Transportation Operations LINCS Practice Exam

Which document would an importer request to take advantage of lower tariffs for shirts from Panama?

1. Commercial invoice

2. Certificate of analysis

3. Certificate of origin

4. Certificate of insurance

The correct answer is: Certificate of origin

To take advantage of lower tariffs for shirts imported from Panama, the importer would request a certificate of origin. This document is crucial in international trade as it certifies the country in which the goods were produced or manufactured. Many countries have trade agreements that allow for reduced tariffs on goods imported from specific countries, and to benefit from these agreements, the importer must provide proof of the origin of the merchandise. In this context, because Panama may have a trade agreement that offers preferential tariffs on shirts, the certificate of origin serves as the necessary proof to demonstrate that the shirts qualify for these lower tariff rates. By providing this document to customs authorities, the importer can receive the financial benefits associated with lower tariffs. The other documents mentioned serve different purposes in the importation process. A commercial invoice details the transaction between the buyer and the seller but does not provide information regarding the origin of the goods. A certificate of analysis generally pertains to the quality or composition of products, which is not relevant to tariff reductions. A certificate of insurance provides proof of coverage for goods in transit but does not influence tariff rates. Therefore, the certificate of origin is the appropriate document to secure lower tariffs for the shirts imported from Panama.