Customs Broker License Exams

April 2011

1. If the merchandise has not been sold or consigned to a U.S. party at the time of entry or release, then the ultimate consignee at the time of entry or release is defined as _____ .

2. Which is the CORRECT timeframe for an abatement or refund of duties to be made in the case of injury to, or destruction of, merchandise in a bonded warehouse due to accidental fire or other casualty? The accidental fire or other casualty must occur within:

3. All of the following classes of merchandise, classifiable under the Harmonized Tariff Schedule of the United States require additional information on invoices presented at the time of entry summary, EXCEPT:

4. In general, merchandise forwarded under a Customs and Border Protection (CBP) Form 7512 may be diverted to any port other than the port named in the entry _____.

5. A shipment of fresh cheddar cheese, classified under HTS 0406.10.2400, arrives in Los Angeles on December 28, 2010. An immediate transportation entry was accepted at Los Angeles on December 29, 2010. The merchandise arrives at Dallas/Ft. Worth on December 31, 2010. The entry is filed in Dallas/Ft. Worth, without entry summary, on December 31, 2010, and no entry date is requested on the submitted entry documentation. Customs and Border Protection authorized the release of the merchandise on January 3, 2011. The entry summary is submitted in proper form, with duties attached, on January 10, 2011. What is the date of entry?

6. Which entry type code is excepted from liquidation?

7. Transit air cargo traveling to a final port of destination in the United States shall be delivered to Customs and Border Protection at its destination within ___ days from the date the receiving airline gives the receipt for the cargo at the port of arrival.

8. A broker receives a written demand from Customs and Border Protection for the production of certain entry records. The demand is not being made in connection with a determination regarding the admissibility or release of merchandise. The broker shall produce the entry records within ______ of receipt of the demand.

9. Which criteria below is NOT an eligibility requirement for remote location filing (RLF)?

10. A shipment of merchandise valued at $3,000 arrived from Toronto to port code 5210. The consignee wants to admit this merchandise into a Foreign-Trade Zone at district port code 5203. Which Customs and Border Protection (CBP) Form would be the proper document to file in order to move this merchandise?

11. A domestic express consignment courier, who is an unlicensed person and possesses no financial interest of the imported merchandise, may engage in which of the following role and/or responsibility?

12. Quick Freight Logistics, Inc. is an express consignment operator who is also a licensed person and only permitted within the Customs and Border Protection (CBP) Districts of Dallas, Houston, and El Paso. Quick Freight Logistics, Inc. intends to make entry for its customer, West Texas Drilling, of a shipment from Mexico subject to an antidumping duty order at the Port of Laredo. Using the aforementioned narrative, Which of the following is the CORRECT way to advise the broker?

13. An incorporated and physically domiciled internet company in the United States specializes in purchasing patio furniture. The company places consolidated orders with its overseas vendor to fill orders placed by the internet’s individual customers located throughout the United States. The ultimate consignee is _____.

14. A foreign business entity may NOT be the ultimate consignee _____.

15. What is the entry type code for a duty deferral entry?

16. A proprietor of a bonded warehouse may be required to furnish a new bond on Customs Form 301 on how many days notice from the port director?

17. An article composed of two different base metals is classified based on which of the following?

18. When goods are classifiable under two or more headings and cannot be classified by reference to General Rules of Interpretation (GRI) 3(a) or 3(b), they shall be classified under:

19. An ”X” appearing in the column for units of quantity in the Harmonized Tariff Schedule of the United States means which one of the following?

20. What is the textile category for 100% silk baby garments from South Korea?

21. Pursuant to the Harmonized Tariff Schedule of the United States, what information below is used to determine the classification as babies’ garments and clothing accessories?

22. What is the classification and rate of duty for frozen egg yolks from Mexico?

23. What is the classification for a woman’s orthopedic shoe with a rubber sole and an upper of textile material?

24. An entry of artificial flowers of plastic (as invoiced) manufactured and exported from China was filed. The Import Specialist issued a CBP Form 28 (Request for Information) and obtained a sample. The flowers received from the instant shipment were actually artificial, made of plastic and held with wire (finished product and not including parts). What is the correct classification of the referenced artificial flowers?

25. What is the classification of an automobile exhaust pipe?

26. What is the classification for a diffusing apparatus used for the commercial extraction of sugar juice?

27. What is the classification for coiled flat springs made from sheet metal (stainless steel) that have the property of returning to their original form even after considerable displacement?

28. What is the classification of finger jointed and edged glued pine flat jambs?

29. When goods are claimed to be free of duty under subheading 9801.00.10 or 9802.00.20, of the Harmonized Tariff Schedule of the United States, and are not being returned for repairs or rejected by the purchaser, a declaration by the foreign shipper is required when the articles are valued over _____.

