APICS Certified Supply Chain Professional (CSCP) — Question 278

In order to avoid tariffs and other customs regulations, production process may be redesigned to allow final assembly in the local country. Which of the following options facilitates this approach?

Answer options

• A. Customs-Trade Partnership Against Terrorism (C-TPAT)
• B. Trading bloc
• C. Third-party logistics (3PL)
• D. Blockchain

Correct answer: B

Explanation

The correct answer is B, as trading blocs are agreements between countries that facilitate trade and often reduce tariffs and regulations among member nations. The other options, while relevant to logistics and trade security, do not directly support the strategy of local assembly to avoid customs duties.