Customs Broker License Exams

April 2012

1. The U.S. Department of Defense (DoD) hires a broker for the importation of injection mold equipment to be used in a new naval concept unmanned aerial vehicle. The DoD instructs the broker that a power of attorney is NOT required due to the nature and sensitivity of the importation and the fact that the equipment is for the account of the DoD. Based on this information, what statement is TRUE?

2. Customs and Border Protection Form ______ may be used to empower an agent other than an attorney-at-law or customs broker to file protests on behalf of an importer under section 514 of the Tariff Act of 1930, as amended.

3. A recent college graduate receives her individually licensed U.S. Customs broker’s license on December 5, 2009. On January 31, 2012, the individual is convicted of smuggling narcotics into the United States through the District of El Paso. On April 2, 2012, the broker applies for a District permit in Laredo, Texas. Which of the following statement is NOT true?

4. A domestic express consignment operator that is also a licensed customs brokerage named Quick Logistics, LLC, acted as the importer of record in order to expedite its U.S. client’s, Medical House, Inc., entry of surgical equipment. In February 2012, Quick Logistics, LLC, had a new customer: A Cut Above the Rest, Corp., also a domestic medical and surgical equipment wholesaler. Which statement is CORRECT?

5. What is the classification of a girls 100% cotton (no flax fiber) woven dress, size 24 months (84-86 centimeters)?

6. What is the classification of a windshield for a motor vehicle composed of laminated glass?

7. What is the classification of a 7 oz. can of sweet bell type peppers, packed in a liquid medium of water, salt and citric acid and imported from Spain?

8. What is the classification for boy’s football shoes that have the provision for the attachment of cleats? The shoes cover the ankle and have outer soles of plastic and uppers of leather. They are valued at $12.50 per pair.

9. What is the tariff classification for a shipment of human hair bundles imported into the port of Baltimore, which have been washed, dressed, waved, and dyed bleached-blonde, prepared for use in the making of wigs?

10. When classifying paper identified in Chapter 48 of the Harmonized Tariff Schedule of the United States what additional information is required on the invoice?

11. What is the classification for fresh grapes entered on September 15, 2011?

12. When the tariff classification of any article is controlled by its actual use in the United States Customs territory, how many years must proof of use be furnished after the date the article is entered or withdrawn from warehouse for consumption?

13. Your client is importing 6,000 glass panels and 3,000 glass shelves, cut to size and shape, and drilled to be used in making 1,000 glass display cases. (It takes 6 panels and 3 shelves to make one glass display case.) The 3,000 glass shelves are of U.S. origin. Each unit requires one panel for the top, one panel for the bottom, one panel per each side, and three shelves. The shelves each have small color-coded dots to identify each type for quick assembly. Selfadhesive brackets with additional hardware will be included. For ease of shipment, the glass panels, glass shelves, and brackets with additional hardware, are packaged in separate boxes prior to import. After arrival into the U.S., the client will assemble the glass display cases and then will sell them to designer boutiques as finished units. The Explanatory Notes of the Harmonized Tariff Schedule of the United States (in pertinent part) under Chapter 94, ’Parts’, excludes (c) sheets of glass (including mirrors), marble or other stone or any other material referred to in Chapter 68 or 69, whether or not cut to shape, unless they are combined with other parts which clearly identify them as parts of furniture (e.g., a mirror-door for a wardrobe). What is the classification for the 6,000 class panels and 3,000 glass shelves being imported?

14. The Brooklyn Alternative Music Store intends to import CD (compact disc) carrying cases. The carrying cases will hold up to five CDs. The carrying case is made with an outer surface of 100% nylon textile material. What is the classification for the carrying case?

15. PhoneMex is planning to set up a telephone repair and production facility in Mexico. PhoneMex will return all the telephones repaired or produced directly to the U.S. The returning telephones are not entitled to duty-free entry as ”originating goods” under the North American Free Trade Agreement (NAFTA). Which PhoneMex operation(s) would NOT qualify as ”repairs or alterations” entitling the returned telephones to duty-free treatment under 9802.00.50?

