Customs Broker License Exams

October 1998

1. Hand painted buttons are imported from Mexico into the United States classified under 9606.21.4000 with a NAFTA claim for reduced duty. The Certificate of Origin indicated an origin criteria B claim under the transaction value method. The buttons were imported from Taiwan into Mexico where they were hand painted in a factory by Mexican laborers. The value of the buttons when imported into the United States. was $1.00 each. The value of the buttons when imported into Mexico was $.05 each. The Mexican laborers were paid $.10 per button for the painting. The cost of the paint which was made in Italy was $.01 per button. Allowable factory expenses were $.02 per button. Which one of the following statement is true?

2. A protest against a value advance for undeclared assists shall be filed within which of the following time periods?

3. Any person whose protest, which did not ask for accelerated disposition, has been denied has how many days to file a civil action in the U.S. Court of International Trade after the date of mailing the notice of protest denial?

4. A petition for relief from liquidated damages shall be filed with which one of the following?

5. An importer imported merchandise from Canada for which he had a valid NAFTA certificate of origin. The merchandise was entered for warehouse. Two years later, the importer arranged for his broker to file a withdrawal for consumption entry on all this merchandise. Although his NAFTA certificate was still valid, the importer failed to alert the broker to the fact that these goods qualified for reduced-duty treatment under NAFTA. The entry liquidated as entered 60 days after the filing of the warehouse withdrawal. Four months after the date of liquidation, the importer suddenly remembered that he should have instructed the broker to claim preferential NAFTA treatment for the merchandise. Which of the following is the BEST METHOD for the importer to obtain a refund of the excess duties paid as a result of the failure to make a NAFTA declaration?

6. An importer entered a shipment of 1,000 plastic shower curtains from Indonesia on October 3, 1996. The commercial invoice showed an ex-works price of $55.00 per curtain, for a total invoice price of $55,000. Based on this information, the broker entered this amount on the entry documents presented to Customs. This entry liquidated no change on January 6, 1997. In December 1997, while going over their year-end records, the importer discovered that the amount listed on the invoice for the shower curtain did not match the amount on the purchase order. The price agreed to was $5.50 per curtain, not $55.00. The importer alerted their broker of the discrepancy and instructed the broker to initiate duty refund procedures. What action should the broker take to obtain a refund for the client?

7. Under the prior disclosure provisions, unless granted an extension by the port director, the time a person has to deposit the actual loss of duties after the port director notifies him/her in writing of the calculations and amounts is which of the following?

8. How much is the penalty for failure by the master of a vessel to produce a manifest?

Incorrect: The answer is "C"19 CFR 162.72(b)(1).

9. Laws involving the importation of helium gas are enforced by the Customs Service on behalf of which one of the following Federal agencies?

Incorrect: The answer is "B"19 CFR 161.2(b)(1).

10. Which of the following is NOT a valid reason for liq1zuidation of an entry to be extended?

Incorrect: The answer is "D"19 CFR 159.12.

11. The net weight of merchandise dutiable by net weight may be determined by which of the following methods?

Incorrect: The answer is "C"19 CFR 159.22(a).

12. Which of the following merchandise is NOT eligible for appraisement entry?

Incorrect: The answer is "B"19 CFR 143.11.

13. Generally, with respect to privileged foreign merchandise, at which time will classification of merchandise subject to a tariff-rate import quota be made only at the higher non-quota duty rate in effect?

Incorrect: The answer is "D"19 CFR 146.65(a)(1).

14. Which one of the following items is NOT excepted from country of origin marking requirements by the J-list?

Incorrect: The answer is "C"19 CFR 134.33.

15. Unless by special authority of the Commissioner of Customs, merchandise in bulk shall not be withdrawn from a bonded warehouse in quantities less than___ in weight or the entire quantity imported, whichever is smaller.

Incorrect: The answer is "A"19 CFR 144.33.

16. The entry summary for merchandise entered for warehouse shall be executed on Customs Form_____.

Incorrect: The answer is "D"19 CFR 144.11(b).

17. In which of the following situations would release of the merchandise prior to the filing of entry summary and the deposit of estimated duties be most appropriate?

Incorrect: The answer is "E"19 CFR 142.13.

18. Generally, if there is a question as to whether merchandise being admitted into a foreign trade zone is prohibited, which of the following is most accurate?

Incorrect: The answer is "A"19 CFR 146.31(a).

19. Which one of the following facts would exclude a product from GSP eligibility?

Incorrect: The answer is "D"19 CFR 113.13 HTS GN 4(d).

20. Which of the following is NOT an option available to an importer when merchandise is imported in excess of an absolute quota?

Incorrect: The answer is "A"19 CFR 132.5(a).

21. When goods are, prima facie, classifiable under two or more headings, which of the following is a true statement?

Incorrect: The answer is "B"HTS GR 3(a),(b),(c).

22. For importations by mail, any packages containing merchandise subject to an absolute q1zuota that arrive after the quota is filled shall be________

Incorrect: The answer is "A"19 CFR 132.22.

23. Which of the following statements concerning carnets is FALSE?

Incorrect: The answer is "D"19 CFR 114.31(b).

24. Generally, except where merchandise is released directly to the carrier, one of the following types of evidence of the right to make entry shall be filed in connection with the entry of merchandise imported by common carrier EXCEPT which of the following?

Incorrect: The answer is "A"19 CFR 141.11(a)(1).

25. Which following change to a Customs bond may be accomplished by a rider?

Incorrect: The answer is "D"19 CFR 113.24.

26. Which of the following is the proper classification for Russet seed potatoes in containers weighing 45 kg net weight?

Incorrect: The answer is "C"HTS Section II.

27. Which of the following is NOT considered part of the �Customs territory of the United States�?

Incorrect: The answer is "D"19 CFR 101.1.

28. The ad valorem merchandise processing fee is assessed on which of the following?

Incorrect: The answer is "E"19 CFR 24.23(c).

29. The proprietor of a Customs warehouse shall comply with all but which one of the following record keeping requirements?

Incorrect: The answer is "D"19 CFR 19.12.

30. Commercial cargo unloaded from a commercial vessel is subject to the harbor maintenance fee in which of the following situations?

