URA Online Aptitude Test

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1. Which one of the following Divisions in Customs Department is responsible for

refunds;

Trade Division
Customs Audit
Refunds management
Enforcement
Field services

2. As Uganda and EAC start the implementation of the AFCTA, what will be the
most critical aspect for you as a clearing to build your capacity in to support
Uganda in releasing the benefits of joining.

Client Support
Rules of Origin
The AFCTA members domestic trade laws
Valuation and the Common external Tariff
The AFCTA instruments

3. Under what regime are temporary import of goods declared

IM4
IM6
IM8
IM5

4. The HS Book is considered to be a living document and it is always amended

after a certain period of time due to the various needs, technological changes.
Which year will be the next version?

2027
2017
 2022
2020

5. A C2 is generated under SCT by the;

Originating Country
All these
Destination Country
Transit Country

6. When was SCT implemented

41671
41275
41974
42278

7. The Harmonized System is Comprised of;

21 Sections
20 Sections
19 Sections
23 Sections

8. Pre- SCT challenges included;

Non-tariff barriers along the corridor

Multiple security bond regimes to cover goods while in transit;
All these
Complex Clearance process with multiple customs declarations; (6 customs declarations in
the old clearance process)
Congestion at the port

9. In the Nomenclature, classification of goods is governed by six general

interpretative rules which are supposed to be applied sequentially when applying
them. Among the six rules which one governs classification at the sub-heading
level?
 Rule 6
Rule 1
Rule 2(a)
Rule 3(C)

10. The following regimes are used in SCT processes;

IM4 & WT8

IM4 ONLY
WT8 ONLY
None of these

11. Spear Motors Uganda, located in Nakawa, is a subsidiary of Auto Parts

International, located in Germany. Spear Motors Uganda, buys and imports
thousands of brake pads from Auto Parts International each year. Spear Motors
Uganda, purchases each brake pad from Auto Parts International for exactly $10
per brake pad. Spear Motors Uganda, would like to apply transaction value to its
importations of brake pads. In order to establish that the relationship between
Spear Motors Uganda and Auto Parts International did not affect the price
actually paid or payable, Spear Motors Uganda has submitted to DPC the two
parties’ relevant bills, invoices and financial statements. In fiscal year 2018, the
manufacturing bills and invoices showed that after recovering all costs, Auto
Parts International made a profit of approximately 6 percent on each sale of its
brake pads to Spear Motors Uganda. The financial statements reflected that
Auto Parts International captured a firm-wide profit of approximately 6.3
percent on total brake pad sales in fiscal year 2018. On what basis has Spear
Motors Uganda, demonstrated that the relationship between the two parties did
not affect the price actually paid or payable?

The two parties showed that the price closely approximates a test value.
The two parties settled the price in a manner consistent with the normal pricing practices of
the auto parts industry.
The two parties showed that the price closely approximates the transaction value of similar
merchandise in sales to unrelated buyers in the United States.
The two parties showed that DPC has previously examined the relationship.
The two parties showed that the price is adequate to ensure recovery of all costs plus a profit
which is equivalent to the firm’s overall profit realized over a representative period of time in
sales of merchandise of the same class or kind.
12. One Stop Border Posts (OSBPs) are trade facilitation infrastructural
initiatives at which trucks stop only on one side of the border. Uganda is the only
African Country with One Stop Borders.

TRUE
FALSE

13. When did Uganda ratify the WTO Trade facilitation Agreement?

June 27,2018
January 1 ,2018
February 22,2017

14. A shipment of Evaporative Air Coolers with a documented Ugandan value of

$100,000 was exported to Taiwan for $2000 in repairs, and then reimported into
Uganda. Which of the following value(s) and classification(s) apply to the
Evaporative Air Coolers?

