CILT EXAM REVISION Qs and As

1. Mention any five (5) methods custom authorities employ in identifying

goods in order to process them into or out of the country? (2 marks each)

ANSWER
 Animals are electronically tagged using a microchip and have their own
identity papers.
 Bulk tankers are X-rayed to ensure there is nothing else in the tank and
samples can be drawn off to ensure the goods are the same as those
being declared.
 ISO containers can be opened, checked against the manifest and then re-
sealed with a suitable notation being added to the accompanying
documentation.
 Air freight are regularly X-rayed and ‘sniffer’ dogs used to check for
undeclared or dangerous substances.
 Rail freight is treated much the same as some road freight in that the
trucks can be X-rayed and CO2 tests etc. carried out.

2. . Goods travelling within free trade areas, from preferential trading partner
countries or within Customs unions, are subject to much lower levels of
scrutiny than those from some of the more ‘sensitive’ areas of the world.
a) What are free trade areas? (3 marks)
b) Name any preferential trading partner countries. (4 marks)
c) Define Customs union(3 marks)

3. Define customs tariff. (3 marks)

ANSWER
It is a tax that is paid on goods coming into or going out of a country.

4. Under Community Transits, what do you understand by the expressions…

a. Goods in ‘free circulation.
b. Goods not in free circulation’.

ANSWER
Under Community Transits, goods with no duty to pay are in ‘free circulation’, whilst goods
with duty to pay (such as non-EU goods not yet cleared) are ‘not in free circulation’.

5. Many Customs authorities require freight transport operators to take out

guarantees for international journeys. What therefore, is customs-approved
guarantee?

ANSWER
A customs-approved guarantee is an assurance or warranty made by the operator that
certifies that any duty, taxes or tariffs due to the customs authorities will be paid in the event
of any problems with the movement. The guarantee therefore, ensures that the Customs
authority will receive their money, regardless of any problems.

6. Trading countries such as those in the EU and the commonwealth, have

harmonized their customs procedures and therefore, freight movements in
those trading groups are relatively simple. However, when goods are moved to
countries without strong trading or customs links, then the use of carnets is
required. Therefore, what are carnets?

ANSWER
Carnets are tickets that simplifies Customs procedures, whilst at the same time act as a
guarantee Customs authorities that customs tariffs will be paid. Below are some of the more
commonly used carnets:
i. Transports Internationale Routiers (TIR) carnets. These are used in all countries
that are a party to the TIR convention. TIR is a Customs convention which allows
recognition of approved vehicles and containers, in order that they can carry goods
and enter, transit and exit signatory countries with minimum delay.

ii. Admission Temporaire (ATA) carnets. These are used for goods which require
temporary import and/or re-export. Goods such as TV broadcasting equipment,
commercial samples, demonstration samples, exhibition materials or musical
instruments may all need to be accompanied by an ATA carnet.

iii. Carnet de Passage (CdP) carnets. These applies to the temporary import and re-
export of the carrying vehicles themselves, not the goods as under ATA.

7. What are the functions of customs authorities? (10 marks)

ANSWER
Customs authorities…
a. Protect national boundaries,
b. Ensure all taxes and tariffs due are paid
c. Compile trade statistics between countries
d. Ensure the safety and security of all crossing national boundaries.
e. Controls all types of goods and materials in and out of the country.