Customs Broker License Exams

April 2013

1. What is the classification of sweetened banana chips composed of approximately 65% bananas, 25% coconut oil and 10% sugar? The sweetened banana chips are produced by slicing bananas, frying them in coconut oil, sweetening them with sugar, and drying them.

2. Certain women’s bowling shoes, while imported as a pair, have separate identities. Both shoes have uppers of 100 percent rubber/plastics. The left shoe has an outer sole of rubber/plastics. The right shoe has an outer sole consisting of rubber/plastics and a large textile sliding pad. The textile pad comprises the majority of the surface area facing the ground. The shoes are below-the-ankle, do not have a foxing or foxing-like band, are not protective, and are secured to the foot with laces. What is the classification of this pair of bowling shoes?

3. What is the classification for a basket made of interwoven strips of non-coniferous wood (chipwood)?

4. What is the classification for an engineered flooring panel (7 layers, plywood construction) with an unfinished oak face ply, measuring 5mm in thickness, a poplar back ply measuring 1mm in thickness, and all other plies measuring 2mm in thickness? (The panel is tongued and grooved on edges and ends.)

5. What is the classification of an unfinished, solid maple (a non-coniferous wood) flooring plank that is tongued and grooved on its edges and ends?

6. What is the classification of the following items: two steel steak knives with plastic handles, two steel forks with plastic handles and two steel tablespoons with plastic handles? The items are imported packaged for retail sale.

7. What is the classification of an over-the counter acne treatment cream containing salicylic acid (1% by weight) as the active ingredient mixed with other inactive ingredients? The product is put up in a 1 ounce plastic tube for retail sale and it is indicated for the prevention and treatment of acne pimples.

8. What is the classification for retail packages of ”Smokers Finest Alternative” TiramisuFlavored Cigarettes consisting of dried, shredded lettuce (mixed with artificial coffee-andchocolate flavoring) encased in paper tubes incorporating filter tips? The import value per pack of 20 cigarettes is $5.00.

9. What is the classification of a men’s pocket T-shirt? The garment is all white and is cut and sewn from 100% cotton, light weight jersey knit fabric. The garment has a rib knit crew neckline, short hemmed sleeves, a small patch pocket on the left chest, and a hemmed bottom.

10. What is the classification of a men’s pullover garment? The garment is knit to shape from 40% cashmere, 24% wool, 20% acrylic, and 16% nylon jersey knit fabric, which measures 14 stitches per 2 centimeters in the direction in which the stitches were formed. The garment has a rib knit round neckline, long sleeves, and a rib knit bottom.

11. What is the classification of a textile net specifically designed and cut to fit the exact dimensions of a regulation soccer goal?

12. What is the classification of an apparel set consisting of a cotton knit pullover and cotton denim pants for babies having a body height of 80 centimeters?

13. What is the classification of apple juice at single strength (13 Brix) fortified with Vitamin C, and Vitamin D?

14. What is classification for an anthraquinone dispersion? The anthraquinone dispersion is composed of the following ingredients: sodium napthalene sulphonate) 2%, (xanthan gum) .08%, anthraquinone 50%, and water 47.92%. The product is formulated for a specific use in the pulp and paper industry as a coating and stiffening agent. Anthraquinone is an aromatic substance. Sodium napthalene sulphonate is a dispersing agent and xanthan gum is a thickening agent.

15. Chuck Funk, LLC, imports Goblin Green Statement Earcandy, a new addition to their current Funky Earcandy line of earrings. Each earring set imported consists of a pair of earrings, which are together valued at $30. Each earring is comprised of one round bevel that holds ten grouped 1 millimeter faceted round glass stones. At the center of this bevel is one 5 by 5 millimeter tiger's eye stone. Attached directly below this bevel is one dangling 30 by 30 millimeter indicolite colored plastic emerald. Note that Chuck Funk, LLC, imports all of its items exclusively from China, and there are no concerns other than that of item classification. What is the most appropriate duty rate?

16. Your client is importing a 55-inch color television with LED (light-emitting diode) backlighting from China. The television contains a liquid crystal display (LCD) screen, but does not incorporate any video recording or reproducing apparatus. What is the classification of this LED-backlit LCD television?

