Customs Broker License Exams

October 2011

1. A shipment of barley seeds arrives to the United States from Canada. The seeds are to be sold and exported to Mexico however Mexico refuses entry and the importer of record abandons the seeds. The barley seed shipment is stored in a bonded warehouse for six months without an entry being filed. The seeds are inspected by the U.S. Department of Agriculture (USDA) and are found to be not in compliance with USDA laws/regulations. The warehouse proprietor must take the following action:






2. When there is a net difference of less than ______ between the total amount of estimated duties, fees, taxes and interest assessed in the liquidation of any entry (other than an informal, mail, or baggage entry) and the total amount of estimated duties, fees, and taxes deposited, including any supplemental deposit, the difference shall be disregarded and the entry will be endorsed ”as entered.” In the case of an informal, mail, or baggage entry, the amount of duties, fees, and taxes computed by a CBP officer when the entry is prepared by, or filed with, him/her shall be considered the liquidated assessment.






3. Which date is used when converting foreign currency?






4. Input the data received from a prospective client’s completed CBP Form 5106 into U.S. Customs and Border Protection databases in conformance with Customs Directive 5610-002 Standard Guidelines for the Input of Names and Addresses into the Automated Commercial System (ACS) Files. The relevant data is:

  • Far East Exports, L.L.C. doing business as Oriental Surprise
  • 1040 Sugar Maple Drive
  • Suite 200A
  • Davidsonville, Maryland U.S.A. 21035





  • 5. Imported cargo arrives at the Port of Mobile on January 28th. The importer files proper entry documentation on January 30th, without making requests on the entry documentation. The entry was processed on January 31st and merchandise was authorized for release on July 1st. The entry summary must be filed within ______ :






    6. If an importer submits duties and fees to a broker for payment to CBP after the monies are due, the broker must do which of the following?






    7. ___________ are eligible for drawback.






    8. When ball or roller bearings are classified under subheading 8482.10.50 through 8482.80.00 of the Harmonized Tariff Schedule of the United States what additional information is required on the invoice?






    9. Imported cargo arrives at the Port of Mobile on January 28th. The importer files proper entry documentation on January 30th, without making requests on the entry documentation. The entry was processed on January 31st and merchandise was authorized for release on July 1st. The entry summary must be filed within ______ :






    10. A customs broker may be listed as an ultimate consignee on a formal entry if ________.






    11. Polyethylene retail carrier bags (plastic bags) are manufactured and shipped from the People’s Republic of China (PRC) to Panama. The bags do not undergo any manufacturing or processing in Panama. Subsequently, the bags are shipped via air to Miami, Florida. What duties, taxes and/or fees will be due when the entry summary is filed within the Miami District when the plastic bags are subject to an antidumping duty order from the PRC?






    12. The correct classification of the aforementioned plastic bags in question 11 is ___________






    13. The Toxic Substance Control Act (TSCA) is __________:






    14. The TSCA requires a certificate to be filed ___________ .






    15. NBC Bonded warehouse has had a final warehouse withdrawal of merchandise relating to a specific warehouse entry on December 3, 2010. The warehouse proprietor must review the permit file folder to ensure that all necessary documentation is in the file folder accounting for the merchandise covered by the entry; notify CBP of any merchandise covered by the warehouse entry, general order or seizure that has not been withdrawn or removed; and file the permit file folder with CBP no later than________, unless there is an exemption to the submission requirement granted at the discretion of the port director.






    16. The licensed individual qualifying a corporation’s broker license leaves the corporate brokerage. What is the maximum period before which the corporate brokerage must replace the licensed individual before the corporation’s broker license will be revoked?






    17. Bills resulting from dishonored Automated Clearinghouse House transactions are due within ____ days of the date of the issuance of the bill.






    18. How long after the date of entry for consumption is an importer of record required to retain
    records normally kept in the ordinary course of business pertaining to the importation of merchandise?






    19. What would be the correct classification of women’s footwear with the following characteristics: black colored, open toe, open heel, not covering the ankle, outer soles wholly of rubber and having uppers with an external surface area of 66.4% rubber or plastics, 32.4% glass and 1.2% metal?






