APICS Certified in Logistics, Transportation and Distribution (CLTD) — Question 106

An agricultural corporation must receive permission from the Country X government to export rice to Country Y because Country Y has an import quota on Country X's rice. The document used to provide this permission is called a:

Answer options

• A. merchandise visa.
• B. duty drawback.
• C. merchandise duty.
• D. customs bond.

Correct answer: B

Explanation

The correct answer is B, duty drawback, as it relates to the refund of duties paid on imported goods that are subsequently exported. The other options are not applicable: A refers to a visa for merchandise, C indicates a tax on goods, and D relates to a guarantee for payment of duties, none of which provide the necessary export permission.