APICS CLTD Exam - Topic 6 Question 109 Discussion

Actual exam question for APICS's CLTD exam

Question #: 109
Topic #: 6

[All CLTD Questions]

A company wants to minimize tariff costs while avoiding the need to file for duty drawback. Which of the following practices would best achieve this objective?

AAdopt Customs Trade Partnerships Against Terrorism (C-TPAT) rules

BUse foreign/free trade zones (FTZs)

CUse an international third-party logistics (3PL) provider

DShip by free on board (FOB) terms

Show Suggested Answer

Suggested Answer: D

by Lilli at Nov 21, 2025, 03:59 PM

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Wynell

9 hours ago

I think using a 3PL is a solid choice too.

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Zena

6 days ago

I practiced a similar question about 3PL providers, but I don't recall how they directly impact tariff costs.

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Emmett

11 days ago

I feel like shipping by FOB terms could help, but it seems more related to shipping responsibilities than minimizing tariffs.

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Jennifer

16 days ago

I'm not entirely sure, but I remember something about C-TPAT rules being more about security than cost savings.

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Ciara

21 days ago

I think using foreign/free trade zones (FTZs) might be the best option since they can help reduce tariffs significantly.

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Marylin

26 days ago

C-TPAT? More like C-TPAIN, am I right? FTZs all the way!

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Ernest

1 month ago

Haha, shipping FOB? That's like the easy way out. Real pros use FTZs!

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Tamra

1 month ago

Using an FTZ is definitely the way to go. Saves a ton on tariffs and paperwork.

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Thurman

1 month ago

Option B seems like the best choice to minimize tariff costs and avoid duty drawback.

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Adela

2 months ago

I'm leaning towards the FTZ option. That seems like it would provide the most direct way to minimize tariffs without needing to worry about duty drawback.

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Lynna

2 months ago

Using a 3PL provider seems like it could be a smart move here. They'd likely have more expertise in navigating these kinds of trade and logistics challenges.

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Valene

2 months ago

Shipping FOB could be a good option to avoid tariff costs, but I'm not sure if that alone would be enough to meet the requirements. I'll have to think through the other choices as well.

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Ngoc

2 months ago

A is interesting too. C-TPAT might help with compliance.

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Dustin

2 months ago

I think B is the best choice. FTZs can really cut costs.

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Merlyn

2 months ago

FTZs can really help with tariff costs!

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Rueben

3 months ago

I'd go with option C. 3PL providers can handle all the logistics and customs stuff for you.

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Carin

3 months ago

Wait, can FTZs really avoid duty drawbacks? Sounds too good to be true.

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Matthew

3 months ago

I'm a bit confused on the difference between C-TPAT and FTZs. I'll need to review those in more detail to understand how they could help with this objective.

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Aileen

3 months ago

Hmm, this seems like a tricky one. I'd want to look into the pros and cons of each option to see which one best minimizes tariff costs while avoiding duty drawback.

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