    20. What is the correct classification for a wallet with outer surface of textile material containing 90% of silk waste?






    21. What is the CLASSIFICATION for a plastic printed card not containing a magnetic media strip or any electronic integrated circuits?






    22. What is the correct classification of a catalytic converter imported to be used in a motor vehicle?






    23. What is the four-digit heading of human saliva for prophylactic use?






    24. Which of the following shall be considered to have undergone an applicable change in tariff classification or to have met any other applicable requirements to be marked as originating in Canada?






    25. The classification of a man’s knitted shirt made of 60% cotton, 30% polyester and 10% acrylic fabric is __________________.






    26. What is the CLASSIFICATION for a compression-type household refrigerator-freezer combination that has separate external doors for the refrigerator and freezer compartments and has a 396-liter (approximately 14.1 cubic feet) capacity?






    27. When the tariff classification of any article is controlled by its actual use in the United States, three conditions must be met to qualify for free entry or a lower rate of duty unless the language of the particular subheading of the Harmonized Tariff Schedule of the United States applicable to the merchandise specifies other conditions. One of these conditions is proof of use must be furnished within _____ after the date the article is entered or withdrawn from warehouse for consumption.






    28. Canon Medical, Inc. imported antibiotic beads for testing. The beads were imported on July 27, 2011 under a temporary importation bond. The applicable classification is 9813.00.30. What is the maximum total amount of time (including any extensions) that Canon Medical, Inc. has to export the antibiotic beads?






    29. Medics Web intends to import into the United States an aspirin compound that will be manufactured into tablets. The aspirin in tablet form will be exported. The tablets will not be sold in the United States. Medics Web does not want to file a consumption entry and claim drawback upon exportation. Medics Web instructs their broker to enter the merchandise as a temporary importation under bond. Which temporary importation under bond tariff provision is applicable for the aspirin compound?






    30. What is/are the CLASSIFICATION(S) for a new road tractor with a gross vehicle weight (G.V.W.) greater than 36,287 kgs and its tanker semi-trailer when entered together?






    31. What countries are subject to the ”Column 2” rate of duty of the Harmonized Tariff Schedule of the United States?






    32. What is the CLASSIFICATION for peach pulp?






    33. All of the following commodities are subject to the tariff rate quota EXCEPT _______ .






    34. ”Schedule tares” do NOT apply to ______.






    35. Which General Rule of Interpretation (GRI) applies to the classification of cases, packing containers and packing materials?






    36. CBP Form 3299 ”Declaration for Free Entry of Unaccompanied Articles” is used to support the claim for free importation of personal articles not accompanying an individual. What is the correct CLASSIFICATION that can be processed using this form?






    37. The commercial invoice from the seller accompanying the entry package provides the following itemized costs and sales data: 100,000 pieces of fry pans; unit value = $3.00 each; $50,000 identified as a credit for an over-payment by the buyer on a previous transaction, which has already been applied to the selling price; $5,000 of marine insurance; and $10,000 of ocean freight: What would be the transaction value?






    38. A U.S. importer purchased ceramic tiles from a manufacturer located in Madrid, Spain. He paid $21,308 ex-factory. Inland freight from Madrid to the port of Cadiz, Spain cost $225. The price does not include the U.S. duty (8.5% ad valorem for the ceramic tiles), MPF (.21%), and HMF (.125%). What is the correct entered value?






    39. All of the following are additions to the price actually paid or payable EXCEPT _____.






    40. When is a bond rider not used to make changes on a continuous bond?






    41. What is the type of bond that covers an obligation to redeliver widgets when, during transportation, the widgets were delivered to an unauthorized location?






    42. Which statement about an anticipatory breach of a Temporary Importation Bond is incorrect?






    43. One condition of the basic importation and entry bond is that an importer of record will redeliver merchandise if ordered to do so by CBP. If an importer of record fails to timely redeliver a shipment of restricted merchandise, the importer of record is subject to liquidated damages in which of the following amounts?






    44. When a single transaction bond is required or used, the CBP Form 301 be must be presented ________ .






    45. Which of the following may NOT engage in the classification, valuation, and appraisement of merchandise that is reported to U.S. Customs and Border Protection?