30. What is the classification for a woven scarf that is 58cm by 58cm containing 78% silk and 22% polyester?

31. What is the classification for a base metal bell which is non-electric and can be attached to the handlebar of a bicycle?

32. What is the classification for a custom made window curtain constructed of 50% silk and 50% cotton knit fabric?

33. A lighted nylon safety vest is designed to fit over the upper torso. It is neither embedded nor completely covered in plastics. The safety vest fits over the upper torso and features a hook and loop strip front closure and open sides except for a 3 inch seam near the bottom. There are two 2-inch wide reflective plastic strips sewn from the front to the back of the vest and one 2-inch wide reflective strip around the waist. The reflective plastic strips on the outside contain 12 flashing lights that run by battery. It contains an inside pocket that holds a battery pack with an on/off switch, and a switch to arrange the light at either regular intervals or on a continuous basis. The lighted wearer is visible from a longer distance than someone who is wearing a ”regular” safety product without a self contained light source. What is the classification for the vest?

34. What is the classification for an alloy steel, non-welded gas line with an outside diameter of exactly 114.3mm?

35. A non-clad/plated/coated, hot-rolled coil that has a width of less than 600mm and thickness of 5mm. The element weights are 95% Iron (FE) and 5% Nickel (Ni). What is the classification for the coil?

36. A women’s footwear has a closed toe and heel type not covering the ankle. The external surface area of the upper is 98.8% composition leather and 1.2% rubber/plastic. The outer sole is composed of plastic/rubber. The value per pair is $37.00. What is the classification for the footwear?

37. A bicycle equipped with and propelled by both pedals and/or a 250-watt or 350-watt brushless, geared hub motor powered by a 36-volts battery affixed behind the seat tube. The approximate dimensions are 62 inches in length, by 10 inches in width and 44 inches in height, with a weight of approximately 60 pounds and a top motor-assisted speed of 16 mph. What is the classification number (HTS) for the bicycle?

38. What is the classification for a combination ball and needle roller bearing?

39. Pursuant to heading(s) 6103 and 6104 of the Harmonized Tariff Schedule of the United States, which of the following may NOT be classified as a suit?

40. An Automatic Data Processing (ADP) System consists of a Central Processing Unit (CPU), a keyboard (input unit), and visual display unit (output unit). What is the classification for the ADP System?

41. Articles sewn or otherwise assembled in a designated beneficiary Caribbean Basin Trade Partnership country with thread formed in the United States from fabrics wholly formed in the United States. The articles are cut in one or more such countries from yarns wholly formed in the United States, or from components knit to shape in the United States from yarns wholly formed in the United States, or both including fabrics not formed from yarns if such fabrics are classifiable under heading 5602 or 5603 of the tariff schedule and are wholly formed in the United States. What is the classification for these articles?

42. The following statements define an ”indirect material” EXCEPT:

43. When importing softwood lumber products from any country into the United States, what additional entry requirements are present?

44. A woven cotton dress is shipped from Israel directly to the United States. The cotton fabric for the dress was woven in Pakistan and comprises 64% of the value of the finished garment, a woven cotton dress. A polyester contrasting trim fabric was woven in Puerto Rico and constitutes 5% of the value of the finished garment. The dress was cut and sewn in Israel which constitutes 31% of the value. Which of the following statements is TRUE?

45. The nation of Montserrat is a qualifying member of which association of countries under the Generalized System of Preferences?

46. Which of the following items are excepted from the country of origin marking?

47. The Food and Drug Administration (FDA) has decided to examine your shipment. The FDA took a sample, analyzed the sample, and has timely issued all applicable FDA notices to the importer. Unfortunately, FDA has refused admission of your shipment into the United States. FDA communicates this fact to Customs and Border Protection (CBP). Which of the following happens next?

48. An importer shall file an application on Customs and Border Protection (CBP) Form

4315 within ____ days from the date of discovery of merchandise damaged while in CBP custody.

49. ________ must be completed by the importer and retained on file before making a customs entry for nonroad engines/equipment/vehicle.

50. Merchandise which CBP permits for transfer to U.S. Custom territory has been issued must be physically removed from the zone within ________ of issuance of that permit unless an extension is granted by the Port Director.

51. Which of the following is within the Customs territory of the United States?

52. Customs and Border Protection has issued a Notice of Detention on a shipment of potato chips suspect of being subject to Gray Market Lever-Rule protection. Goods subject to Lever-Rule protection are goods physically and materially different from the goods authorized by the U.S. trademark for importation. The potato chips have been approved entry by all applicable other government agencies. This means the goods:

53. On a formal entry, a broker may be listed as an ultimate consignee if:

54. Imported merchandise was released by CBP and placed in a bonded warehouse on January 1. The merchandise was withdrawn from the warehouse under ten separate withdrawals beginning on March 15 and ending on December 2. Which of the following is correct?

