CUSTOMS BROKERS & FORWARDERS COUNCIL OF AUSTRALIA INC.

NATIONAL EXAMINATION

SAMPLE PAPER

This Examination paper remains the property of the CBFCA.

The National Examination for the Statement of Attainment of Competency for Customs Brokers Licensing carries a maximum possible assessment of 100 marks. To pass the Examination, a candidate must achieve not less than 70% of the total marks possible.

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Question 1 Question 1 comprises 10 multiple choice questions. Each question is worth 1 mark. Read each question carefully and record the question number and the most correct response in your answer booklet.

Question 1

10 marks

Having regard to Australian Customs and related legislation (Including GST legislation), choose the most correct answer to the following:

Before claiming preferential duty rates for least developed countries(LDC) and East Timor, importers must have access to: a b c d A Certificate of origin in the format issued by the International Chamber of Commerce (ICC) A statement from the supplier that the goods conform to origin rules Sufficient information that the goods meet the rules of origin for LDC A signed and certified declaration from the manufacturer of the goods

ii

Which of the following is NOT a taxable importation? a A shipment of steel plate ex China invoiced at US$500,000 b Rubber tips of UK origin to make pointers, valued at 670. c Blueprints drafted in Germany for toy trains produced in China sent Free of Charge to the Australian importer of the goods. d Australian made pre-wired components returned from overseas for repair and return.

iii

Some warehouse goods are prescribed as posing a significant risk of government revenue loss through illegal diversion. Several AHECC codes are prescribed and place additional reporting requirements on warehouse proprietors on export. The prescribed AHECC codes can be found in: a b c d Schedule 1AA Customs (Prohibited Export) Regulations Schedule 1AAA Customs Regulations Australian Harmonised Export Commodity Classification Guide Schedule 1AAC Customs Regulations

iv

The formal import entry threshold in the ICS is currently $1,000. Under which of the following is that threshold set: a b c d e Item 32A & 32B of the Customs Tariff Act 1995 The Customs Act 1901 The Customs Regulations 1956 Customs By-laws Numbers 0540003 and 0540004 a&d

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A Certificate of Origin for US Imports into Australia under the US-Australia Free Trade Agreement can be obtained from: a b c d The Chamber of Commerce in the US city of origin North American Free Trade Association (NAFTA) The US Customs Service Not required

vi Before dumping or countervailing duties can be imposed by the Minister, it must be established: a Imported goods are coming in cheaply and most Australian importers cannot compete b Material injury is being suffered by importers because of low prices c Australian industry is suffering material injury as a result of imports priced lower than the normal value in their home markets d The export price of imported goods is lower than Australian manufactures e All of the above

vii The term import is defined within the GST legislation to mean: a b c d having the same meaning as provided in the Customs Act 1901 brought to the first Port/ airport in Australia where cargo is to be discharged not defined in Commonwealth legislation import goods into Australia

viii A Customs related law is defined in: a b c d Section 4AC of the Customs Act Section 4B Customs Act Section 4C Customs Act Section 4 Customs Tariff Act

ix Your client is an Australian manufacturer who imports aluminium channel. Some of the imported material is used to manufacture goods for export. In the manufacturing process Australian origin materials are integrated with the imported material. Your client queries what material is eligible for drawback on the exported goods. The client has given pre-export notification to Customs in anticipation of the drawback claim You advise: a Customs duty payable on the entire exported consignment b Customs duty paid on the proportion of imported material used in the machine c Customs duty paid on the proportion of imported material used in the exported product and amount wasted in the production process d There is no eligibility for drawback

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The Trade Description to be applied to porcelain tableware imported as prepackaged goods: Must state the country of origin prominently affixed to the outside package Must have the country of origin permanently marked on each piece and on the packaging Must have size marked in metric measures where included Must have the country of origin permanenty affixed to the outside packages in legible characters e a&c a b c d

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QUESTIONS 2, 3, 4 & 5 REQUIRE YOU TO MAKE USE OF FIVE PAGES OF DOCUMENTATION/ INFORMATION INCLUDING BILL OF LADING, COMMERCIAL INVOICES AND IDM. THIS DOCUMENTATION/ INFORMATION IS IN THE IDM/ADDITIONAL INFORMATION BOOKLET PROVIDED. THE ANSWERS YOU OBTAIN IN QUESTION 2 & 3 WILL BE REQUIRED TO COMPLETE QUESTIONS 4 & 5.

Incorrect answers in Question 2 OR 3 will not result in further loss of marks in subsequent Questions.