    46. ”Customs business” includes all of the following activities involving transactions with U.S. Customs and Border Protection (CBP) EXCEPT __________:






    47. Andrew Balder, an employee of Morris Customs Brokerage (MCB), decides to import dual color lapel men’s dress jackets to take advantage of the latest fashion trends. One of MCB’s clients regularly imports comparable dress jackets and has soaring sales. Which statement is correct?






    48. A BROKER receives his license through the port of Los Angeles, is permitted in the San Diego district and has a national permit. When he fails to pay his national permit annual user fee timely, CBP starts rejecting his entries at the port of El Paso, Texas. The BROKER discovers his permits have been revoked, and now he wants to reinstate them and participate in Remote Location Filing (RLF). The BROKER must submit his payment for a national permit to _____.






    49. IMPORTER filed an initial petition on a liquidated damages case and it was denied. In order to file a supplemental petition the IMPORTER needs to file the supplemental petition within how many days from the date of notice to the IMPORTER (e.g., petitioner)?






    50. A petition for relief from liquidated damages must be filed with __________ .






    51. Your client (an importer) informs you (its broker) that, for the last 3 years, it has falsely reported the country of origin on certain entries covering shipments of shoes. The importer tells you that it has declared Mexico as the country of origin for the shoes and has claimed North American Free Trade Agreement (NAFTA) preference on the entries when the correct country of origin of the shoes was Japan. U.S. Customs and Border Protection (CBP) is validating the country of origin of the shoes. CBP has recently advised the importer, in writing, that CBP has reason to believe that the reported origin of the shoes is false and that CBP has commenced an investigation on the issue. Would you advise the importer to consider filing a Prior Disclosure?






    52. A prior disclosure is considered valid when ________ :






    53. What is the liquidated damages amount for failing to redeliver restricted or prohibited merchandise that fails to comply with the laws or regulations governing admission into the United States?






    Using the below-identified Powers of Attorney (POA) received by Daniel Evans, General Manager, East Coast Logistics, Inc. (an unlicensed person and freight forwarder) from General Merchants Corp. on December 31, 2008 (POA1); the subsequent POA issued by East Coast Logistics, Inc. to Russell Morris doing business as (dba) under the name Quick Brokers (the Customs broker) on January 2, 2009 (POA2); and the understanding that the Customs broker acted as an agent on behalf of the importer of record and made entry on February 1, 2009, March 1, 2009, and May 22, 2009
    54. Which person or entity may act as the importer of record?







    Using the below-identified Powers of Attorney (POA) received by Daniel Evans, General Manager, East Coast Logistics, Inc. (an unlicensed person and freight forwarder) from General Merchants Corp. on December 31, 2008 (POA1); the subsequent POA issued by East Coast Logistics, Inc. to Russell Morris doing business as (dba) under the name Quick Brokers (the Customs broker) on January 2, 2009 (POA2); and the understanding that the Customs broker acted as an agent on behalf of the importer of record and made entry on February 1, 2009, March 1, 2009, and May 22, 2009
    55. Reviewing POA1 which statement is TRUE







    Using the below-identified Powers of Attorney (POA) received by Daniel Evans, General Manager, East Coast Logistics, Inc. (an unlicensed person and freight forwarder) from General Merchants Corp. on December 31, 2008 (POA1); the subsequent POA issued by East Coast Logistics, Inc. to Russell Morris doing business as (dba) under the name Quick Brokers (the Customs broker) on January 2, 2009 (POA2); and the understanding that the Customs broker acted as an agent on behalf of the importer of record and made entry on February 1, 2009, March 1, 2009, and May 22, 2009
    56. Upon review of both POAs, which statement is FALSE.







    Using the below-identified Powers of Attorney (POA) received by Daniel Evans, General Manager, East Coast Logistics, Inc. (an unlicensed person and freight forwarder) from General Merchants Corp. on December 31, 2008 (POA1); the subsequent POA issued by East Coast Logistics, Inc. to Russell Morris doing business as (dba) under the name Quick Brokers (the Customs broker) on January 2, 2009 (POA2); and the understanding that the Customs broker acted as an agent on behalf of the importer of record and made entry on February 1, 2009, March 1, 2009, and May 22, 2009
    57. The Customs broker shall retain POA2 for a period of 5 years from ___________.