Incorrect: The answer is "E"19 CFR 24.24.

31. Chinese silk is imported into the United States and cut to length and width. The cut silk is then exported to the Dominican Republic, where the edges are sewn to make designer scarves. When the scarves are imported into the United States, which one of the following is true?

Incorrect: The answer is "E"19 CFR 10.25.

32. For ocean shipments, the value of U.S. components assembled abroad that can be subtracted from the full value of the assembled article is their cost____.

Incorrect: The answer is "A"19 CFR 10.17.

33. Which of the following products imported from Germany must show that it is in compliance with the EPA Federal antipollution emission requirements before it is entitled to admission to the United States?

Incorrect: The answer is "D"19 CFR 12.73(e)(1-5).

34. A shipment of merchandise consists of 116 boxes of kitchen dining table tops and legs. There are 100 finished flat wood table tops with holes drilled on the underside to accommodate four legs per table top. Each table top is individually boxed. There are 16 boxes, each containing 25 turned wooden table legs that are straight with one end cut on an angle. Which of the following is the correct classification of this shipment?

Incorrect: The answer is "C"HTS Chapter 44 Note1(o).

35. Yarn is made into knit fabric and cut into polo shirt components in the United States. The cut shirt components and German-origin buttons are exported to Mexico, where they are sewn into men�s polo shirts. If an importer wants to pay the least amount of duty, which of the following tariff provisions is the best choice?

Incorrect: The answer is "E" 9802.00.90 .

36. Carpenter Joe of Acme Corporation boards a plane in the United States and takes the company�s $5,000 German super drill with him to repair the hardwood floor in the Versailles Palace in France. After the job is complete, he decides to stay there, and never return to the United States. His boss orders him to ship the super drill back to the United States via airmail. Which of the following tariff provisions should Acme Corporation, as the importer, use to avoid paying duty on the super drill?

Incorrect: The answer is "C" 9801.00.85 .

37. Smith Company exports U.S. duty paid, Mexican-origin molds from the United States to Hungary. Smith Company imports Mexican origin molds into the United States and pays the appropriate Customs duties. Smith Company then exports the molds to Hungary. In Hungary, Giro Company uses these molds under a lease agreement with Smith Co. to produce flawless and expensive porcelain statues. The molds are imported without having been advanced in value by Smith Company into the United States from Hungary. Which of the following is the correct classification for the molds?

Incorrect: The answer is "B" 9801.00.20 .

38. Cow corium, the layer of cow hide beneath the skin, is cut into 2 x 6 inch rectangular strips in South America. This layer beneath the skin is identified as parings, a waste product of the tanning process, because only the skin itself is used to make leather. After the cow corium is cut, it is coated with beef flavoring, dried, and flavored to make raw hide dog chews. What is the correct classification of the raw hide dog chews?

Incorrect: The answer is "A" 0511.99.2000 .

39. A shipment consists of guitar cases made with the outer surface of leather specially fitted and shaped to hold an acoustical guitar. The value of the cases is $20.00 each. Which of the following is the correct classification of the cases?

Incorrect: The answer is "A"HTS GRI 5(a).

40. What is the correct duty for 30 boxes of fresh cucumbers weighing 75 kg each, entered on June 30, 1997, from Mexico with a valid NAFTA claim?

Incorrect: The answer is "C"HTS Section II.

41. Which of the following ports is NOT a Customs service port?

Incorrect: The answer is "D"19 CFR 101.3(2).

42. What is the column 1 duty rate for unmanufactured tobacco, entirely from Argentina, partly stemmed, not threshed, not containing over 35 percent wrapper tobacco, flue cured, to be used in cigarettes and not being entered pursuant to the provisions of HTS Chapter 24 Additional U.S. Note 5?

Incorrect: The answer is "E"HTS Section IV.

43. Which is the appropriate symbol for an article that is eligible for reduced Merchandise Processing Fee, and a claim is made under the Agreement on Trade in Civil Aircraft?

Incorrect: The answer is "A, C"HTS GSN 3(c).

44. Which of the following is the correct classification for a pair of women�s lined dress gloves made of artificial fur and constructed with seams and full fourchettes?

Incorrect: The answer is "C"HTS Section VIII.

45. Which of the following is the correct classification of a dog collar made of braided nylon?

Incorrect: The answer is "C"HTS Section VIII.

46. A men�s belt is made in Canada. Webbing made by braiding textile material and leather together is sewn to two leather rectangular strips with the leather portion facing outward when worn. The leather strips are then each attached to a metal belt buckle to complete the belt. Which of the following is the correct classification of the belt?

Incorrect: The answer is "A"GRI 3(b).

47. A domestic water dispensing machine is imported. It consists of a closed metal frame that acts as a stand and a case. It holds a large bottle of water inverted on top. The water flows by gravity into two small tanks inside the metal frame. One tank is fitted with an electrical element that heats the water. The other tank is fitted with electric cooling coils that cool the water. The two tanks are of equal size. On the outside of the frame case are two spouts that are valve operated. One spout is for the hot water and one is for the cold water. They are side by side and are of equal size. Which of the following is the correct classification of this water machine?

Incorrect: The answer is "E"GRI 3(c).

48. Which of the following is NOT a statistical requirement for imported goods when making Customs entry or withdrawal of goods?

Incorrect: The answer is "E"GSN 1(a).

49. Which of the following is NOT legally binding when classifying goods?

The correct answer is "C"GRI 1.

50. Tote bags made of molded polyethylene plastic mesh and measuring approximately 17 1/2 inches wide at the bottom and 19 inches wide at the top are imported into the United States. The openings in the mesh are approximately 1/2 inch by 1/2 inch. The bottom of the totes are made of solid plastic and come about 13/16 inch up the mesh sides. The bags are approximately 16 inches high from the bottom to the top of the integral non-flexible handles. The tote bags will be used repeatedly to carry groceries, beach items, blankets, and similar items. Which of the following is the correct classification of the imported tote bags?

Incorrect: The answer is "B" 3926.90.9890 .

51. Generally, if a class of merchandise from the same country-of-origin subject to the same statistical reporting number is included in more than one invoice, the importer:

Incorrect: The answer is "A"19 CFR 141.61(e).

