BIS export and reexport applications, and commodity classifications. Statistical export regulations are mainly contained in the: FTSR A BIS License application for National Security items to Slovakia will generally require: A Statement by Ultimate Consignee and Purhcaser and an Import/End-user Certificate issued by the IC/DV authority of the country. Your company is being asked to provide ITAR-regulated technical assistance to a company in a foreign country:

You must include in the agreement a clasue stating "No liability will be incurred or attributed to the US government in connection with any possible infringement of privately owned patent or proprietary rights either domestic or foreign, by reason of the US Governments approval to this agreement. 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 if easier to follow. You will require a license before providing him with this revised data. In considering, "major defense equipment" and "significant military equipment": Major defense equipment can be significant military equipment but not all significant military equipment is major defense equipment "An agreement (e.g. contract) whereby a US person grants a foreign person an authorization to manufacture defense articles abroad", is part of the: Manufacturing license agreement 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: The Directorate of Defense Trade Controls must notify Congress, which has the option of prohibiting you from fulfilling the contract. If the "appropriate US Government agency, " such as the Department of Defense, approves a plant visit of a foreign national: Then under some circumstances, approval of the Directorate of Defense Trade Controls is not required. "Re-export" or "retransfer" within the meaning of the ITAR means: Transfer of defense articles or defense services to an end use, end user, or destination not previously authorized. Warehousing and distribution agreements between US persons and foreign persons: Must be approved by the Directorate of Defense Trade Controls before they enter into force. "Design, development, engineering, or demilitarization" are possible definitions of: defense service Technical data, including classified information, related to .45 caliber firearms, and ammunition for such weapons, except detailed design, development, production, or manufacturing information: is exempt from ITAR requirements of part 125 A person who wishes to act as an agent for others in negotiating or arranging contracts for sale of defense articles for a fee: must first register and pay the registration fee as provided for in the regulations. With certain exemptions, a registration statement must be submitted:

by a company in the US that exports defense articles, by a company in the US that provides defense services internationally, by a company in the US that provides defense services to the domestic market 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: It does not require any export license A registration statement must include information: Whether the general counsel has ever been convicted for violating any of the US criminal statutes of 120.27, Whether the intended registrant is ineligible to receive an export license from the US Bureau of Industry and Security, whether the chief executive officer has ever been indicted for violating any of the US criminal statutes of 120.27. 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: The District Director of Customs shall permit the import and reexport without a license. A shipment of goods on the USML, normally requiring a license, has been shipped to Puerto Rico in accordance with ITAR requirements. It is now planned to be exported to France. An export license now need to be applied for. A person wishing to temporarily import a defense article must usually file a: DSP-61 or DSP-85 application before the import A US 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, use: under specific circumstances may export without a license You have a license under the ITAR for an export of defense articles. At the time of export, the exporter must: Deposit the license with the Bureau of Customs and Border protection (CBP) and file under the Automated Export System (previously via Shippers Export Declaration) filing to CBP. Military electronics can include: underwater sound equipment, radar systems with search capability, and radar systems with moving target indication 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 which will not enhance the capability of the defense article. The previous export license automatically permits shipment of spare parts. If a manufacturing license agreement is made between a US company and a foreign company who will manufacture the product exclusively for delivery to the US Air Force: A DSP-83 is required The Office of Foregin Assets Control of the US Department of the Treasury:

Has jurisdiction over matters involving some confiscated property, has jurisdiction over matters involving some payments and transfers, has jurisdiction over export of securities to designated foreign countries. A temporary import: May only be returned to the country from which it was shipped or taken, although it may transit another country while en route. 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 US government. It also states that for 60 days, the customer may unilaterally cancel the contract for any reason. Before concluding the agreement, you obtained US government approval to proceed. Now the customer has decided to use the provision and cancel the contract. You advise the US government of the cancellation within 60 days if the decision. A presiding official has authority from: The US government An end-item is: the smallest component of an article or an assembled article ready for it's intended use. In order to enforce export compliance regulations, including ITAR, US Customs at an airport may: Detain a shipment for export, cause a shipment for export to be unloaded for inspection, investigate a shipment for export. Permanent export of classified defense articles: uses a specific application form used for no other purpose. A possible mitigating factor can be: voluntary disclosure 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 questions if some might consider it to be major "depot-level" repair. We can: obtain an advisory opinion from DDTC or apply for approval from the DDTC for the defense services. A party who is considered an "applicant" within the meaning of part 130: Is not the same as a "registrant" and is not the same as an "empowered official" The USML includes: Some firearms, some torpedoes, and some aircraft Technical Data cannot be considered: A defense article, a defense service. Information which is published in a book which is generally accessible or available to the public through bookstores and libraries can be considered: In the public domain An application for a license for temporary export of unclassified defense articles is made on: DSP- 73

Permanent import of defense articles into the United States is regulated by: Department of Justice's Bureau of Alcohol, Tobacco, Firearms, and Explosives The requirements of 124.1 on manufacturing license agreements apply: Whether or not technical data is to be disclosed 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, The Department of State must advise Congress. Proceedings to impose debarment or civil penalties under CFR 127.7 or CFR 127.10 are initiated by: a charging letter We have 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 US. The objective is for the buyer to decide, after testing, whether or not to place an order. We will file: an application DSP- 83 An agreement for manufacture in Germany of significant military equipment in Italy would require Congressional approval before proceeding. Military demolition blocks and blasting caps referred to in Categopry IV(a) include: electric squibs, seismograph electric blasting caps, No. 6 blasting caps including electric ones. A license may be revoked if: The Department of State deems such action to be in furtherance of world peace, an applicant is ineligible to receive a license to import defense articles, an applicant has been debarred. "Combatant" vessels of war include: amphibious aircraft/landing craft carriers, mine warfare ships, destroyers Temporary import control documents include: Invoice, purchase order, airway bill In administrative proceeding, the charges will be dismissed: Where the evidence is not sufficient A temporary export license can authorize the temporary export of: unclassified defense articles. A company is entering the business of manufacturing body armor as listed on the US munitions list. Under the ITAR Regulations: they must register whether they export or not. An export can be:

Sending or taking a defense article out of the US in any manner, except by mere travel outside of the US by a person whose personal knowledge includes technical data, transferring registration of a satellite to a foreign person, transferring technical data to a foreign person, whether in the US or abroad. A person authorized by the US government to conduct hearings in administrative proceedings is: A Presiding Official Applications for export or temporary import licenses must always include: a certification letter We have a TAA for a new location we are setting up in a foreign country. We would require it for: depot level training in upgrading. A type of protective personnel equipment that can be a defense article is: body armor, pressure suits, helmets The Empowered Official has the independent authority to: refuse to sign any license application, inquire into any aspect of a proposed temporary import by the applicant, verify the legality of an export transaction. Within the meaning of the ITAR, a person can be: an individual human being, a corporation, a partnership Within the meaning of the ITAR, a re-export is: Transfer of a defense article to an end use, end user, or destination not previously authorized. When an exemption is claimed for the export of unclassified technical data, the exporter must maintain a record including: A description of the unclassified technical data If a Technical Assistance Agreement has been proposed but not concluded: the Directorate of Defense Trade Controls must be notified "This agreement is subject to all United States laws and regulations relating to exports and to all administrative acts of the US Government pursuant to such laws and regulations." This is a clause which must be in: both manufacturing License Agreements and Technical Assistance Agreements In proceedings before the Administrative Law Judge, the judge may: request the parties to their counsel to a prehearing conference The following are countries which were original members of the Missile Technology Control Regime: The United States, the United Kingdom, the Federal Republic of Germany, and Italy. The temporary import of defense articles into the United States is regulated by: The Department of State Under the ITAR, a Foreign Trade Zone is considered: An integral part of the United States An amendment to a license will be considered for:

change in source of commodity. 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: associated technical data for commercial communications satellites. Under ITAR, a person involved in brokering activities does not require a license for: brokering activities undertaken for an agency of the US government. "A completed nontransfer and use certificate (DSP-83) must be executed by the foreign end-user and submitted to the Department of State of the US before any transfer may take place." This is a clause which must be in: all Manufacturing License Agreements relating to significant military equipment. A charging letter must be answered within: 30 days after service When or if a manufacturing license agreement is terminated, the DDTC must be so notified in writing: Not less than 30 days prior to the expiration an export license: must bear the word license An empowered official: must be directly employed by the applicant or subsidiary A company wishes to ship under available exceptions but cannot if: the company would be in violation of General prohibition 10 in making the shipment A possible reason for exporting a product without applying for an export license is: EAR 99 Our company wished to fill an order for France which we determine is a sale to a denied person who is under a standard denial order. We: cannot ship under any circumstances A request can be fulfilled for: a certificate that our goods are made in the USA with no materials from Canada. 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 re-exporting it in its original form to country to which it is subject to a US export license. We ask him to obtain a US license before doing so in the future, and he advises us that "I am subject only to the laws of my country and not 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: 10 For CIV exception, we would refer to: Country group D

On an EXW sale from the United States: The seller has the responsibility for export compliance The General Prohibitions address several processes including: a transshipment which occurs via Russia 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: ship up to $24,000 total per year of either or both products at a time. In retaining records under the EAR, it is possible to retain reproductions instead of originals. 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 re-exported to Poland on August 5. We are aware of that transaction. We expect that we would need to keep records on our export until: August 5, five years hence. In exporting a product that is under the CCL but not controlled to our destination country, we would use: NLR A product that is not enumerated in the CCL can qualify for: NLR - EAR 99 The current "diversion clause" is: "These commodities, technology or software were exported from the US in accordance with the Export Administration Regulations. Diversion contrary to US law prohibited. Under the Foreign Corrupt Practices Act, a US exporter is prohibited from: bribing a Customs official to permit the entry of its product. A person may incur a civil penalty under 15 CFR 764.3 for: bribing a foreign government official to obtain a lower duty rate. In determining if a license is needed for export of a controlled product, referring to General Prohibition 1, we must check: reasons for control, country chart, and license exceptions. We have a 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: CIV exception For an article controlled under NS 1, the review of the license application by BIS generally will include: an analysis of the kinds and quantities of items to be shipped, the country of destination, the intended end-use. 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:

From these facts alone it can ship under NLR The RPL exception is used for: One-for-one replacement of parts. Determining if a license is required under General Prohibition 1 and the CCL would include finding, in the following order: ECCN number, "X" in the country chart, any license exception. We know that an export license is not required if: the product is not listed in the CCL A possible penalty for violating the EAR is: revocation of export privileges, monetary fine, prison The General Prohibitions forbid: A proceeding with a transaction knowing that a violation will occur The parameters for EAR 99 may be found: In Category One of the CCL, in Category Two of the CCL, in Category Three of the CCL We have a one-time shipment to Ecuador of $4,000 of product under ECCN 1C006 d.1.a and may ship: under GBS exception An example of an SS control is: horses by sea/ The United States regulates exports because of: national security, short supply, and foreign policy. Assuming we have already overcome other prohibitions, a possible reason for exporting a product without applying for an export license is: The article is on the CCL but there is no X in the box to our destination country, the article is not in the CCL, no ECCN applies. Our export license application may be to export product based on a given quantity in : Dollars, Kilograms, or Units of Product Possible penalties for violation of the EAR include Being place on the DPL, fines, and imprisonment An example of an embargoed country is: North Korea An example of an anti-boycott violation is: stating that our products are not made in a specific foreign country. We have a request to pay a bribe for a foreign official. This would be a violation of the: FCPA A major reason for a license application to not be approved is: insufficient information