    Using the below-identified Powers of Attorney (POA) received by Daniel Evans, General Manager, East Coast Logistics, Inc. (an unlicensed person and freight forwarder) from General Merchants Corp. on December 31, 2008 (POA1); the subsequent POA issued by East Coast Logistics, Inc. to Russell Morris doing business as (dba) under the name Quick Brokers (the Customs broker) on January 2, 2009 (POA2); and the understanding that the Customs broker acted as an agent on behalf of the importer of record and made entry on February 1, 2009, March 1, 2009, and May 22, 2009
    58. Based on POA 2, which statement is FALSE







    59. Upon receipt of the approved CBP Form 3499, a warehouse proprietor is entitled to manipulate merchandise ________ .






    60. Which of the following could be taken into custody as general order merchandise?






    61. Which status may only be requested for merchandise entered for warehousing and transferred to a foreign trade zone for exportation?






    62. What type of dutiable merchandise may be entered into a warehouse without written consent of the insurance company insuring the warehouse in which the merchandise will be stored?






    63. A shipment of lamps was found to be not legally marked with the proper country of origin upon examination at the dock. The port director can demand redelivery of this merchandise within how many days?






    64. If a CBP Form 214 is designated as a Temporary Deposit due to incomplete documentation, a complete and accurate CBP Form 214 must be submitted within _____ days, unless an extension is granted by the port director.






    65. 100 cases each containing twelve 750 ml bottles of 40 proof Scotch Whisky are imported into the United States from the United Kingdom, in compliance with the laws of the United Kingdom regulating the production of Scotch Whisky. What is the correct tariff classification of the Scotch Whisky.






    66. 100 cases each containing twelve 750 ml bottles of 40 proof Scotch Whisky are imported into the United States from the United Kingdom, in compliance with the laws of the United Kingdom regulating the production of Scotch Whisky. The number of gallons is ________ .






    67. 100 cases each containing twelve 750 ml bottles of 40 proof Scotch Whisky are imported into the United States from the United Kingdom, in compliance with the laws of the United Kingdom regulating the production of Scotch Whisky. The International Organization for Standardization country code identifying the country of origin is _______.






    68. Widgets, LLC, a foreign entity incorporated and domiciled in Iceland, may be the ultimate consignee ____________________ .






    69. If the ISF and CBP Form 7501 are provided via a single electronic transmission to U.S. Customs and Border Protection the party making the transmission must be a/an ___________ .






    70. A broker filing electronic entries with U.S. Customs and Border Protection receives error message 510. To correct this error, the broker ______________ .






    71. An example of an entry a broker may file via remote location filing is a/an ________ entry.






    72. What is one of the time frames for disposition of merchandise entered for a trade fair?






    73. What is the maximum period of validity from the date of issue for an A.T.A. carnet?






    74. A carnet is an international customs document which serves simultaneously as a _______:






    75. Your brokerage firm prepares an immediate transportation entry for a shipment of file cabinets with Portland, Maine as the port of delivery. After receiving authorization from CBP and while the merchandise was in transit, the importer tells you that the merchandise has been sold to a customer in Kansas City, Kansas. To facilitate delivery to Kansas City which of the following is the correct course of action?






    76. At the discretion of the _____________ a special permit for immediate delivery may be issued on CBP Form 3461.






    77. Which of the following statements best completes the sentence? Liquidation of an entry may be extended for an additional period ______________.






    78. The Certificate of Eligibility for textile or apparel products under the North American Free Trade Agreement must be signed by an authorized official of the ___?






    79. Richmond files a notice of intent to export unused merchandise, subject to a drawback claim, on Friday, August 1st. He indicates that the merchandise will be exported on Monday, August 4th. Is Richmond in compliance with the applicable regulations?






    80. What Trade Agreement Program is denoted by the Special Program Indicator A+?