Certified Supply Chain Professional (CSCP) Practice Exam

What is the role of customs in international trade?

1. To facilitate trade flow without regulations

2. To ensure border security and collection of tariffs

3. To impose sanctions against foreign companies

4. To provide legal counsel on trade disputes

The correct answer is: To ensure border security and collection of tariffs

The role of customs in international trade primarily involves ensuring border security and the collection of tariffs. Customs authorities are responsible for monitoring and controlling the movement of goods across borders. This includes verifying the contents of shipments to ensure compliance with laws and regulations, assessing duties and tariffs owed on imported goods, and preventing the entry of contraband or unsafe products. By collecting tariffs, customs helps to regulate trade and generate revenue for governments while also adhering to international trade agreements. This function is critical in maintaining the economic integrity of nations and ensuring that trade occurs within established legal frameworks. While customs does play a part in trade enforcement and regulation, it does not facilitate trade flow without regulations, impose sanctions, nor provide legal counsel on trade disputes, which are outside the traditional scope of customs functions.