$98,000 under 9802.00.5060

$102,000 under 9802.00.5060
$100,000 under 8479.60.0000 and $2000 under 9802.00.5060
$100,000 under 9802.00.5060 and $2000 under 8479.60.0000
$102,000 under 8479.60.0000

15. A foreign commercial invoice reports a value of $7200 with an addition of

$800 for “distributor fee”, or a total invoice value of $8000. The nature of the fee
charged by the seller was to compensate the exclusive Ugandan distributor who,
by agreement with the foreign seller, receives 10% of all sales in Uganda as a
commission. The distributor receives this regardless of whether or not they
actually make the sale. The $800 would be:

A buying commission; part of the price actually paid or payable.

A selling commission to be added to the price actually paid or payable.
A buying commission to be added to the price actually paid or payable.
Not part of Transaction Value.
A selling commission; part of the price actually paid or payable.

16. Intra-regional cargo is cargo are goods transferred from;

 None EAC Partner state to one of the partner states
South Sudan to One of the partner states
One partner state to another within a customs Territory
DRC to one of the partner states

17. The importer, Company A, imports 1,000 batteries from an unrelated

overseas seller at a price of $0.50 CIF per battery. The overseas seller buys the
batteries in bulk from an overseas manufacturer. Company A requires each
battery to be individually wrapped in polythene with a cardboard backing for
display at retail outlets in the Uganda. Company A provides the polythene and
cardboard backing materials free of charge to the overseas seller. Company A
obtains the materials from a supplier in Uganda at a cost of $40 for the quantity
required to wrap 1,000 batteries. The seller of the imported batteries arranges
for an overseas packing company to carry out the wrapping/packing. This
company charges the seller of the imported goods, $60 per 1,000 batteries for this
service. The documents show that the total overseas freight and insurance costs
totaled $10. What is the customs value in Uganda for a shipment of 1,000
batteries?

None of these
$500
$530
$600
$540

18. The following letter represents the Change in Tariff Heading Origin
Criterion in COMESA Rules of Origin:

C
M
X
S

19. 1. The AFCFTA is full;

African Continental Free Trade Area

African Continental free trade Agreement
African Customs Free Trade Agreement
African Customs Free Trade Area
20. The Baseline for the percentage of entries with top-ups in a given month is?

0.50%
10%
7%
5%

21. Which Regional Economic Community provides for goods of Economic

Importance under its Rules of Origin?

EAC
SADC
COMESA

22. What are the benefits of Post Clearance Audit in Customs Department?

All these
None of these
Contributes to Customs efficiency and trade facilitation
Detects and prevents fraud more comprehensively
Provides input to the Risk Management process of the department.
Ensures greater compliance with Customs laws and regulations
Provides more comprehensive control in areas such as diversion of transit goods to the home
market

23. The Nomenclature has six general Interpretative rules that govern
classification. Which rule governs classification of items that are very new in
International Trade due to the rapid technological Changes and cannot be easily
classified and identified in the HS.

Rule 6
Rule 5
Rule 1
Rule 4

24. Ken Knit Textile Company Ltd is a manufacturer of apparel in Kenya. The
company sources cotton fabrics from Egypt and buttons from China to produce
Polo shirts. Ken Knit sells the Polo Shirts to M/s Turkish Garments in Uganda.
Under what criterion would the shirts qualify for EAC preferential tariff
treatment Rules of Origin 2015?

Value Addition “V”

Wholly Produced or Obtained “P”
Specific Workings and Processing “S”
Change in Tariff Heading “C”
Material Content “M”

25. Which one of the following below does not determine the correct
classification of a product or an item?

Terms of the Heading

Chapter Notes
The Tariff Rate
Section Notes

26. Three customs regimes were implemented under SCT initiative

Importation for temporary export

Importation for home consumption, warehousing and export
Importation for Home consumption and warehousing
Temporary export and Import

27. Goods imported into the Customs Union shall be entered;

Only once in the country of destination and released at the first port of entry to the
destination Partner State
On one regime
In specific areas
None of these

28. Which of the following costs should NOT be added to the price actually paid
or payable to determine the transaction value for an entry of plush toys of a
popular cartoon character?

