Certified Supply Chain Professional (CSCP) Practice Exam

What is the purpose of the harmonized tariff schedule?

1. To classify shipping rates

2. To determine the tariff amount for importers and exporters

3. To outline shipping routes

4. To track cargo movements

The correct answer is: To determine the tariff amount for importers and exporters

The harmonized tariff schedule serves to determine the tariff amount for importers and exporters by categorizing goods based on an internationally standardized system. This classification system, established by the World Customs Organization, uses specific codes to identify products systematically and uniformly. When goods are imported, the code assigned to them dictates the tariff rate that applies, which is essential for calculating duties owed. Understanding these tariff amounts is crucial for businesses engaged in international trade, as it directly impacts pricing, compliance, and overall supply chain cost management. This system ensures that trade regulations are applied consistently, facilitating smoother transactions across borders.