52. When advising a client or making representation to secure employment, a broker shall do which one of the following?

Incorrect: The answer is "B"19 CFR 111.38 19 CFR 111.39.

53. The Secretary of the Treasury issues an order vacating the prior order of suspension of a broker�s license. The Commissioner shall do which of the following?

Incorrect: The answer is "A"19 CFR 111.77.

54. Which of the following is the Customs definition of an �active client�?

Incorrect: The answer is "B"19 CFR 111.29(b)(2)(ii).

55. Jane Smith received her broker�s license, permit, and a filer code in 1995. In 1996, she received approval to conduct Customs business under the fictitious name of ABC Customs Brokerage. The following year, for tax purposes, she incorporates under the name of ABC Customs Brokerage, Incorporated. Jane is the only officer of the corporation. She now wishes to conduct Customs business on behalf of her clients as ABC Customs Brokerage, Incorporated. Which of the following is true?

Incorrect: The answer is "D"19 CFR 111.11 19 CFR 111.36(a).

56. American Broker Group, Inc., (ABG) is located in New York. They have offices and are permitted to conduct Customs business in New York, Miami, Los Angeles, and Dallas. The individual qualifying the permit in Dallas leaves the company. Which of the following statements is correct?

Incorrect: The answer is "E"19 CFR 111.45(b).

57. Unless other notification is given, the records required by 19 CFR 111 to be kept by a broker shall be retained at what location?

Incorrect: The answer is "A" CFR 111.22(a) .

58. With regard to relations between a licensed broker and an unlicensed person, which of the following statements is true?

Incorrect: The answer is "E"19 CFR 111.36.

59. When must the drawback entry and all documents necessary to complete a drawback claim be filed?

Incorrect: The answer is "B"19 CFR 191.61.

60. Drawback may not be provided for which of the following?

Incorrect: The answer is "D"19 CFR 191.3 19 CFR 191.4.

61. Which of the following classes of Customs warehouses is for the purpose of cleaning, sorting, repacking, or otherwise changing in condition, but not manufacturing, imported merchandise, under Customs supervision and at the expense of the proprietor?

Incorrect: The answer is "E"19 CFR 191.1.

62. A client has provided a customs broker with a valid NAFTA certificate of origin covering a shipment of merchandise from Mexico for which entry was made and duties paid six months earlier. The client has requested a refund of the duties paid. The entry has been liquidated and the protest period is over. As the client�s broker, what action, if any, would the Customs broker take?

Incorrect: The answer is "E"19 CFR 181.31 19 CFR 181.21.

63. The general requirements for the electronic entry of imported merchandise through the Customs Automated Commercial System (ACS) allow filers to store records and electronic data in centralized locations provided there is notification of whom?

Incorrect: The answer is "C"19 CFR 143.37.

64. Which of the following is the proper method of country-of-origin marking for a ceramic clock case?

Incorrect: The answer is "C"19 CFR 134.

65. Drapes pour la Maison, a Canadian bedding company, has decided to change its manufacturing procedures. The cotton is spun into yarn in India, the fabric woven in Pakistan and sent to UAE for bleaching and dyeing. The fabric is then sent in one piece to Canada, where the fabric is cut to size, quilted with United States polyester fill and bottom fabric, hemmed, and packaged for export to the United States What is the country of origin of the quilted bedspreads?

Incorrect: The answer is "D"19 CFR 102.21.

66. Which of the following statements is FALSE?

Incorrect: The answer is "B"19 CFR 102.11.

67. Merchandise transported in-bond by land, except transit air cargo provided for in 19 CFR 122.118, destined to a final port in the U.S., shall be delivered to Customs at the port of destination within how many days after the receipt by the forwarding carrier at the port of origin?

Incorrect: The answer is "C"19 CFR 18.2(c)(2).

68. An importer wants to bring in seamless, medical, disposable plastic gloves from Malaysia. Which of the following is the correct classification of the gloves?

Incorrect: The answer is "A"HTS Chapter 39 Sec VII.

69. How is a specially fitted case containing the musical instrument for which it was intended classified upon entry?

Incorrect: The answer is "B"GRI-5(a),HTSUS.

70. Which of the following containers is classified separately from its contents?

Incorrect: The answer is "B"GRI-5(a),HTSUS.

71. A shipment of 1,000 black felt witches hats, imported from China, is being imported on September 25. Which of the following is the correct classification of the hats?

Incorrect: The answer is "C,E"HTS XII.

72. Which of the following is the correct classification of a shipment of leather insoles wholly of composition leather? 20

Incorrect: The answer is "D"HTS XII.

73. A broker shall forward to Customs duties and fees received from a client on or before the due date or within how many workings days, if receipt was after the due date.

Incorrect: The answer is "A"19 CFR 111.29(a).

74. What is the maximum monetary penalty for transacting Customs business without a license?

Incorrect: The answer is "A"19 CFR 111.91.

75. When is renegotiation of the price disregarded in determining transaction value?

Incorrect: The answer is "A,C"19 CFR 152.103(a)(4).

76. Which of the following charges is a dutiable charge under transaction value when included in the price actually paid or payable?

Incorrect: The answer is "D"19 CFR 152.103.

77. Assuming that USA Corporation established a wholly-owned factory in Malaysia and transaction value or deductive value does not exist for merchandise produced by the factory, which costs would NOT be part of the computed value of the merchandised imported by USA Corporation?

Incorrect: The answer is "E"19 CFR 152.106.

78. Which of these procedures constitutes an �assembly� operation for purposes of classification under 9802.00.80, the provision for foreign articles assembled with U.S. components?

Not Scored .

79. For which one of the following importations could transaction value be used as the basis of appraisement?

Not Scored .

80. Which of the following is the correct classification of a shipment of canned imitation crabmeat (Alaskan pollock)?

.

81. Which of the following foreign trade zone status merchandise is NOT allowed to be transferred 22 for entry into a Customs bonded warehouse?

Not Scored .

82. A client informs a Customs broker that she would like to export certain goods to Canada and Mexico for repairs or alterations, some pursuant to warranty agreements with suppliers located in both countries and some which are not subject to warranty agreements. The client has heard that, under the North American Free Trade Agreement (NAFTA), goods sent to Canada and Mexico for repairs or alterations provided for in the subheadings of the Harmonized Tariff Schedule, 9802.00.40 and 9802.00.50, are free of duty. The client would like the broker to confirm this prior to commencing the export operation. Based on the above paragraph, which of the following statements is correct?

