APICS Certified in Logistics, Transportation and Distribution (CLTD) — Question 25

A transit privilege permits a shipper to:

Answer options

• A. enter a foreign/free trade zone (FTZ) to perform transportation services.
• B. avoid paying tariffs to local authorities.
• C. temporarily stop a shipment to physically transform products.
• D. stop at any port of call without prior notification.

Correct answer: A

Explanation

The correct answer is A, as a transit privilege specifically allows a shipper to enter foreign/free trade zones (FTZ) for transportation purposes. Options B, C, and D are incorrect because they misrepresent the nature of transit privileges, which do not involve tariff avoidance, product transformation, or unrestricted docking at ports.