License applications are generally made on: SNAP-R An AES filing can be made by: The exporter or the freight forwarder A document that can be used for transmitting information from exporter to freight forwarder: SLI We have an order from a DPL We cannot ship A reason for US export controls is: to prevent arms, high technology, and other products form reaching a country or person who would attempt to use them against the US or its allies, to comply with certain international agreements, such as embargoes. The following is US law: EAR An agency that regulates some US exports is: BIS, DDTC, Fish & Wildlife service an article is under an ECCN. We therefore know: it is on the CCL A freight forwarder may be specified by: the seller or the buyer A denied party can be: in the US or outside of the US A little used control on the country chart is: AT A General Prohibition that can apply to banks and freight forwarders is: 7 A_________________ occurs in the US deemed export You export product described in ECCN 2B352 to your branch office in the United Kingdom under which you find has been exporting some of this product to the Ukraine. You advise them: They are violating GP 1. An ECCN is: found within the CCL "Export" does not include a shipment from: the territory of the 50 United states to Puerto Rico, The territory of Puerto Rico to the territory of the Commonwealth of the Northern Mariana Islands, the territory of Puerto Rico to the territory of the 50 United States.

For a shipment of foreign-made product with controlled US content to be shipped to a country in Country Group E:1, the product is not subject to the EAR if the percentage of controlled content to the foreign made product: is 10% or less There is no de minimis level for some products: under ECCN 3A001, under ECCN 4A994, under ECCN 5E License exceptions are subject to revocation without notice For LVS shipments: the shipping costs are not included in computing the value for LVS purposes An order that exceeds the LVS dollar limit: will not be eligible for the LVS exception For an order under TSR, the exporter: must obtain written assurance from the buyer as to re-export or release of the technology The RPL exeption: is available for all products at any time as long as it is on-for- one replacement, has a condition that the part replaced be returned promptly to the seller, or someone under his control, or is destroyed abroad. Under the GFT exception: can always include vitamins The term "dual use": serves to distinguish EAR-controlled commodities that can be used both in military and other strategic uses and commercial applications. The following is a reason why an exporter may not be able to use a license exception: The export is not eligible for a license exception, the exporter's authorization to do so has been revoked. Exports under APP exception: are subject to tiers. For an LVS exception, we would refer to: country group B We have an article controlled in the CCL. The easiest way for us to export is: to a country which is not a controlled destination. We may 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: GBS only Firearms Convention controls are: within the western hemisphere only If an article is not listed in the CCL: it could still need a BIS license

We have two articles under one ECCN, each valued at $500, under one purchase order, but configured differently and taking different catalog numbers. The only exception available is LVS with a limit of $500. We can split the shipment, and ship two $500 shipments under LVS A very tightly controlled country for US exports according to the Country Chart is: Canada "NLR" may be an article: having no ECCN, not on the CCL, but with no appropriate "X" in the box for our destination country. Examining the country chart, of the following, the most highly controlled articles (in terms of controlled to the most destinations) are for reasons of: MT If we use the buyer's ______________________ we can have the responsibility for export compliance but have lost the control over it. Freight forwarder, carrier, customs broker. We have articles under three different ECCNs to one customer in one desitination country. One article qualifies for LVS, one for GBS, one requires a license which we have in hand. We have another which is not on the CCL. We: may combine all four into one shipment. A key to export compliance and documentation is the: correct jurisdiction and classification of items to be exported When an exemption is claimed for the export of unclassified technical data under ITAR, the exporter: must contact the DDTC for further guidance What export control document is normally reviewed by multiple agencies of the US government for all exports: the airway bill/ BOL, the AES filing, and the shipping invoice Which of these steps is first: 1.Determine jurisdiction of the item (State of Commerce) 2.Determine classification of the related software 3.Verify if the item is export-controlled under OFAC regulations 4.Register with the DOC BIS 3 Under the ITAR, records must be maintained: for a period of not less than five years following the date of the report to which they pertain The following represents one activity of customer based screening: Customer lists are kept current by perpetual screening of list changes. Records required by the EAR must be retained for five years from the latest:

export, known re-export, transshipment, or diversion, or any other termination of the transaction. What information is required on DDTC license applications that is not required for BIS license applications: freight forwarders If an enforcement agency calls or inquires, exporters should be able to: quickly retrieve documents in a timely manner The following US origin item is not subject to the EAR A shotgun with a barrel length less than 18 inches Category 0 of the CCL includes: Handcuffs, optical sights for firearms, military steel helmets A delay in responding to a formal CBP request for shipment paperwork: Will always result in the shipment being seized. If a "red flag" applies to a transaction: 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. What record keeping is recommended but not actually required by the regulations: Copies of correspondence relating to an order. Under the EAR, records to be retained include: Notes, correspondence and memos; export control documents and other records that pertain to the transaction; contracts, bid invitations and financial records What General Prohibition is not applicable to customer screening: GP 7 In some cases the following can be used in place of a Schedule B number: Some HTS numbers An AES filing is not required for: licensed exports to Canada Some software is included in the definition of technical data in the: EAR and ITAR A BIS license application for National Security items to Mexico will generally require: A Statement by the Ultimate consignee and Purchaser, and Import/End-user Certificate issued by the IC/DV authority of the country. Record keeping systems based on the storage of digital images must be capable of retrieval of the records based on the following: The names of the parties to the transaction, any countries connected with the transaction, A document reference number that was on any original document. The following documents are among those that would ordinarily be provided by the seller: Commercial invoice, packing list, any applicable certificate of origin.

What screening list is a DDTC list? Statutorily Debarred Parties List SME articles: have capacity for substantial military utility or capability SNAP-R can be used for: license applications to BIS The classification request is submitted to: BIS The nuclear regulatory commission has the following types of licenses: specific licenses Under the ITAR, for a license application for a permanent export of unclassified defense articles, the following us used: DSP- 5 Generally the following regulations will have jurisdiction over others regarding munitions ITAR The following are related to ITAR but not the EAR Empowered official, commodity jurisdiction, regulatory revisions Recordkeeping systems must be: capable of timely retrieval of export records. Major Defense Equipment can include: significant military equipment, nonrecurring research and development cost of more than $50,000,000, a total production cost of more than $200,000,000. License applications for ECCN 5A002 and 5B002 items do not need ______________ as attachments a statement by the Ultimate Consignee and purchaser or an import/End-user certificate issued bu the IC/DV authority of the country As a best practice screening lists should be checked: multiple times The classification request process results in: ECCN or EAR99 classification Permanent imports of defense articles into the US are not regulated by: Commerce, State, Defense Commodity jurisdiction requests can be reviewed by: DDTC Which of these US government agencies have a list of persons to check before exporting: BIS, DDTC, OFAC

The following examples of alphanumeric symbols are used for export control classifications:

1. 5A992.a 2.XIII(b)
2. EAR
3. 5A992.a What screening list is an OFAC list: Specifically Designated Nationals and Blocked Persons List What screening list can identify our potential buyer as someone for whom a license must be obtained for our planned export Entity List A reason for being able to lawfully export some goods subject to the EAR could be due to A license exception The multilateral control regime for "dual use" items is: The Wassenaar Arrangement The following represents one activity of transaction based screening Every order is individually screened Persons involved with the following activity must be registered with DDTC before submitting a license application: Manufacture of defense articles or defense services, exporter of defense articles or defense services, brokering activities involving defense articles or defense services The best procedure to determine jurisdiction between DDTC and BIS is a: Commodity Jurisdiction Submission Restricted parties screening should include: new employees and agents, brokers, representatives, and visitors, attendees at meetings, conferences, and seminars. What marking on shipping containers should be avoided: Unique identification markings required by the buyer Items found on both the USML and the CCL are: Shotguns, cameras, software Red flag indicators: Must always be the ones published in regulations, may be synonymous with Diversion Risk indicators.