16. Based on the following information, which statement is TRUE?

  • Wool yarn formed in Canada
  • Elastomeric yarn formed in Korea
  • 96% wool; 4% spandex fabric woven in U.S.
  • Visible lining fabric of subheading 5512.19 woven in Korea
  • Fabric cut and sewn into women’s trousers with visible lining in Mexico
  • Trousers shipped from Mexico to the U.S.

  • 17. Fully formed, stainless steel clamp bodies are imported into Canada from Spain. The landed cost for these clamp bodies is $2 each. The Canadian importer adds a bolt and several washers to make the finished product, a constant tension clamp. The bolt, valued at $2, is manufactured in the U.S. The washers, valued at $2, are manufactured in Canada. This clamp is designed to provide constant tension, needed to counteract expansion and contraction of hose or pipe connections in a diesel engine. In condition as imported, these clamp bodies do not qualify as a part or accessory of a motor vehicle. What is the classification and duty rate for this product?

    18. What is the classification of two garments (jacket and skirt) designed and sold to be worn together as a suit? The garments are made of 100% rayon and are lined. The jacket and skirt are made of identical fabric, style, color and composition. The jacket outer shell, exclusive of sleeves, consists of six panels that are sewn together lengthwise.

    19. What is the classification of disposable plastic sleeve protectors constructed of 100% polyvinyl chloride plastic from China?

    20. Your client is importing a remote control device designed to control a television and operate a variety of traditional home entertainment equipment. Each unit is handheld, wireless, programmable and operates solely by infrared technology. What is the classification for the remote control device being imported?

    21. Your client is importing ceramic funnels that are designed for use in a machine classified under 8479.20.0000 in the HTSUS. The ceramic of which the funnels are made is not porcelain or china, meets the terms of Chapter 69, Additional U.S. Note 1, as a refractory ceramic, and has a hardness equivalent to 9.5 on the Mohs scale. The funnels will be operating at a maximum temperature of 460 degrees Celsius. What is the classification for the funnels?

    22. What is the classification for a porcelain ceramic tile, glazed and decorated with an elaborate floral design, measuring 25 cm long by 25 cm wide by 1.5 cm high, and designed for tiling a wall?

    23. What is the classification for a collapsible guitar stand, suitable for use with both acoustic and electric guitars?

    24. Your client is importing ”WillGro” a product described as a natural fertilizer that is manufactured from mustard seed meal. This fertilizer is suitable for fruits, vegetables, and turf. ”WillGro” is a dry granule product imported from Costa Rica in 5 kg packages. What is the tariff classification for this product?

    25. Italia Leather Company is importing backpacks into the United States for the first time. The backpacks are constructed with a cotton textile base. On the outside of the base there is a layer of polyvinyl chloride (PVC) plastic sheeting. The PVC is embossed to simulate leather. What is the classification of the backpacks?

    26. A shipment of wooden armoires/entertainment centers was imported and an entry was presented for Import Specialist review and liquidation. Upon receipt of a Request for Information (CBP Form 28), the importer, through the broker, provided illustrative literature indicating that the armoires/entertainment centers are being marketed with a bed as observed from a picture in the catalog. What is the classification of the armoires/entertainment centers?

    27. What is the classification of an adjustable, portable, multi-purpose, aluminum stand designed to fit on a desk or table? The primary function is laptop computer usage.

    28. Transfers of merchandise to the Customs territory for transportation to and exportation from a different port of importation will be made using which Customs and Border Protection Form?

    29. Which of the following satisfies compliance of Customs and Border Protection Form 4647 for FDA refusal?

    30. When a commercial sales transaction is quoted in a foreign currency, the date used for conversion purposes is:

    31. Your client intends to submit an Importer Security Filing (ISF). You advise them that the ___________, ____________, and ___________ must be linked to one another at the line item level for shipments intended to be entered into the U.S. Customs territory.