Not Scored.

83. Which of the following items may NOT be directly exported?

Incorrect: The answer is "C"19 CFR 18.25.

84. What are the consequences for an importer who is substantially or habitually delinquent in the payment of Customs bills?

Incorrect: The answer is "D"19 CFR 142.25 19 CFR 142.26.

85. A written request to exempt a broker from keeping a current record of transactions in a prescribed format, in addition to the records of account required by 19 CFR 111.22, shall be addressed to whom?

1. A patent owner in the United States believes merchandise is being imported into the United States which infringes upon the patent. Which of the following is the patent owner NOT required to provide to Customs in order for Customs to conduct a patent survey?






Customs files.

2. Merchandise is exported from Germany on September 29 and arrives in the port of New York on October 1. An entry is filed on October 2, and on October 6 the entry summary is filed with the appropriate duties and taxes. The rate of duty that applies is determined by which of the following?






3. Which of the following is NOT required for a facility to be accepted as an approved Customs bonded warehouse?






4. The �date of exportation� referred to in section 402, Tariff Act of 1930 means which of the following?






5. Which of the following is the correct Value Hierarchy under which appraisement occurs?






6. Which date is used when converting foreign currency?






7. What is the time limitation for filing a claim on an entry for a clerical error under 19 USC 1520(c)(1)?






8. Which of the following is the minimum dollar amount difference required to file a protest?






9. Generally, which of the following is NOT eligible for Informal Entry?






10. Which of the following constitutes the time limit within which merchandise must be exported or destroyed under the provisions of Unused Merchandise Drawback (Same Condition Drawback)?






11. Upon receipt of an inbond shipment at the port of destination, the bonded carrier shall surrender the inbond manifest and notify the port director of merchandise arrival within which of the following?






12. Clark is a licensed broker and is employed by ABC Brokers, Inc. in Los Angeles. Clark does not have an individual permit but qualifies the permit for ABC. Linda, Clark�s friend, is importing some jewelry for sale at a convention. Linda knows Clark is a broker and she wants him to enter the merchandise on her behalf. Linda asks Clark if he can discount his fee since she spent so much on the jewelry. Based on the above paragraph, which of the following statements is correct?






13. Generally, a broker�s license is required for which of the following transactions?






14. Which of the following is the correct classification for dyed warp knitted fabric weighing more than 100 g/m2 , consisting of 85% cotton and 15% manmade fibers, and is 60 cm wide?






15. How would one classify a shipment of poplin or broadcloth 100% manmade filament woven fabric?






16. An inquiry by Customs is being made concerning the importation of merchandise by a certain importer through the port of Miami. The importer is instructed to meet with Customs in Miami over this matter. He chooses not to participate directly but wishes to have his agent, a Customs broker permitted only in Los Angeles, represent him. Based on the above paragraph, which of the following statements is correct?






17. The terms of sale stated on the invoice are Freight On Board (FOB). Which of the following deductions are allowed when determining the entered value?






18. The legal liquidation date of a formal entry is which of the following?






19. Which of the following is NOT an addition to the price actually paid or payable when appraising merchandise under Transaction Value?






20. Merchandise is subject to an absolute quota and the invoice lists the quota category as 314. Upon review of the entry documentation and classification it is determined that the merchandise is classifiable as category 315. The quota for category 315 is closed, however the category for 314 is still open. Which of the following actions should be taken?






21. As a general rule, how many days does the importer have to file the entry summary?






22. Which of the following CANNOT transport merchandise from one port to another in the United States in bond without the request of the party in interest from the port director?






23. For the purposes of quota, the time of presentation is which of the following?






24. The Glass Company has a shipment of engraved wine glasses. The invoice quantity is 400 boxes valued at $8.00, FOB per box. The invoice also shows that the glasses have lead content by weight of 22% and that each box contains four glasses. Which of the following is the correct classification of the wine glasses?






25. Which of the following is the correct classification of plastic inflatable mattresses designed to be used in the home?






26. Which of the following is the proper classification of hair combs made of hard rubber with an invoice price of $0.50 per dozen?






27. Which of the following is NOT a responsibility of a foreign trade zone operator?






28. Mary, a licensed broker who is the qualifying member of a licensed partnership retires from the brokerage. Which of the following statements is correct?






29. Which of the following CANNOT sign drawback documents?






30. Key Largo Customs Brokerage (KLCB), a licensed broker, decides to import life jackets (6307.20.00) to cash in on the big tourist business in the area. One of their clients regularly imports similar items and does a lucrative business. Which of the following statements is correct?






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






32. A principal on a basic importation and entry bond agrees to all EXCEPT which of the following conditions?






33. If an article is incomplete or unfinished and has the essential character of the complete or finished article, how should it be classified using the Harmonized Tariff Schedule (HTS)?






34. A jewelry company plans to import a pair of gold earrings in a flimsy cardboard box. The earrings have a value of $5.00 per pair and the box has a value of $0.50. Using principles of classification which of the following classifications is correct?






35. Failure to file a timely entry summary with the applicable duties, taxes, and fees will result in which of the following?






36. Which of the following is NOT a program where special tariff treatment may be provided under the Harmonized Tariff Schedule of the United States?






37. Which of the following is the correct classification of a shipment of floral picks consisting of plastic holly leaves and plastic holly berries that are assembled by a snap together method?






38. Who is required to sign a NAFTA certificate of origin?






39. Which of the following may be listed as co-principals on a bond?






40. Jewelry boxes are being imported into the United States. Prior to retail, the boxes will be filled with a pair of base metal cuff links. The jewelry boxes are made of plastic and their exterior surface is covered with a flocked manmade fiber textile. Which of the following is the correct classification for the jewelry boxes?






41. Of the following, which is NOT subject to protest under 19 USC 1514?






42. What is the timeframe within which a filer has to correct a 19 USC 1520(a) clerical error that resulted in the deposit or payment of excess duties, fees, or charges?