The sewing pattern designed in Canada, which is provided free of charge by the Uganda
buyer to the foreign manufacturer
The packing costs paid by the Uganda buyer
 The freight costs paid by the Uganda buyer to import the plush toys to his premises
The cost of several high-speed sewing machines provided free of charge by the Uganda
buyer/importer to the foreign manufacturer/exporter to sew the plush toys
The royalty fees related to the plush toys which the Uganda buyer is required to pay as a
condition of the sale

29. The Commissioner may, at any time, require a warehouse keeper to furnish
new security in a different amount or on different terms.

FALSE
TRUE

30. Usage or function is one of the principles used in the arrangement of sections
in the HS. Apply the same principle to identify the section under which luxury
Yacht can be classified.

Section XII
Chapter 87
Section XVII
Section XIX

31. Which of the following is NOT an element of the computed value of apparel
from China?

The value of an assist.

An amount for profit and general expenses equal to that usually reflected in sales of China
apparel for export to Uganda.
The cost or value of materials, fabrication, and processing employed in the production of the
imported goods.
Packing costs.
An amount for profit and general expenses equal to that usually reflected in sales of all
apparel in Uganda.

32. The East African Community-Common External Tariff 2017 version applied
in accordance with East African Community Customs Management Act, 2004
and also as an annex to the Protocol on the establishment of the East African
Community Customs Union. Which Annex is the EAC-CET 2017?

Annex 5
Annex 1
 Annex 6
Annex 14

33. The latest country to join the Regional Electronic Cargo Tracking system is?

Tanzania
Democratic Republic of Congo
Burundi
South Sudan

34. The following offences fall under these sections of the East African
Community Customs Management Act except

Offence involving violence Section 7

Offence to assume the character of an officer Section 198
Offence involving un customed goods Section 200
Offence to make or use false documents Section 203

35. Which one of the following applications of EAC Rules of Origin is not correct
for goods deemed to be originating?

Produced in a Partner state incorporating materials which have not been wholly obtained in
that Partner state provided such materials have undergone sufficient working or processing.
Wholly produced in a Partner state as provided for in Rule 5 of the EAC Rules of Origin
2015.
Wholly produced in a Partner State with materials obtained from other countries outside
EAC.

36. Goods which have been warehoused may be entered either for; Home
Consumption, exportation, removal to another warehouse, Use as stores for an
aircraft or vessel, Re-warehousing

TRUE
FALSE

37. What is SCT in Full

Single Customs Territory

Selectivity Customs Treaty
 Study Customs Territory
Single customs Treaty

38. Which of the following is not a rationale for compounding?

It gives opportunity for reformation of customs law offenders by penalizing them or warning
them without jailing them;
It financially cripples customs law offenders therefore it is a very effective penal
enforcement tool.
To expedite the resolution of customs related cases, disputes or offences without pursuing the
clogged judicial process since there are limited financial and labor resources;
To protect exporters and manufacturers

39. The Commissioner may license any other place as either;

A general warehouse of goods for the warehousing generally; or a private
warehouse only for the warehousing of goods, which are the property of the
warehouse keeper

FALSE
TRUE

40. Goods shall be considered as originating in the Partner state/ Member State if
they meet all the criteria specified in the Rules of Origin and as long as the
production takes place in one of the Partner States.

TRUE
FALSE

41. From the information provided, what would form part of the transaction
value of the shipment in the following scenario? A Uganda business entity
located in Kampala contracts with a manufacturer in Korea to produce 100
electric motors at a cost of $10 per motor. The Uganda business entity also
contracts with a design company in Nairobi to prepare the schematics for use in
the production of the motors at a cost of $5,000. Upon completion, the motors are
exported from Korea to China and used in the manufacture of household
vacuum cleaners at a cost of $100 per vacuum cleaner. The completed vacuum
cleaners are shipped to the Uganda business entity and an invoice from the
China manufacturer in the amount of $10,000 is included in the shipment at the
time of importation.
 $5,000
$11,000
$10,000
$15,000
$1,000

42. The EAC-CET has Tariff bands under which goods imported into the
Community pay import duty. Which of the following below is not considered to
be among the tariff bands?

