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Exam CLTD topic 1 question 108 discussion

Actual exam question from APICS's CLTD
Question #: 108
Topic #: 1
[All CLTD Questions]

A company wants to minimize tariff costs while avoiding the need to file for duty drawback. Which of the following practices would best achieve this objective?

  • A. Adopt Customs Trade Partnership Against Terrorism (C-TPAT) rules
  • B. Use foreign/free trade zones (FTZs)
  • C. Use an international third-party logistics (3PL) provider
  • D. Ship by free on board (FOB) terms
Show Suggested Answer Hide Answer
Suggested Answer: D 🗳️

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Aziz8903
1 year, 3 months ago
B As The ultimate goal of any FTZ is to encourage foreign investment and exports. Goods can be shipped to an FTZ without incurring duties or being subject to quotas
upvoted 1 times
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Sanako
3 years, 1 month ago
B is correct
upvoted 1 times
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Dpinv
3 years, 11 months ago
B By using a Foreign-Trade Zone, the company avoids the lengthy Customs duty drawback process. No duty is paid on goods destroyed in the zone, which can ...
upvoted 1 times
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alinmar
4 years ago
Correct answer D
upvoted 1 times
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Antman2020
4 years, 4 months ago
Correct answer is FTZ.
upvoted 1 times
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TusharD
4 years, 7 months ago
It should be use of FTZ
upvoted 2 times
...
Community vote distribution
A (35%)
C (25%)
B (20%)
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