17. What is the classification of a wafer slicing saw, i.e., a machine tool that slices wafers from a boule of monocrystalline silicon semiconductor material? Documentation has been supplied establishing that this particular model is of a kind used solely or principally for the manufacture of semiconductor wafers.

18. In their imported condition, eight wine glasses from China are packed together in a retail box. The box of eight glasses is being sold by the foreign shipper to the American importer for the price of $4.80 FOB. The value of each wine glass within the box is sixty cents. The glasses are not cut or engraved. The products are not lead crystal glassware and do not consist of pressed and toughened (specially tempered) glass. Each glass is colored prior to solidification and characterized by random distribution of numerous bubbles throughout the mass of the glass. What is the classification for this merchandise?

19. What is the classification for a cold-rolled non-alloy steel flat-rolled product in coils, with a width of 700 mm, electrolytically plated with zinc, and with a thickness of 4 mm and a minimum yield point of 355 MPa?

20. What is the classification for 10 paper labels for apple juice that is printed by a lithographic process?

21. What is the classification for a fish product described as cooked ”Australian Herring” (species Arripis georgianus) fillets packed in water and spices in airtight cans?

22. What is the classification for live pigeons imported into the United States for processing and subsequent sale in the fresh or frozen poultry sections of supermarkets and butcher shops?

23. Your client is importing ceramic honeycomb substrates. After importation, the bare ceramic substrates will be coated with a catalyst and incorporated into a catalytic converter for the exhaust system of an automobile. The data sheet for the ceramic substrates indicates that they are made of a ceramic which is not porcelain or china, and have a Mohs hardness equivalent of 10.2. What is the classification for the ceramic substrates?

24. Which article constitutes a composite machine?

25. Johanna Billings travelled in Europe and purchased some individual natural pearls. The pearls were appraised as being over 100 years old with an AAA grading. However, for the convenience of transport, Johanna had the natural pearls temporarily strung prior to returning to the United States. What is the classification for the string of natural pearls?

26. What is the classification of a titanium hex head cap screw? The screw is used to attach a jet engine to an airplane. It is a non-standard size (11.2 mm diameter), which is only used in the aircraft industry.

27. European grown and processed tobacco enters the U.S. under subheading 2401.30.03and is manufactured into goods of subheading 2403.91.20 and shipped to Mexico. The goods are further processed in Mexico and finally returned to the United States under subheading 2403.91.20. Do the goods imported into the United States from Mexico qualify to receive preferential tariff treatment under NAFTA?

28. A plastics milling plant located in New York City imports French polypropylene pellets (classified in 3902.10.0000) for grinding into polypropylene powder (classified in 3902.10.0000). The powder is made solely from the foreign material. The company claims the good have been substantially transformed making the country of origin the United States. Which of the following statements is correct?

29. U.S. yarn is woven into cotton fabric and exported to South Africa where it is cut and assembled into trousers. The thread used for sewing is from Korea and the waistbands are formed in Korea. The trousers are washed, packed and shipped from Kenya to the United States. Which of the following statements is true based on the requirements for the African Growth Opportunity Act (AGOA)?

30. Fabric is cut and sewn into lined women’s trousers in Mexico. The wool yarn was formed in Canada, elastomeric yarn is formed in Korea. The composition of the fabric is 96% wool and 4% spandex fabric that was woven in the U.S. The visible lining fabric was woven in Korea and classified under subheading 5512.19. The trousers are imported to the U.S. from Mexico. Which of the following statements is true based on the requirements of the North American Free Trade Agreement (NAFTA)?

31. Cotton fabric is knitted in the U.S. from U.S. yarn and is sent to Guatemala where it is cut. The cut components are sewn into a dress in Jamaica using U.S. sewing thread. The dresses are returned to Guatemala where they are embroidered using Guatemalan embroidery thread that comprises 26% of the value of the garment. The dresses are imported into the U.S. from Guatemala. Would this dress qualify for Caribbean Basin Trade and Partnership (CBTPA)?

32. When merchandise is imported into the U.S. Virgin Islands, which laws govern the importation?

33. Fish are caught by a Norwegian flagged vessel in international waters on the coast of Portugal where 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?