43. An application for special permit for immediate delivery supported by proper documentation should be made on which of the following Customs forms?






44. An importer may file a claim for preferential tariff treatment under NAFTA in accordance with 19 USC 1520(d) within which time frame?






45. Which of the following is NOT an allowable foreign trade zone status?






46. A bonded warehouse proprietor must file a Customs Form 300 (except a smelting or refining warehouse) with the Field Director, Regulatory Audit, at which of the following times?






47. Whenever 19 CFR refers to the term �possessions of the U.S.� it means which of the following?






48. Which of the following is true about a Harbor Maintenance Fee (H.M.F.)?






49. Which of the following is true about a broker status report?






50. Once Customs issues written notification advising a broker or other person of an allegation or complaint in which a monetary penalty will be assessed against the broker, how many days does the broker have to respond in writing?






51. A warehouse entry is filed in January by SKM brokerage firm on behalf of the importer of record, Joe Smith, for 5,000 wrenches. Joe transfers ownership to his sister, Susan Jones, in February. In March, Joe calls his broker and asks the broker to file a warehouse withdrawal on his behalf for 1,000 of the wrenches. Based on the above paragraph, which of the following should be done by the broker?






52. The ABC Company imports dead rats from Iceland for resale to labs in the United States. They use BC Lines as their shipper and Johnson as their broker. XYZ Labs Inc. buys these rats on the domestic wholesale market. Which of the following parties concerned is NOT required by Customs to keep records pertaining to this importation?






53. The rules of origin as outlined in 19 CFR 102 are established to determine which of the following?






54. Which of the following represents the required additions to the price actually paid or payable?






55. Which of the following costs does NOT contribute toward GSP eligibility?






56. Mark receives his individual Customs broker�s license. He opens an office in Mobile, Alabama and secures a permit to conduct Customs business from the Mobile port director. Mark is approached by an importer in Gulfport, Mississippi who wants to hire Mark to clear his merchandise at the port of Gulfport, part of the Mobile Customs district. Which of the following must Mark do to be able to transact Customs business as a broker in Gulfport?






57. In classifying a composite article made of three different components, one consisting of steel, the second of brass, and the third of aluminum, which of the following information would be of greatest concern in determining which of three chapters (Chapter 73, Chapter 74, or Chapter 76) should be used?






58. Which of the following statements concerning carnets is true?






59. Which of the following items is NOT required on the sales ticket file by the proprietor for a Class 9 warehouse?






60. Which of the following is the correct classification for freshly cut Douglas-fir Evergreen Christmas trees imported from Canada?






61. For statistical reporting purposes, the country of exportation should NOT be the country of origin under which of the following circumstances?






62. Which of the following records is a broker NOT required to retain at his/her place of business?






63. ABC company imports a shipment of cherry flavored cough drops from China packaged for retail sale. Sugar is the main ingredient in the cough drops and they contain 8 mg of menthol per dose. Which of the following is the correct classification for the cough drops?






64. A shipment of dried, shelled kidney beans is imported from Korea. The merchandise is packed in 20 pound bags. Under which of the following subheadings should the merchandise be classified?






65. An upscale gift shop in New York City is importing toothbrushes. The handle of the toothbrush is composed of porcelain with a 14 karat gold monogram. The toothbrushes are valued at $125.00 per piece. Which of the following is the correct classification for the toothbrushes?






66. Three thousand AC power-operated kitchen timers with opto-electronic displays, without jewels, were imported January 1, 1994 and duty paid. On June 30, 1997 the timers were exported to China to be repaired under warranty. The total value of the 3,000 timers is $3,000. The cost of the repairs made in China totals $1,500. The timers were re-imported on July 31, 1997. Which of the following is the correct Chapter 98 classification?






67. S&W Brokerage Services has moved to a new location in Dallas. This new office does not provide enough filing space for inactive records. S&W is allowed to destroy records beyond which of the following retention periods for records received or generated by a broker?






68. A professional hockey team is importing cowhide leather ice hockey gloves from Canada. The gloves have seams and are lined to keep the players� hands warm during the game. Which of the following is the correct classification for the gloves?






69. On September 30, 1997, a shipment of 1,000 complete watch dials was imported. A month later, 1,000 14 karat gold watch chains were imported, to be assembled to the watch dials in the United States. Which of the following is the correct classification for the watch chains?






70. The Finnish vessel Viking Star is a fish factory ship trawling for sardines. When caught, the fish are salted, cooked, and canned. The ship makes port in St. Petersberg, Russia, where the cans are warehoused. They are then shipped to Brussels, Belgium, where they are packed in retail cardboard boxes. From Brussels they are shipped via a German ship to Felixstowe, England, where they are put in containers for shipment to the United States. Which of the following is the correct country of origin?






71. A broker has been granted permission by Customs to retain records on microfilm. For Customs purposes, which of the following CANNOT be retained on microfilm?






72. Dr. Smith, a pediatrician, imports thermometers. These thermometers are inserted into the ear, and the patient�s temperature is recorded automatically on a digital display. Which of the following is the correct classification of the thermometers?






73. Which of the following is a Customs service port ?






74. Mr. Jones is a bonded carrier, but not a licensed broker, transporting merchandise from Vancouver, Canada, to San Francisco, California. The U.S. port of arrival is Blaine, Washington. Ms. Smith, the owner of the goods, asks Mr. Smith to file an immediate transportation entry on Ms. Smith�s behalf. Based on the above paragraph, which of the following statements is the most correct?






75. Which of the following articles is NOT considered classifiable as a finished article under GRI-2(a)?






76. A bonded warehouse proprietor is NOT responsible for which of the following?






77. Which of the following shipments would NOT be excepted from the country of origin marking regulations?






78. For legal purposes, classification shall be determined by which of the following principles?






79. Which of the following is the correct classification for a baseball?






80. Which of the following would NOT be considered a violation of the country of origin marking statute, 19 USC 1304?






1. Ed files a protest on a CF-19 and checks the box indicating that further review is sought. As an explanation for his protest Ed simply states: “Customs liquidated the entry incorrectly.” Is Ed’s protest sufficient under the regulations and why?






