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APICS CSCP Exam - Topic 5 Question 133 Discussion

Posted by Ezekiel on Oct 17, 2026 at 08:13 AM

Distribution from which of the following types of sites enables goods to enter a country, undergo further modification, and then be exported without paying customs duties?

Suggested Answer: C

Distribution from a free trade zone (FTZ) enables goods to enter a country, undergo further modification, and then be exported without paying customs duties. FTZs are designated areas where businesses can conduct manufacturing, assembly, and other processes on imported goods without being subject to customs duties until the goods leave the zone for domestic consumption. This allows companies to add value to products and re-export them cost-effectively.

Public warehouse is a facility for storing goods but does not offer customs duty advantages.

Value-added territory is not a standard term in international trade.

Customs clearing house assists with customs paperwork but does not provide duty-free processing.


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5 comments · newest first
MA
Malinda 5 days ago
It's definitely C) Free trade zone.
LI
Lindsey 10 days ago
I’m confused between B and C, but I think free trade zones are definitely about modifying goods without customs fees.
LA
Lai 15 days ago
I feel like I read something about public warehouses not having the same benefits as free trade zones, so I’m leaning towards C as well.
SO
Socorro 20 days ago
I remember practicing a similar question where we discussed value-added services, but I can't recall if that relates to customs duties.
VI
Viola 25 days ago
I think the answer might be C) Free trade zone, but I'm not entirely sure if that covers all the specifics about customs duties.
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