34. Whenever articles subject to different rates of duty are packed together tightly or commingled in such a way that CBP officers cannot readily determine the quantity, value or classification of the merchandise without physically separating the shipment or the contents of any package, the combined merchandise will be subject to the highest rate of duty or duty rates applicable to any kind merchandise that is included in the commingling with exception. Which of the following statements is not a condition to obtain a reduction in the higher rate of duty? .

35. Which of the following identification numbers can not be used on the current CBP Form 5106 (Importer Identification Input Record)?

36. The port director may waive the requirement for an importer to produce an invoice. The waiver may occur for one of two reasons. One reason would be when the port director is satisfied that the importer cannot, by reason of conditions beyond his control, furnish a complete and accurate invoice. Please select the other reason from the choices below.

37. Generally, anti-dumping or countervailing duties are imposed on entries of merchandise made on or after the date on which the Secretary first imposes provisional measures. However, duties may be imposed retroactively on merchandise entered up to 90 days before the imposition of provisional measures. Which of the following term best describes this situation?

38. Which group of HTSUS Headings is prohibited or conditioned as described in the Tom Lantos Block Burmese JADE (Junta’s Anti-Democratic Efforts) Act of 2008 (Public Law 110- 286).?

39. Use the following information below to construct the manufacturer’s identification number.

40. The Embassy of Nunavit Five Thousand Chateau Place Suite 501 Nunavit, Canada

41. Which of the following statements is not a requirement that must be met in order to obtain the benefits of prior disclosure?

42. You have before you a Cost Insurance and Freight (C.I.F.) shipment which has an invoice value of $5,000, and a weight of 12,000 kilograms. The duty rate is 10% plus 2 cents per kilogram. Included in the invoice price are: brokerage fees of $50, ocean freight costs of $600, and duty. (Minimum merchandise processing fee of $25 applies, and there are no other applicable fees.) The merchandise was imported January 31, 2012. However, the buyer and seller agreed to a price reduction of $500 on February 4, 2012 (before the entry summary) to reflect a new customer discount. What should the entered value of the shipment be?

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

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

45. The U.S. Department of Defense (DoD) hires a broker for the importation of injection mold equipment to be used in an 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 DoD. Based on this information, which of the following statement is true?

46. Bowles Japan is importing certain stainless steel pipes and tubes of heat-resisting steel under 7304.59.2030 . This merchandise is subject to antidumping duties. Ryan’s Limited Brokerage services Bowles Japan and has permits in the Districts of Anchorage and Philadelphia. The merchandise is being shipped to Junior Queen, its selling agent (located in Baltimore, Maryland) who has no financial interest in this transaction. At the nominal consignee’s request, the shipment is diverted to New York for entry. Ryan’s Limited Brokerage is in possession of a valid power of attorney (POA) from the Grantor, authorizing other Customs brokers to make entry. Ryan’s Limited Brokerage creates a sub agency POA with Jackson Brokerage who is only permitted in the District of New York. Who should file the entry?

47. If not associated with an outstanding transaction, what is the timeframe that an Importer Identification Number shall remain on file from the date on which it was last used on Customs Form 7501 (Entry Summary) or a request for services?

48. A shipment of pesticides or devices shall be detained at the importer's expense pending an examination by the Environmental Protection Agency (EPA) Administrator to determine if the shipment complies with the requirements of the Federal Insecticide, Fungicide, and Rodenticide Act. However, a shipment detained for examination may be released to the consignee prior to a determination by the EPA Administrator provided a bond is furnished for the return of the merchandise to Customs custody. Who would determine the bond amount?

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

50. Michael & Sons Brokerage has permits in the Districts of Atlanta, New Orleans, and Los Angeles. Michael & Sons Brokerage service a German bearing 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 bearings is diverted to Norfolk, Virginia for entry. Michael & Sons Brokerage is in possession of a valid power of attorney (POA) from the Grantor, authorizing other Customs brokers to make entry. Michael & Sons Brokerage creates a sub agency POA with Bill Johnson Brokerage who is only permitted in the District of New Orleans. Who should file the entry?