2. An incorporated candle company imports wax from France into Cincinnati and makes a Class 6 warehouse entry. The wax is manufactured into candles in the warehouse. Upon withdrawal of the candles from the warehouse for exportation to Canada, a Customs Form 7501 is filed showing $1200 in estimated U.S. duties on the basis of the unmanufactured wax. Upon entry into Canada, the equivalent of U.S. $100 is assessed and paid on the exported candles. How much duty must the candle company pay to U.S. Customs?






3. Fish pellets classified in 2301.20 of Norwegian origin; bones classified in 0506.90 of Brazilian origin; and animal products classified in 0511.99 of German origin are imported into Canada where they are mixed together into animal fertilizer and correctly classified under 3101. A NAFTA certificate of origin is completed and signed when the animal fertilizer is imported into the United States. For marking purposes, which country of origin is required on the animal fertilizer?






4. Failure to file a broker status report by ____________ of the reporting year will result in the suspension of a broker’s license by operation of law.






5. XYZ Imports receives a shipment of 202 cartons of air filters that do not comply with E.P.A. requirements. The importer does not have a bonded warehouse but he wants to store the filters while he negotiates with other clients in Europe. You tell the importer that you can prepare a warehouse entry for storage in a bonded warehouse. What class of warehouse shall be used?






6. U.S. Customs provides preclearance offices in which of the following countries?






7. Iron ore mined in Australia, and coal mined in the United States are exported to India where they are made into sheet metal. The sheet metal is sent to Malaysia where it is made into rail car bodies with the use of tooling and engineering originating in the United States. The rail car bodies are next sent to Singapore where they are inspected, packed, and then exported to the United States. Which of the following is the country of origin of the imported goods?






8. Which of the following does NOT correctly describe the duties and responsibilities of a licensed broker?






9. Sue files a temporary importation under bond entry in January 1998. In December of 1998 she calls Customs to find out if the entry has liquidated. Which of the following is correct?






10. A person needs a broker’s license to perform which of the following activities?






11. CAPS brokerage receives payment from John, a client, after the Customs due date of March 1 (twelve days after the date of entry). CAPS brokerage holds John’s payment and transmits it to Customs 10 days later on March 22nd. Which of the following is correct?






12. A bond rider may be used to make all but which of the following changes to a continuous basic importation bond?






13. An importer is attempting to enter a shipment of Albacore tuna subject to a tariff-rate quota into the U.S. commerce. The tuna’s origin is Japan and it is packed in airtight containers, not in oil, weighing 5 kg each. Information reported by the National Marine Fisheries Service shows that imports of canned tuna have exceeded the previous year’s U.S. production by more than 20%. Which of the following statements is true?






14. When Not Legally Marked (NLM) merchandise inadvertently enters the commerce, a 10% marking duty may be assessed in the liquidation of the entry. Which of the following statements about marking duty is true?






15. Tina files a consumption entry for perishable goods that is subject to absolute quota, electing immediate delivery on Customs Form 3461. She files her entry on January 1 and her merchandise is released on January 2nd. The quota category for the merchandise Tina is importing closes on January 4th. Tina files her entry summary with payment of the applicable duties on January 10th. Which of the following actions is correct?






16. A shipment of sardines is being imported by the CMC Company for use in their stores nationwide. The sardines are caught by Norwegian factory ships and shipped to Denmark where they are frozen. They are shipped overseas to Mexico, via a Swedish shipping firm, where they are prepared by being cooked, soaked in olive oil, frozen, and packed in air tight containers. They are then shipped to New York via ocean freight. While in route the ship runs into a hurricane and is forced to dock in Bermuda. Much of the freight that they were carrying was damaged by salt water. The CMC Company contracts with a firm in Bermuda to determine if the sardines are still fit for human consumption. The firm determines that 40% of the shipment of sardines has been badly damaged. The CMC Company sells that 40% to a pet food company for use in their new dog food. The remaining sardines continue onto New York. What is the correct country of origin of the remaining 60% imported by the CMC Company?






17. Customs bills for additional duties assessed upon liquidation or reliquidation are due in how many days from the date of such liquidation or reliquidation?






18. What is the amount of the bond required for tools of trade entered temporarily under subheading 9813.00.50 HTSUS?






19. Which of the following is NOT evidence of the right to make entry?






20. A non-quota inbond shipment arrives at the port of Pittsburgh on 1/6/98. It was exported from China on 12/12/97 and moved inbond on an Immediate Transportation entry from Detroit to Pittsburgh on 12/28/97. The importer would like to take advantage of the new 1998 tariff rate of 2% rather than the 10% he has been paying. The importer’s broker informs him that he cannot use the new 1998 tariff rate of 2%. Which of the following is the correct reason why the importer cannot use the new 1998 tariff rate of 2%?






21. Sharon exports dolls made in the U.S. While the goods are in the process of being transported from the U.S. to Italy to be sold, Sharon receives a phone call from her foreign buyer in Italy. The foreign buyer tells her he is going bankrupt and not to send the dolls. Sharon promptly calls the carrier and arranges for the return of the dolls. The dolls never left the custody of the carrier and on October 12th they are returned to Sharon in the U.S. as undeliverable articles. Which of the following options is correct?






22. XYZ Plastics, Inc., agrees to purchase some plastic components from an unrelated foreign manufacturer, ABC Plastico. ABC Plastico informs XYZ Plastics, Inc. that it will need to acquire some new molds in order to fill the order. The going retail price for such molds is $17,000. XYZ Plastics, Inc. advises ABC Plastico not to purchase new molds, because XYZ Plastics, Inc. has some used ones on hand, which will be express shipped to ABC Plastico at the earliest opportunity. XYZ Plastics, Inc. will not charge ABC Plastico for the use of its molds. XYZ Plastics, Inc. acquired these molds two years ago from a related U.S. company, B&C Moldmakers, Inc., for $15,000. B&C Moldmakers, Inc.’s production records reflect a production cost of $13,500. After two years of use by XYZ Plastics, Inc., the depreciated value of the molds is $7,000. The cost of transporting the molds to ABC Plastico is $500. Upon importation the plastic components are appraised under transaction value. Which of the following is the value of the assist?