QUESTION 2

15 marks

Consider each line on the invoices, provided in the IDM/Additional Information Booklet, separately. From the description and provided documentation, provide the Tariff Item, tariff concession (if applicable) and duty rate applicable to EACH LINE of goods within the shipment.

State ALL Authorities.

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QUESTION 3

15 marks

From the preceding invoice and attached IDM/Additional Booklet information calculate the Total Customs Value for this shipment. Ensure you quote ALL authorities

QUESTION 4

5 marks

From the preceding invoice and attached IDM/Additional Information booklet calculate the Customs Value for each of the four commodity lines in this shipment.

QUESTION 5

5 marks

From the preceding invoice and attached IDM/Additional Information booklet calculate the GST payable on this Taxable Importation.

QUESTION 6

5 marks

Your client, a well shipbuilder wishes to import specialist hand tools to be used in vessel construction and repair. The firm only builds ships in excess of 150 tons. Are the tools eligible for entry under Item 42 of the 4th Schedule?

Please explain your answer.

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QUESTION 7

5 marks

View the items relating to Question 7 in the IDM/Additional Information Booklet. Classify the unit, and determine the applicable rate of duty. Unit is manufactured in Sweden.

The transverser is used to transport PCB's in an assembly line from one line into two or vice versa.

Quote all authorities

QUESTION 8 You are visited in your office by Customs Officers exercising Monitoring Powers a) What MUST the Customs Officers do before entry?

10 marks

b) Should you consent to Customs entry into your premises, list five things that the Officers are authorised to do. Quote ALL authorities

QUESTION 9

5 marks

Your client has imported confectionary, classified 1704.90.00, that was produced entirely in Thailand. The client had omitted to obtain a Certificate of Origin in the prescribed format and the shipment was entered and duty paid at the rate of 5% about two months ago. Your client has now obtained a Certificate of Origin from the Thailand Department of Foreign Trade in the correct format. The client requests you obtain a refund of duty on the shipment. What procedure will you advise?

Quote all relevant authorities.

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QUESTION 10

5 marks

Your client imports health foods and health drinks and has recently received research about Glucomannan from his Japanese supplier. Glucomannan which is classified as a soluble dietary fibre, is derived from konjac flour. Konjac flour has a long history of use in both China and Japan as a food substance and as a folk remedy. Glucomannan products are widely used in Japan and China as general health aids, topically, for skin care and as a thickening agent for foods, among other things.

Your client advises that the study demonstrated that glucomannan has some efficacy in the management of obesity. In an eight-week, double-blind study, 20 obese subjects received 1 gram of glucomannan or placebo daily. Subjects were instructed not to change eating or exercise habits. Glucomannan-supplemented subjects had a significant mean weight loss of 5.5 pounds. Serum cholesterol and LDL cholesterol were significantly reduced, as well, in the treated group.

Your client wishes to import the product and calls you for advice. What will you advise? Quote all authorities

QUESTION 11

5 marks

What are the quarantine clearance procedures and documentation required for the packing of a Full Container Load (FCL) of hard frozen cargo ex China, with a destination outside of a metropolitan area.

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QUESTION 12

5 marks

Your client has received an infringement notice that relates to unreported goods. Your client rings you for advice. a) b) What options are available in relation to the notice? After considering the options available, your client remains dissatisfied. What further course of action is available to your client?

QUESTION 13

10 marks

Your client imports a consignment of French Brandy from France. The goods are classified to tariff item 2208.20.10 / 76

The invoice shows the following details: 120 dozen x 700ml bottles of Jacques Freres French Brandy (43% alcohol by volume content) Invoice Price: Euro()5,204 , FOB, packed, 60 days Exchange Rate = $AUD= Euro 0.59

Using the relevant DCR page in the IDM/Additional Information Booklet, calculate the Interim Countervailing Duty payable for this shipment. State your authorities.

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QUESTIONS 2, 3, 4 & 5
BILL OF LADING for COMBINED TRANSPORT SHIPMENT OR PORT TO PORT
SHIPMENT

B/L NO:

FTYU4356201001

Shipper

Mason Dixon Line

Carrier Mason Dixon Line Ltd. P.O. Box 245 4015 Cartier Drive Liberia

VISSER AUTOMATED SYSTEMS 1313 PONT DU FRANC LYON, FRANCE

Consignee or Order

PERFECT GARDENS PTY LTD 83 DEAN STREET, SUNBURY MELBOURNE, AUSTRALIA TEL. 61-3-32735000
Notify Address SAME AS CONSIGNEE
Pre-carriage by Place of receipt

For Delivery please apply to GLOBAL WORLD FREGHT FORWARDING PTY LTY

75 HORRIE MILLER DRIVE TULLAMARINE VIC 3007, AUSTRALIA TEL (61)3 8267 6001 FAX (61)3 8267 6000
Description of Goods Gross weight kg

Ocean vessel

Port of Loading

FLYING SCOTSMAN V.42S

Port of discharge

LE HAVRE
Place of delivery

MELBOURNE AUSTRALIA

MELBOURNE

HORTICULTURAL EQUIPMENT6650 KG

Marks and Nos; Container No.