55. Intentional removal, defacement, destruction, or alteration of a marking of the country or origin may result in criminal penalties of up to:

56. The de minimis value applicable to foreign material applies to all of the following chapters of the Harmonized Tariff Schedule of the United States EXCEPT:

57. Which of the following ports of entry is not subject Harbor Maintenance Fee payment?

58. As a licensed broker, you filed entry summaries on behalf of Spyglass, Inc. for five shipments of binoculars invoiced at $50,000 per shipment. Weeks later your client discovered that a computer error had generated incorrect invoices. The correct value of each shipment was actually $150,000. Because the merchandise was duty-free, Spyglass, Inc. decided it was not necessary to notify you or Customs and Border Protection (CBP). A year later CBP discovered the discrepancies through an audit. A penalty was assessed under 19 U.S.C. 1592 for gross negligence against the five shipments. The amount of the penalty assessed would have been:

59. A client intends to submit the Importer Security Filing (ISF). Which of the following must be linked to one another at the line item level for shipments intended to be entered into the U.S. Customs territory at the lowest bill of lading level, if applicable?

60. With respect to the conversion of foreign currency, for the currency of certain foreign countries, there will be published in the Customs Bulletin, for the quarter beginning January 1, and for each quarter thereafter, the rate or rates first certified by the _____ for such foreign currency for a day in that quarter.

61. Which of the following is NOT included in the guidelines for determining amount of bond?

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

63. Upon a written request from the importer, CBP shall provide a written explanation of how the value of the imported merchandise was determined within _________ after liquidation.

64. The computed value of imported merchandise would include all of the following EXCEPT:

65. Company A imported shoes from Italy on November 12, 2009. Company A sells the shoes to Company B on November 25, 2009. Company B exports the shoes to Germany. In order for Company A to claim drawback on the imported shoes, they must obtain a _______.

66. Company A imports widgets, and then sells to Company B. Company B exports the widgets and is now filing for unused merchandise drawback. Which document is required to document the transfer, assign the right to drawback, and identify the widgets?

67. A broker files a drawback claim on behalf of its client on February 1, 1999. The exports on the claim range from April 1, 1998 to January 4, 1999. In April, 2000, the client asks the broker to amend the claim. The drawback entries covered by the claim have not yet been liquidated. May the broker file the amended claim?

68. Which of the following is NOT specifically established for recordkeeping as related to direct identification manufacturing?

69. Any record required to be made, kept, and rendered for examination and inspection by CBP shall be maintained:

70. Which of the following is required to have a license to transact customs business?

71. ”Customs business” includes all of the following activities involving transactions with CBP EXCEPT:

72. An appeal from the order of the Secretary of Homeland Security, or his designee, suspending or revoking a license or permit, or assessing a monetary penalty, may be filed by the broker in the ________________.

73. If the final determination by the Fines, Penalties, and Forfeitures Officer is that the broker or other person is liable for a monetary penalty, the broker or other person must pay the monetary penalty, or make arrangements for the payment of the monetary penalty, within ____________ calendar days of the date of the written decision.

74. When a broker is employed for the transaction of ”Customs business” by an unlicensed person who is not the actual importer, the broker must transmit to the actual importer either a copy of his bill for services rendered or a copy of the entry, unless the merchandise was purchased on a _____ basis or unless the importer has in writing waived transmittal of the copy of the entry or bill for services rendered.

75. Payments received by a broker from a client after the due date must be transmitted to the government _____ from receipt by the broker.

76. Where a broker who is licensed as a corporation and fails to have at least one officer of the corporation who holds a valid individual broker license, for any continuous period of 120 days, Customs and Border Protection will, regardless whether the broker consents, have the corporation’s broker license and permit:

77. A shipment of merchandise valued between _____ and _____, which qualifies for informal entry may be entered, using reasonable care, by the owner or purchaser of the shipment or, when appropriately designated by the owner, purchaser, or consignee of the shipment, a Customs broker.

78. What is the transaction value of commercial samples invoiced as $5,000 worth of leather wallets, ex-works (outside of factory door), with actual foreign inland freight charges of $200?

79. A U.S. resident importer purchased from an unrelated supplier widgets invoiced at $10,000 DDP (delivered duty paid) to New York. Actual air freight to New York from the supplier was $1,500. The rate of duty is 7.5 percent ad valorem. The entry is not subject to additional fees such as the harbor maintenance and the merchandise processing. Both parties agree that if the U.S. importer is able to sell the merchandise within 48 hours upon the entry that the importer will pay an additional $500 to the supplier. The merchandise is sold after 10 working days. What is the entered value?

80. Interest is assessed on the underpayment of duties and fees at a rate determined by the Secretary, from the ______________ to the liquidation or re-liquidation date.