23. Which of the following is an INCORRECT statement regarding warehouse withdrawal for exportation?






24. Your brokerage firm prepares an immediate transportation entry (I.T.) with the port of delivery as New York. After receiving authorization from U.S. Customs for the New York movement, and while the merchandise was in transit, the importer tells you that he sold the merchandise to a Customer in Miami. To facilitate delivery to Miami which of the following is the correct course of action?






25. An importer imports merchandise and files a “live” entry, i.e., entry summary documentation is filed and estimated duties are deposited prior to release. The port director may waive the requirement for surety or cash deposit on the bond in which of the following circumstances?






26. Under certain circumstances, the port director may require that the entry summary documentation be filed and the estimated duties be deposited at the time of entry and before the merchandise is released. Which one of the following circumstances is NOT justification for such a requirement?






27. Jane Smith decides to request the termination of her basic importation bond. She writes a letter to the port director requesting termination but she forgets to include an effective termination date. Customs will do which of the following?






28. Which of the following types of merchandise may NOT be entered under informal entry procedures?






29. A city water company imports pumps from Japan. These pumps are used exclusively with the water meters at the main plant. The pumps incorporate an LED readout which measures the rate of water being pumped. What is the correct classification of the pumps?






30. Which one of the following types of merchandise may NOT be entered by appraisement entry?






31. Joe imports 10 dozen pairs of shoes and later exports all of the shoes to Mexico. The shoes were stored in a warehouse until exported. Which of the following is correct?






32. The Glove Company has a shipment of gloves which must be classified. The gloves are 90% rubber and 10% plastic and are sold to doctor’s offices for medical use. What is the proper classification of the gloves?






33. Which of the following quota categories applies to woven 100% silk dresses from China?






34. Which of the following types of merchandise CANNOT be placed in a warehouse?






35. Which of the following situations would prohibit the use of transaction value?






36. A piece of granite, measuring 1 meter in length, 0.5 meters in width, and 8 centimeters in thickness, has been cut and polished on the top and 3 of the sides. The granite will be used in making the foundation and steps for a new federal courthouse. What is the proper classification of the piece of granite?






37. A local hardware store is importing rolls of wire. The wire is round with a diameter of 1.4 mm, is made of zinc-plated non-alloy steel, and contains 1% carbon. What is the proper classification of this wire?






38. An importer plans to import ladies knit cardigans. The cardigans are 65% silk and 35% cotton. The construction of the cardigan consists of 8 stitches per 2 centimeters. All components of the cardigans are of Hong Kong origin. Which of the following is the correct classification of the cardigans?






39. The owner of a U.S. company imports 600 potato pies from his brother in Ireland. Customs concludes that the correct method of valuation to be used is deductive value. Upon research Customs discovers the following information: ? The merchandise was resold in the same condition as imported within 30 days following importation ? The importer paid an international shipping charge of 10 cents per potato pie ? The importer sold 400 of the potato pies for $4.00 each to an unrelated U.S. firm, the remaining 200 potato pies were sold to a second unrelated firm for $3.00 each ? The importer paid $300 in Customs duties related to the shipment of imported potato pies Based upon the information provided, what is the deductive value of the merchandise?






40. José, Vice President of an italian food corporation located in New York is importing tortellini from a company in Italy, an unrelated party. The company in Italy informs José that if he buys over 1,000 packages of the merchandise per month then $200 of the money will be returned to José at the end of each month, following the importation of the tortellini as a separate transaction. José agrees to purchase 1,000 packages per month at $1 per package. Which of the following statements is correct?






41. A German manufacturer sells a state-of-the-art piece of construction machinery to a U.S. construction firm. The contract price is $90,000 C.I.F. delivered duty paid. The total contract price includes technical assistance in the U.S. for assembling and maintaining the machinery. The contract provides a breakdown of costs. Which of the following items CANNOT be excluded from transaction value?






42. ABC Brokers has authorized its unlicensed employee Joe to sign Customs documents on the its behalf, and has executed a valid Power of Attorney for this purpose. Which of the following is correct?






43. Which of the following would be a dutiable assist?






44. An incorporated import/export company imports some merchandise and the formal entry is filed on July 1, 1998. Which of the following statements is true regarding the legal date of liquidation?






45. Mary has an entry before her with a transaction value of $10,975.62. The merchandise is dutiable at an ad valorem rate of 10%. In computing the duty, the ad valorem rate shall be applied to which of the following values?






46. John files a same condition drawback claim on June 3rd. He indicates that the merchandise will be exported on Tuesday, June 7th. Has John complied with the applicable and appropriate regulations and why?






47. On 11/24/97 Lucy imports components to a clock dutiable at 5%. Lucy places these components under non-privileged foreign status in a Foreign Trade Zone where the components are assembled into fine clocks dutiable at 10%. On 1/3/98 Lucy withdraws the clocks from the warehouse and files a consumption entry and entry summary for the merchandise. On 1/3/98 clock components were dutiable at 4% and clocks were dutiable at 8%. Which of the following is correct?






48. Cindy worked for the U.S. Customs Service for 4 years as an Account Manager assigned to XYZ Imports’ entries. During this time frame she uncovered many problem areas which she quickly brought to the attention of XYZ Imports’ management. Upon retirement, Cindy passed the brokers exam and went to work for ABC Brokerage. Her first assignment was as XYZ Imports’ broker, and involved liquidated damages penalties that Cindy had uncovered during her employment with the U.S. Customs Service. Which of the following is correct?






49. ABC, Inc. filed a supplemental petition on a liquidated damages case and was denied. In order to file a second supplemental petition, the company needs to render payment in the amount determined on the first supplemental petition within how many days from the date of notice to the petitioner?






50. Carla, an importer, has had her Immediate Delivery privileges revoked. Carla contacts Jim of Smart Brokers. Carla asks Jim to file Immediate Delivery entries on Carla’s behalf under Smart Brokers name, bond, and filer code. Which of the following is correct?






51. In 1992, The United Kingdom based company, XYZ Media, imported from Japan into the U.S. video tape recorders with world wide capabilities and paid the necessary duties, taxes, and fees. In the fall of 1997, XYZ Media decides to go global and agrees to rent the video tape recorders for $100 to their customers in the U.S. for use on their travels in the U.S. and overseas. The travelers soon discover that the video tape recorders lack the technical capabilities to integrate with European televisions. Therefore, in January of 1998, XYZ Media reimports all of these video tape recorders to its headquarters in New York. The entries made in 1998 are correctly classified under which of the following?






