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CIPS L4m4 Ethical And Responsible Sourcing · Free Practice Question Easy

Question 7

Henry is importing cheese from South East Asia into the UK. He is doing some research on the costs and risks of this and has discovered that the product may be considered of 'non-preferential origin'. What implications would this mean for Henry?
  • A he will require insurance
  • B the goods are subject to tariff quotas
  • C there are no duty charges or limitations
  • D the goods are banned in the UK
Reveal correct answer

Correct answer: B

Explanation

Items of 'Non-Preferential Origin' are subject to tariff quotas and other customs commercial regulations. 'Preferential Origin' goods have no duties or tariffs. 


The good news is CIPS have significantly simplified section 3.2 of the syllabus. The new study-guide is much lighter on names of documents and protocols for importing and quotas etc. The focus of this Learning Outcome has shifted more to Inco Terms so I would focus on that for revision, but do make sure you have a basic understanding of documents, law and jurisdiction.


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