10%
0%
75%
25%

43. What threshold does Customs use to issue an EAC Simplified Certificate of
origin?

Goods valued at US$ 2,000

Goods valued at less than US$ 2,000
Goods value does not exceed US$1,000
Goods valued at US$ 1,500

44. Goods can be potentially classifiable under two or more headings either
under the terms of Rule 2(b) for any other reason. Which Rule among the GIRs
governs classification of such products?

Rule 6
Rule 3
Rule 1
Rule 5

45. GIR 2 is applicable to article incomplete or unfinished, provided that, as

presented, the incomplete or unfinished article has the essential character of the
complete or finished article. Which of the following cannot be classified by
application of general interpretative rule two?

Items classifiable under Chapter 44

Items classifiable under Section 1 to 5
 Items classifiable under Chapter 87
Items classifiable under Section XVI

46. Rules of origin" are the specific provisions developed from principles
established by national legislation or international agreements ("origin criteria")
applied by a country to determine the origin of goods.

FALSE
TRUE

47. All of the following are provided directly and free of charge by the Uganda
buyer of imported merchandise for use in connection with the production or sale
for export to Uganda of high-end bathroom cabinets. What cost do you advise
the Uganda buyer NOT to include in the transaction value of the bathroom
cabinets?

Luxury high-gloss paint purchased by the Uganda buyer and sent to the Chinese
manufacturer to paint the cabinets
A schematic drawing made in Ireland and provided by the Uganda buyer to the Chinese
manufacturer for the cabinets’ unique top made out of weathered, reclaimed wood
Metal hinges purchased by the Uganda buyer and sent to the Chinese manufacturer for
incorporation into the cabinets
A custom-made circular saw purchased by the Uganda buyer and sent to the Chinese
manufacturer for precision cutting of the cabinet doors
Advertising space on social media purchased by the Uganda buyer for the Chinese
manufacturer to post prices and photos of the completed bathroom cabinets

48. Under the EAC Simplified Trade Regime a simplified Certificate of Origin is
used to facilitate cross border trade for goods whose value is

Exceeding US $ 1000
Not exceeding$ 2000
US $ 500
Exceeding US $ 2000

49. Following ratification of AfCFTA. Uganda is referred to as:

Partner State to AfCFTA.

Members to the AfCFTA
 State Party to the AfCFTA.
Member State to AfCFTA.

50. It is one of the mandates of Customs to enforce Intellectual Property Rights

Infringement

TRUE
FALSE

51. Popularly known as Brexit, the United Kingdom voted in a June 2016
referendum to withdraw from the World Trade Organization (WTO).

TRUE
FALSE

52. What is the excise levy on imported petrol per litre?

600 Shs
800 Shs
1000 Shs
1200 Shs

53. Seller S offers the following quantity discounts on the goods purchased by the
importer prior to their importation.

1. 1 to 49 units - no discount
2. 50 to 99 units - 5% discount
3. Over 100 units - 10% discount

In the first case, importer A purchases and imports 60 units in a single shipment.
The invoice price reflects a 5% discount. In the second case, importer B
purchases 60 units in a single transaction at a price which reflects a 5% discount
but imports them in 3 separate shipments each comprising 20 units. What is the
customs value of the imported merchandise in both cases?

In the first case, the customs value is the price actually paid or payable for the imported
goods reflecting a 5% discount. In the second case, the customs value is the price actually paid or
payable for the imported goods reflecting a 10% discount.
In both cases, the customs value is the price actually paid or payable for the imported goods
reflecting a 10% discount.
In the first case, the customs value is the price actually paid or payable for the imported
goods reflecting a 5% discount. In the second case, the customs value is the price actually paid or
payable for the imported goods reflecting no discounts.
In both cases, the customs value is the price actually paid or payable for the imported goods
reflecting a 5% discount.
In both cases, the customs value is the price actually paid or payable for the imported goods
reflecting no discounts.