52. A protest has been denied in part and the importer disagrees with Customs’ decision. Which of the following options is correct?






53. A permissive seizure would be inappropriate for which of the following items, if the items are introduced or attempted to be introduced into the United States contrary to law?






54. Under 19 U.S.C. 1313(b), the provision for substitution manufacturing drawback, designated merchandise must be used in production within ________ after receipt at the factory, and the completed articles must be exported within _________ after importation of the designated merchandise.






55. Which of the following statements is INCORRECT?






56. Assuming no additional time is authorized, a person who is liable to Customs for a fine must pay the fine or petition for relief within how many days from the mailing date of the violation/penalty notice to avoid referral to the U.S. Attorney General or the U.S. Department of Justice?






57. Which of the following items, if furnished free of charge by the U.S. buyer to the foreign manufacturer, is NOT an assist?






58. Kim had her broker Joe file a protest on her behalf the day after the entry liquidated. Fourteen weeks later, Kim contacted Joe to see if she could amend her claim by submitting additional arguments. At this point Customs had not rendered a decision on the protest. Which of the following is correct?






59. Which of the following statements does NOT correctly describe the function of section and chapter notes in the HTSUS?






60. A U.S. company imports a shipment of gold wedding bands directly from Mexico. The classification is determined to be 7113.19.5000. The producer of the goods has provided information that states the gold is mined in Mexico and the rings are completely manufactured there. Which of the following is correct?






61. An importation consisting of the following is to be entered:

30,000 gift boxes, valued at $1 each, manufactured in Italy
Assume that the proper subheading for such paper gift boxes is 4819.50.40 and that the proper subheading for such glassware is 7013.21.20. Note that both tariff numbers indicate “A” in the Special Rate Column and that Poland is a GSP beneficiary country. How much duty should be paid?






62. Pitted black olives are imported in bulk in a preservative solution. After importation the olives will be cleaned and repackaged prior to retail sale. Which of the following is the correct classification?






63. An airline plans to import a composite good which it will give away to its passengers. The good is a combination hairbrush/comb. The good is made of plastic and is valued at $1.00. Neither of the components gives the article its essential character. Under which of the following HTSUS subheadings is the good properly classified?






64. A shipment of cigars arrives in Miami from Nicaragua. The shipment contains 10,000 cigars with a total value of $2000. To assure the quality of his product, the Nicaraguan manufacturer has declared to the importer that all of the materials used to make the cigars came directly from his farm in Nicaragua. He also only uses local Nicaraguan labor to hand roll these cigars. Which of the following is the correct rate of duty for the cigars?






65. An U.S. importer is importing a shipment of black pekoe tea from China. The tea is packaged in individual single serving bags that will be used by the hotel industry for placement in hotel rooms. Which of the following is the correct classification?






66. What is the time limitation for filing a protest on the denial of a 520(c)(1) petition?






67. A shipment of 250 clarinets and their cases is imported from Taiwan. Which of the following alternatives is the correct classification?






68. An “X” appearing in the column for “units of quantity” in the HTSUS means which of the following?






69. According to which General Rule of Interpretation would you classify a boxed gift set which includes a brush, comb, mirror, and lipstick case?






70. A camera shop imports from China disposable, 35 mm, color cameras with a built-in flash. The unit price is $4.00 each. What is the correct classification of the cameras?






71. A shipment of men’s leather coats has arrived from India. Each coat has a nylon lining which makes up 20% of the weight of the coat. Each coat also has fur trim at the collar and cuffs. Which of the following is the correct classification?






72. Statement processing is a voluntary automated program for participants in the Automated Broker Interface (ABI), allowing the grouping of entry/entry summaries and entry summaries on a daily basis. Entry/entry summaries must be designated for statement processing within how many working day(s) after the date of entry?






73. A well-known celebrity is importing a shipment of expensive wallets made of cowhide leather. The wallets are made in Bolivia using only Bolivian materials and labor. What is the correct rate of duty for the wallets?






74. A mattress company has imported cotton mattresses made entirely in Mexico. The invoice value is $25,000, FOB El Paso, Texas. There are no additions to be made to the invoice price, and there is no apparent reason not to use transaction value. What is the total amount of duty that will be paid on this shipment?






75. Alex is importing a shipment of attache cases from Korea. The outer surface of each case is composed of a blend of polyester and nylon. Which of the following textile categories will apply to the cases?






76. ABC Corporation plans to import patio furniture. The chairs will come from Taiwan, the table from China, and the umbrella from Thailand. The items will be packed together after they arrive in the United States, and will be sold as a patio set. Which of the following is the correct classification of the patio umbrella?






77. 2,700 cartons of porcelain were stored in a bonded warehouse. On December 15, 1997, the warehouse proprietor discovers a hole in the bonded cage fence. After conducting a three day inventory he realizes that 2,100 cartons are missing and could have been stolen. The warehouse proprietor notifies the importer and then must do which of the following?






78. An investment banker is importing a solid mahogany billiard table from Thailand for the game room in his home. The value of the table is $15,000. What rate of duty will be paid on this importation?






79. Ultra suede fabric of Italian origin and lining fabric of Chinese origin are imported into the United States. In North Carolina, T&T Suede Company cuts the ultra-suede and lining fabrics into jacket components. T&T Suede exports the components to Mexico and receives a refund on the duty it paid on the ultra-suede fabric from Italy. Zippers of U.S. origin are also exported to Mexico. In Mexico, ABC Inc. sews the ultra-suede, lining components, and zippers together to make jackets and imports them into New York. Assuming the proper documentation requirements are satisfied which of the following is the correct explanation of the duty payable?






80. Assume that chairs from India are classifiable under a GSP designated item number and that they are sold for export at a price of $10.00 each. Included in the price are the following costs: Wood, origin India $1.00 Upholstery, origin China $2.50 Hardware, origin U.S. $1.50 Labor $2.00 Depreciation on Machinery $1.00 Advertising costs $0.50 _____________________________ Total $8.50 Which of the following contributes to GSP eligibility?