    32. Which of the following is NOT an invoice requirement?

    33. The International Standard Organizational country code identified at Block 10 of CBP Form 7501 is:

    34. The ”Total Entered Value” at Block 35 is:

    35. The shipment is subject to Fee Class Code(s):

    36. Broker A has permits in the Districts of Los Angeles, New York, and Dallas. Broker A services a Chinese widget manufacturer that ships merchandise subject to antidumping duties to its affiliated U.S. incorporated selling agent that is located at the Port of Long Beach, California. The selling agent has no financial interest in the commercial transaction. At the nominal consignee’s request, the shipment of widgets is diverted to San Diego for entry. Broker A is in possession of a valid power of attorney (POA) from the Grantor, authorizing other Customs brokers to make entry. Broker A creates a sub agency POA to Broker B who is only permitted in the District of New York. Who would be the importer of record?

    37. Merchandise subject to a countervailing duty order for which entry is required must be entered within:

    38. A broker may be listed as an ultimate consignee on a formal entry if:

    39. Which of the following is required for the importation of raw cane sugar from the Dominican Republic?

    40. Fish are caught by a Norwegian flagged vessel in international waters off the coast of Portugal. The fish are kept either whole or filleted on board. The fillets are sent to England, where they are seasoned, battered, and pre-fried. What is the country of origin of the battered fillets?

    41. Using the information below, construct the manufacturer identification number.

  • Sanford and Sons Junkyard
  • 114 Fender Avenue
  • Unit 1490
  • Cashew City, Bermuda

  • 42. The underscoring of a NAFTA trade classification rule subdivision designation in General Note (GN) 12(t) indicates which of the following:

    43. Metal eyeglass frames are manufactured in Korea. The manufacturing process includes production of all metal parts, welding the parts together and polishing the eyeglass frames. The products from Korea are assembled and shaped metal eyeglass frames, including the temple tips and nose pads. All items are then shipped to Germany where the frames are plated, the country of origin is printed on the temple, the temple tips and nose pads are assembled onto the frame and the frame (without lenses) is packaged and prepared to be shipped to the United States. What is the country of origin and appropriate marking of metal eyeglass frames manufactured in Korea?

    44. Which of the following is NOT an additional commercial invoice requirement?

    45. The importation of goods into the U.S. Virgin Islands is governed by the:

    46. What is the timeframe for merchandise permitted for removal from a foreign trade zone for importation?

    47. For a shipment departing the United States which is not subject to an export license certain cargo information must be electronically forwarded to CBP via the Automated Export System. Which statement is FALSE regarding the transmission and acceptance of such data?

    48. Which ISO Country Code is incorrect?

    49. Based on the following information, which statement is TRUE?

  • Cotton fabric woven in the U.S. of U.S. yarn
  • Fabric cut and assembled into trousers in South Africa
  • Waistband formed in Korea
  • Sewing thread from Korea
  • Trousers washed, packed and shipped from Kenya to US

  • 50. Based on the following information, which statement is TRUE?

  • Cotton fabric knit in U.S. of U.S. yarn
  • Fabric cut in Guatemala
  • Components sewn into a dress in Jamaica using U.S. sewing thread
  • Dress embroidered in Guatemala using Guatemalan embroidery thread that comprises 26% of the value of the garment
  • Dress shipped from Guatemala to the U.S.

  • 51. Who is charged with the responsibility of presenting a true manifest of an exportation of a self-propelled vehicle?

    52. What additional information is required when importing iron or steel classifiable under Chapter 72 or headings 7301 to 7307 HTSUS?

    53. A granite slab is imported into Canada from Italy. In Canada, the slab is further cut and polished to produce a granite countertop. The processing in Canada contributed over 60 percent of the transaction value of the finished product. Does the finished countertop qualify for preferential tariff treatment under the NAFTA?