54. General interpretative rule 1 to the HS states in part….;

For legal purposes, the classification of goods in the subheadings of a heading shall be
determined according to the terms of those subheadings and any related Subheading Notes and,
mutatis mutandis, to the above Rules, on the understanding that only subheadings at the same
level are comparable.
For legal purposes, classification shall be determined according to the terms of the headings
and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise
require.
For legal purposes, classification of goods shall be determined according to the terms of the
headings and any relative Sections.
For the purposes of this Rule the relative Section and Chapter Notes also apply, unless the
context otherwise requires.

55. Which one of the following DOES NOT apply in determining originating
status for COMESA Rules of Origin

Produced in a Partner State incorporating materials which have not been wholly obtained in
that partner state provided such materials have undergone sufficient working or processing.
Produced in a Member State wholly or partially from materials imported from outside the
Member States or of undetermined origin by a process of production, which effects a substantial
transformation of those materials.
Goods are accepted as originating from a member state if they are consigned from a member
state to a consignee in another member state.
Wholly produced in a Member State.

56. Who is the current chairperson of the EAC Summit?

Yoweri Kaguta Museveni

Salva Kiir Mayardit
John Pombe Magufuli
 Uhuru Kenyatta
Paul Kagame

57. Your client is importing a used aircraft engine manufactured in England

from a South African shipper. Your client has accepted the aircraft engine on
consignment and has promised to find a Uganda buyer for the engine. Your
client will receive a commission on the sale of 5%. The asking price for the
engine is $90,000. The shipper paid all of the transportation costs ($1,000) from
its dock to your client’s dock on a through bill of lading. What is the entered
value of the used aircraft engine?

Transaction value cannot be used on a consignment shipment, the entered value of the
aircraft engine cannot be determined under transaction value and one of the other bases of
appraisement must be applied
Under transaction value, the dutiable value of the aircraft engine is the asking price of
$90,000, minus the $1,000 transportation cost, plus the sales commission due the importer of
$4,500 ($90,000x5%), or $93,500
Under transaction value, the entered value of the aircraft engine is the asking price of
$90,000, minus the $1,000 transportation cost, minus the sales commission due the importer of
$4,500 ($90,000 x 5%), or $84,500
Under transaction value, the entered value of the aircraft engine is the asking price of
$90,000
Under transaction value, the entered value of the aircraft engine is the asking price of
$90,000, plus the $1,000 transportation cost, plus the sales commission due the importer of
$4,500 ($90,000 x 5%), or $95,500

58. Maritime Cargo under SCT can be cleared from two ports namely;

Mwanza and Port bell

Mombasa and Dar-es-saalam
All these
Kisumu Pier and Port bell

59. Which of the following explains the benefits of the Single Customs Territory
to Uganda and other Members?

Reduced time to clear goods

Reduced cost of doing business
Dar-es-salam/ Mombasa is the first port of entry
Clearance systems inter-connectivity
60. A duly authorized agent who performs any act on behalf of the owner of any
goods shall, for purposes of the EACCMA, be deemed to be the owner of such
goods, and shall, accordingly, be personally liable for payment of any duties to
which the goods are liable and for performance of all acts in respect of the goods
which the owner is required to perform under the law.

TRUE
FALSE

61. Which of the following is NOT an EAC organ?

The Council of Ministers

The Summit
The EAC Business Council
The Secretariat

62. SCT objectives include;

Shifting from physical controls to electronic clearance processes

None of these
Coordination between agencies responsible for clearance of goods
Lowering clearance costs of goods within the region
All these
Seamless flow of goods to enhance intra EAC trade

63. An importer enters gas turbines manufactured in China through the Port of
Mombasa. The importer indicates that the basis of appraisal is transaction value
based upon a sale of goods to the importer from the unrelated manufacturer M.
The importer pays a royalty to Company A for the right for manufacturer M to
use patented technology in the production of the gas turbines in China. After
importation, the imported gas turbines are used in the production of other goods
in Uganda using a patented technology for which the importer pays Company B
for the right to use. The contract between the manufacturer and the importer
makes no reference to either Company A’s or Company B’s patented technology,
or the royalty payments to the companies. Which of the following describes the
dutiable status of the royalty payments and the reason for that status is?

