Certified Supply Chain Professional (CSCP) Practice Exam

What is a tariff?

1. Government regulation on domestic shipping

2. Schedule of taxes and fees imposed on imports and exports

3. Cost of freight services

4. Insurance fees for cargo

The correct answer is: Schedule of taxes and fees imposed on imports and exports

A tariff refers to a schedule of taxes and fees that governments impose on imports and exports. This financial charge is designed to regulate international trade, influencing the flow of goods between countries. By imposing tariffs, governments can protect domestic industries from foreign competition by making imported goods more expensive. Similarly, tariffs can generate revenue for the government and can be used as a tool for negotiating trade agreements. Understanding tariffs is essential in the context of global supply chains, as they impact pricing, sourcing decisions, and overall profitability. It’s critical for supply chain professionals to be aware of how tariffs affect the cost structure of products, influencing decisions from procurement to pricing strategies. In contrast, the other terms mention aspects related to logistics and shipping costs, but do not accurately define what a tariff is.