Number and kind of Packages

FTYU 2456789

1 FCL SAID TO CONTAIN 4 PKGS HORTICULTURAL EQUIPMENT

. CLEAN ON BOARD ON VESSEL FLYING SCOTSMAN V.42S 24 APRIL 2006

Received by MASON DIXON LINE for shipment by ocean vessel, between port of loading and port of discharge, and frorn place of acceptance to piece of final delivery as indicated above; the goods as specified above in apparent good order and condition unless otherwise stated. The goods to be delivered at the above mentioned port of discharge or place of final delivery. whichever applies, subject to terms contained on the reverse side hereof, to which the shipper agrees by accepting this Bill of Lading. In witness whereof three (3) original Bills of Lading have been signed If not otherwise stated above, one of which being accomplished the other(s) to be void. TOTAL NUMBER OF CONTAINERS OR OTHER PACKAGES OR UNITS RECEIVED BY THE CARRIER: 01 Place of B(s)L -LE HAVRE

PANALPINA

AS AGENT FOR THE CARRIER, Mason Dixon Line

Freight and Charges

PANALPINA

FREIGHT COLLECT
Declared value from Merchant (see clause 7) Prepaid at Payable at

DESTINATION
Number of Original B(s)L

THREE (03)
Date

Apr 23'2006
Gross Weight kg

6650 KG

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Exporter

VISSER AUTOMATED SYSTEMS

1313 PONT DU FRANC LYON, FRANCE

Status of Exporter: (delete terms inapplicable) Manufacturer Grower Producer Supplier Country of Origin FRANCE

Invoice : 5655 Date: 20 April 2006

Sold to: PERFECT GARDENS PTY LTD 83 DEAN STREET, SUNBURY MELBOURNE, AUSTRALIA TEL. 61-3-32735000 Port of Loading LE HAVRE Date of Departure 23 04 2006 Final Destination MELBOURNE

TERMS: FAS LE HAVRE Payment in EURO (), 30 days from invoice date

Vessel/ Aircraft FLYING SCOTSMAN Port of discharge MELBOURNE

Marks and numbers, Quantity and Description of goods (include any discounts)

Selling price to purchaser state currency & whether FOB, CIF etc Amount FAS

1 (one) TRAYVISION 100 TIS 200,000 POLYETHLENE SEEDLING TRAYS (288 cells, depth 3.18 cm) 2,000 Organic biodegradable peat plug packs Relabelling of peat packs Commission for sourcing and including Morclean equipment ( invoice 23390 refers) SUB - TOTAL LESS DEPOSIT PAID 31 OCTOBER 2005 Total due
ENUMERATE the following charges and state if each amount has been included in the selling price to purchaser 1. Value of outside packaging/ containers 2. Labour in packing goods into outside packages/ containers 3. Inland transport and insurance charges to dock/airport area 4. Dock and Port charges 5. Drawback/ remission of duty or taxes Royalties 7. Ocean freight 8. Overseas insurance 9. Other charges including commissions and similar charges (Specify) : (Fumigation) Amount in currency of exporting country 600.00 200.00 850.00 NIL NIL NIL 3,730.00 391.00 800.00 State if included/ Not included INCL INCL INCL NOT INCL Exporters declaration

450,000.00 2,600.00 3,025.00 150.00

3,200.00 458,975.00 45,000.00 413,975.00

Signatory Company VISSER AUTO SYSTEMS Name of Authorised signatory MR E VISSER Place and date of issue LYON APRIL 20, 2006 Signature

NOT INCL NOT INCL NOT INCL

Xwtw e i|x

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Additional Information Rates of Exchange: 20 April 2006 21 April 2006 23 April 2006 24 April 2006 0.5942 0.5949 0.5948 0.5886

The current sales contract is not affected by any relationship between the parties. The shipment was packed into the container at the premises of Visser on 20 April 2006. Petit PierresTransport picked up the container on April 21 for transport to Le Havre.
Tray inspection System (TIS) The TIS optically scans seedling trays and removes plugs that do not meet predetermined standards. Horticultural seedlings are cultivated in sectioned trays for easy handling and are planted from these trays using automatic machines all over the world. In order to optimise the planting process, a Tray-InspectionSystem (TIS)-checks the quality of seedings in trays.