None of these.
The royalty payment to the Company A is dutiable; the royalty payment to Company B is not
dutiable. Company A’s patented technology is necessary to produce the imported goods.
Company B’s patented technology goes to the right to use technology in Uganda and the
imported gas turbines are not the subject of the royalty agreement.
The royalty payment to the Company A is not dutiable; the royalty payment to Company B is
dutiable. The contract between the manufacturer M and the importer does not mention Company
A’s patented technology. Company B’s patented technology is used in further production using
the imported goods.
The royalty payment to the Company A is dutiable; the royalty payment to Company B is
dutiable. Both Company A’s and Company’s B patented technology relate to the imported
goods.
The royalty payment to Company A is not dutiable; the royalty payment to Company B is not
dutiable. The contract between the manufacturer M and the importer does not mention the
patented technology or royalty payments.

64. According to the World Trade Report of 2019, services have become the most
dynamic sector of world trade. The services sector in Uganda has equally been
expanding dynamically. What is the single most important driver for the services
sector?

Market liberalization
Increased consumption
Telecommunication
Technology

65. Which of the following workings and processes does not confer originating
status under the EAC Rules of Origin 2015.

Manufacture from materials of any heading except that of a product

Simple assembly of components and parts imported from outside the Partner State to
constitute a complete product.
Manufacture in which value of non- originating materials used does not exceed 70% of the
ex- works price of the product.
Manufacture from completely knocked down kits

66. Which of the following is not a reason why offences are penalized under
Customs Laws?

For purposes of raising revenue for the Government in form of fines.

To protect and facilitate (legitimate) international trade
To protect society from dangerous goods (prohibited polythene bags, cigarettes, chemicals,
electronics etc)
To deter practices of illicit trade
67. Upon importation, an importer inspected its goods, women’s shirts, and
noted that the shirts were made of 98% cotton instead of 100% cotton, and that
the sizing ran small and did not match what was listed on the sewn-in label. The
goods were entered under HS Code 6206.30.30, and duty paid. The importer’s
buyer in Uganda rejected the goods because it was not what the buyer ordered.
The importer ultimately sold the goods to a discounted clothing store at 10% of
what the original buyer agreed to pay. The importer requested a full refund of
duties paid on the goods claiming it was defective. Which of the following is the
best description of what the importer is entitled to in this situation?

The importer is not entitled to any refund of duties under the law.
The importer is entitled to a full refund of duties as the goods are not what the importer paid
for.
The importer is entitled to a partial refund of duties. The goods should be appraised in its
condition as imported, with an allowance made in the value to the extent of the damage.
The importer is entitled to a full refund of duties because the goods are essentially worthless.
The importer is not entitled to a refund of duties because no allowance or reduction of duties
may be made for ad valorem duties paid.

68. One of the principles used in the arrangement of the Harmonised Commodity
Description and Coding System is MATERIAL CONTENT of the items being
classified. Using the same principle, identify the Section under which textile
materials are classified?

Section V
Section XVI
Section XIX
Section XI

69. Classification of goods is a step by step process according to the General

Interpretative Rules stipulated in the Harmonized System nomenclature Which
one of the following is not considered as legal for purposes of classifying goods?

Terms of the Headings

Chapter Notes
Sub- Chapters
Sub-Heading Notes
70. The harmonized System is comprised of 99 chapters for ease of reference in
the process of classifying goods. One of the following chapters below is/are
reserved for future use.

Chapter 1
Chapter 77
Chapters 98 & 99
Chapter 85

71. What is a customs warehouse?

A place for warehousing goods

Means any place approved by the Commissioner for the deposit of unentered, unexamined,
abandoned, detained, or seized, goods for the security thereof or of the duties due thereon
None of these
A place to store goods

72. Which of the following is the competent authority responsible for issuance of
Preferential Certificates of Origin in Uganda.