    54. Whose bond is liable when merchandise is delivered directly to a container station from an importing carrier?

    55. When the quantity of tariff-rate quota merchandise exceeds the quota quantity, which of the following is the correct action to take?

    56. Which of the following is the extension period for Admission Temporaire/Temporary Admission (ATA )Carnet’s from the date of issue?

    57. Textile and apparel goods, that consist of ”originating and non-originating goods”, classifiable as ”goods put in sets”, and sold at retail as a set, will be regarded as ”originating goods” if the following applies:

    58. The importer of a shipment of chemical articles subject to the Toxic Substances Control Act, who has been notified of detention, will comply with which of the following:

    59. The withdrawal of general order merchandise can occur under which of the following conditions?

    60. Which of the following articles are unconditionally free of duty for institutions?

    61. Which one of the following procedures constitutes an ”assembly” operation for purposes of classification under 9802.00.80, the provision for foreign articles assembled with U.S. components?

    62. In the absence of a request for accelerated disposition, which one of the following issues requires the Port Director to act on a protest within 30 days from the date the protest was filed?

    63. Distilled spirits warehoused under section 5214(a)(9), Internal Revenue Code, may be withdrawn only for the purpose of___________, either directly or after re-warehousing at the same or another port.

    64. What is the classification of the imported merchandise?

    65. The port code to be identified on Block 20 of CBP Form 7501 is:

    66. The party responsible for the payment of duties, taxes and fees is:

    67. The amount of the harbor maintenance and merchandise processing fees is:

    68. The amount of the duty due to U.S. Customs and Border Protection is:

    69. The antidumping duty amount is:

    70. According to the degrees of culpability under Section 592, a violation is considered to be grossly negligent when:

    71. In order to expedite a shipment, in lieu of the owner of the merchandise, a Broker decides to identify himself as the Importer of Record and submits a consumption entry to CBP. CBP requests documents supporting the NAFTA preferential duty claim and the Broker is unable to comply with the request. Which of the following statements is CORRECT?

    72. 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?

    73. A liquidated damage claim may be cancelled by U.S. Customs and Border Protection if:

    74. Which of the following is NOT considered to be voluntarily abandoned merchandise?

    75. Which of the following is true regarding Customs brokers?

    76. ABC ships line telephone sets with cordless handsets to Mexico, which are classifiable under HTS 8517.11.0000, for repairs and alterations. Upon re-importation the owner/importer claims 9802.00.5060. They declare that the cost for the repair/alteration was $10,000 and the line telephone is valued on $3,000. There are no other goods in this shipment. What is the correct duty and Merchandise Processing Fee (MPF) to be assessed on this importation?

    77. The price actually paid or payable price may be the result of additions, deletions or negotiations. Which of the following is NOT allowed?

    78. An importer furnished $1,000 of materials and a machine which originally was purchased for $10,000 to an overseas unaffiliated producer free of charge. The importer noted that the machinery was fully depreciated, pursuant to generally accepted accounting principles and the importer paid freight charges of $50 and foreign duties of $5. The importer furnished inspection equipment to the producer to test the quality of the goods after production in the amount of $1. For accounting purposes, the machinery was depreciated over five years. The value of the assist is:

    79. If furnished free of charge by the buyer to the seller, which of the following items would NOT be considered an assist?

    80. AVC imports plastic widgets from an unrelated foreign London manufacturer. This manufacturer sells the widgets at a price of $10,000. The terms of the sale are Free On Board (FOB), Mobile. In addition AVC provides the manufacturer an assist valued at $1,000. The assist is depreciated over a five year period. The assist will be used for goods shipped to United States Virgin Islands. You discovered the importer paid a buying commission in the amount of $10. The buying commission was invoiced separately and AVC paid the unrelated foreign manufacturer thirty days after receiving the goods. The invoice contains the following information: $10 for special (after being seaworthy condition) export packing $5 for sales commission $15 for insurance $20 Freight (London to Mobile) What is the correct transaction value of the plastic widgets?