Visser's automated Vision System is capable of inspecting up to 500 trays per hour and identifying the coordinates of cells without seedlings, or cells with rejected seedlings, using the data to control the plug remover that blows out the soil or rejected seedlings from the selected cells. This data is then used to control machinery that blows out the soil or rejected seedlings from the marked cells. Utilising this inspection system led to a 50% labour saving compared to the previous method of visual inspection.

The Visser system consists of a tray feeding belt, a plug remover die for 1 tray size, an lcd camera system including pc, plc, monitor and required software. It also includes a dirt output system consisting of 2 conveyor belts and a scrap tip container ( contents 1000L ).

Specifications: LxWxH: Weight : 3200 x 1000 x 2200 mm +/- 500 kg

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Power : Capacity:

2 kW +/- 500 trays/ hour

Seedling Trays

The unfilled trays are constructed of polyethelene and conform to the size of the plug die in the current machine. Tray specification 288 cells, depth 3.18 cm Peat Plug Packs The peat plugs packs consist of trays filled with compressed stabilized peat moss based on white sphagnum substrata. They are used for the propagation of cuttings and growing of micropropagated plantlets. Seeds can be planted directly into the pot and after germination individual plugs can be planted directly into the soil without disturbing the roots.

In order to conform to Australian marking requirements, the labels affixed to the peat plugs had to be changed. Visser has charged Perfect Gardens for the labour in

changing the labels however Perfect Gardens also paid 542 to Pierres Fine Labels in Lyon for the design, printing and delivery of the adhesive labels to the premises of Visser for the incorporation.

Trailer Mounted high pressure hot water cleaner (See below)

Perfect Gardens also asked Visser to obtain a Trailer Mounted high pressure hot water cleaner from Morclean Industries, IDM is as below. This high pressure hot water cleaner is included in the current FCL consignment. :

Model no T21/200: Consisting of: Triple cylinder water cooled Yanmar with electric start, 3 piston plunger pump, heat exchanger, thermostat, high pressure 50 litre cold water tank with float switch, 100 litre diesel tank with float switch, 50 ft. high pressure hose with manual hosereel. Trailer comes

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complete with road going wheels, brakes and lights including 50mm ball hitch heavy duty gun & lance. The machine operates at 18 litres/ minute at 220,000 kPa.

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Visser have invoiced Perfect Gardens separately for these goods. Invoice 23990 refers: Invoice: 23990 Date: 20 April 2006

VISSER AUTOMATED SYSTEMS

1313 PONT DU FRANC LYON, FRANCE Sold to: PERFECT GARDENS PTY LTD 83 DEAN STREET, SUNBURY MELBOURNE, AUSTRALIA TEL. 61-3-32735000

Supply of Trailer Mounted high pressure cleaner

3,400

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QUESTION 7

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QUESTION 13 DUMPING COMMODITIES REGISTER

R. 0 BRANDY, BOTTLED (ALCOHOLIC STRENGTH BY VOLUME OF LESS THAN 57%) 2208.20.10/76* Interim countervailing duty applies for: France 2208.20(1)

FRANCE INTERIM COUNTERVAILING DUTY

Interim countervailing duty has been determined for all exports of bottled brandy (alcoholic strength by volume of less than 57%) from France as follows: Exporter: All exporters Column 1 DSN Column 2 DESCRIPTION Column 3 INTERIM COUNTERVAILING DUTY Euro/litre of alcohol Column 4 ASCERTAINED EXPORT PRICE FOB, port of shipment, cash A$/lal Column 5 NON-INJURIOUS PRICE FOB, port of shipment, cash A$/lal

Bottled brandy, distilled wholly from grape wine with an alcoholic strength by volume of less than 57%, imported in containers holding less than 5 litres (with a FOB value below A$13 per lal).

1.751

6.54

10.45

Interim countervailing duty initially imposed on 28 June 2001. Goods subject to interim countervailing duty must be entered using the relevant DSN. DIRECTION FOR COLLECTION OF INTERIM COUNTERVAILING DUTY Interim countervailing duty payable is the difference between (a) and (b) below: (a) the lower of: (i) the sum of the ascertained export price and the countervailable subsidy; or (ii) the non-injurious price. and (b) the ascertained export price. =>Change (12/10/2005)

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