Uganda Export Promotions board

Uganda Revenue Authority
Uganda National Chamber of Commerce

73. One of the following statements below is not among the principles used in the
arrangement of Sections in Harmonised system.

Stage of processing
Based on material content
Based on usage or function
Number of Headings in the Section

74. Transaction value means:

The price actually paid or payable for the imported goods plus selling commissions,
royalties, packing costs and inland haulage.
The price actually paid or payable for the imported goods plus buying commissions,
royalties, assists, packing costs and proceeds
The price actually paid or payable for imported goods plus selling commissions, royalties,
assists, packing costs and proceeds
The price actually paid or payable for the imported goods
The price actually paid or payable plus buying commissions, royalties, assists, packing and
freight costs

75. The Baseline for which Clearing Agents have to clear cargo from Customs
control is

2 hours
4 hours
2.5 days
3 days

76. ACME, a Ugandan Company, purchases 100 machines from a company in

Japan. ACME will make an initial down payment for the machines. Once the
machines are made, ACME will make another payment. The Japanese company
ships the machines to Uganda on a Free on Board (FOB) basis. Once the goods
are entered into Uganda, ACME will make another payment to the Japanese
company. What charges would NOT be included in the dutiable value of the
machines?

To ensure that the goods are safely shipped to Uganda, ACME hires a company who charges
ACME a fee to load the machines onto pallets and bubble wrap them for delivery to Uganda.
As a part of the price of the machines, the invoice from the Japanese company, presented to
CBP when the merchandise is entered into Uganda, includes a charge to transport the machines
from Nagano to Toyko, Japan so that they could be shipped to Uganda.
ACME hires its sister company in Namave, Industrial park and pays them to develop design
plans and technical know-how and to furnish them to the Japanese company free of charge for
making the machines more efficient.
One of ACME’s customers in Uganda wants modifications made to the machines. These
modifications must be made at the time of production, resulting in a higher cost to make the
machines. ACME does not have the funds to pay the Japanese company for the extra costs of the
modification and the Japanese company will not produce machines with the modification without
first receiving payment for increased production costs, so ACME has its customer send a
payment to the Japanese company for the additional costs of the modifications.
The sales agreement indicates that if the machines are delivered on time, the Japanese
company will receive a bonus payment.

77. Which of the following products are not regarded as wholly produced in a
Partner/Member State?
 Products obtained from live animals within Partner State/ Member State
Slaughtered animals in a Partner State/ Member State
Live animals born and raised in a Partner State /Member State

78. Which of the following is the most recently signed Trade Agreement?

Tripartite Free Trade Area

SADC
African Continental Free Trade Area
Uganda.
ECOWAS

79. A Ugandan importer and a foreign manufacturer enter into a contract for
500 wooden tables. In the contract, the manufacturer agrees to provide 500
tables at a price of $500 per table. The tables are to be delivered in lots of 100
tables on the first of each month for a period of five months. The importer
provided the foreign manufacturer with an assist in the form of special tools. The
tools were purchased from an unrelated party in Kampala, and delivered for free
to the manufacturer abroad. The tools have a useful life of 500 tables. Several
weeks later, the first shipment under the contract, which contains the first 100
tables, arrives in Uganda. Which of the following methods of apportioning the
assist is NOT acceptable?

Apportion the value of the assist in another manner in accordance with GAAP
Apportion the value of the assist over the entire anticipated production
Apportion the entire value of the assist to the second 100-table shipment when it arrives
Apportion the entire value of the assist to the first 100-table shipment
Apportion the value of the assist over the number of units produced up to the time of the first
shipment

80. There are Six general Interpretative Rules in the Harmonized System, which
rule governs classification of packaging materials that are used for repetitive
use?

Rule 3(c)
Rule 4
Rule 5(b)
Rule 2(b)
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