51. How many days following the date of release from CBP custody are textile and textile products deemed conditional?

52. What is the appropriate entry type for the relocation of unreleased merchandise from the Port of Seattle to the Port of Pembina?

53. When importing commodities that are regulated under the Toxic Substances Control Act, a certifying statement must be presented prior to release; unless the importer has a blanket certification on file with CBP. Which citation outlines the reporting requirements for a blanket certification?

54. Entries subject to payment of AD/CVD and various fees must indicate the applicable fees and collection codes on the CBP Form 7501. What are the collection codes for the following fees: Pecan, Potato, Blueberry, and Avocado?

55. When the bond (that is used in conjunction with the entry of merchandise) is found by the U.S. International Trade Commission to involve unfair practices or methods of competition, the bond limit shall be fixed in what amount?

56. Jack Sprat Imports, a nominal consignee, desires to generate an entry for a shipment. Which of the following is the appropriate entry processing procedure?

57. For merchandise that is released but not sold or consigned, who is the ultimate consignee?

58. What is the bond limit for imported flammable fabrics?

59. Which of the following surety code is utilized in the preparation of an entry when government securities are used?

60. An in-bond transaction consists of three mandatory QX records. The in-bond records that make up the transaction must be transmitted to CBP in ascending order with certain segments repeated as often as necessary. Which of the following conditions must be met before an inbond will be accepted?

61. A Courtesy Notice is issued when what occurs?

62. Under what authority will CBP seize a shipment of imported merchandise bearing a counterfeit trademark?

63. Before recording with CBP, the applicant must first have the mark registered with which office?

64. Ms. Bardin, of Gatwick, England is visiting her aunt and imported her motorcycle for transportation while in the U.S. The classification for her motorcycle is?

65. Ms. Bardin, of Gatwick, England also designs women’s motorcycle helmets and is importing 13 models of her designs to generate interest for her website. What is the correct classification for her helmets?

66. A broker’s license is required for which of the following transactions?

67. The request to extend the time for liquidation will be honored when the appeal comes from?

68. What is the maximum amount of extension time that can be granted for liquidation?

69. If a permitted broker fails to have an individual employed within that district or region for seven months what happens to that permit?

70. When a licensed broker files the status report and related fee for their corporate license, but fails to file and pay for their individual license, what happens to the individual license?

71. A broker may compensate a freight forwarder for referring brokerage business in which of the following scenarios:

72. Can a broker import the same merchandise as their customer ?

73. A broker must remit to CBP past due duties, taxes, and fees received from a customer within how many business days?

74. After filing a claim for preferential treatment of goods under the NAFTA upon importation through a formal declaration, a U.S. importer has how many days to revise the declaration if based on erroneous information?

75. CBP assessed a monetary penalty against Peter, licensed Customs broker, for failing to conduct responsible supervision and control over the business which he conducted. After CBP issued a penalty notice against Peter, Peter filed a petition for relief. CBP mitigated the penalty and Peter paid the mitigated amount. What action can Peter initiate immediately after the fact?

76. If a broker knows that a client has not complied with the law or has made an error in, or omission from, any document, affidavit, or other paper which that law requires the client to execute, what must the broker do?

77. Phil Isler, an employee of BP Brokerage, was recently convicted of a felony and spent a year in jail, paid a monetary fine and is now on 3-year probation. Upon his release, he contacted the broker and was re-hired because of his extensive knowledge and skill with the preparation of entry documents and family ties with the owner and license qualifier of BP Brokerage. Since his re-hire, BP Brokerage business has increased significantly. Mr. Isler’s rehire occurred subsequent to the 2012 triennial reporting period. From the list below, what is the first course of action the broker should take?

78. A broker does not have any settlement options for disciplinary proceedings which have been instituted against it.

79. Which of the following is true?

80. Miguel Servet took the Customs broker license exam in April 2010, at the port of Miami, and subsequently obtained his license through the port of Chicago in October 2011. One month later, Miguel was hired by Zwingli Customs Brokers (Zwingli), a national company employing 79 brokers. Zwingli possesses a corporate broker license. On August 12, 2012, while perusing old Federal Register notices, Miguel realizes that Zwingli did not file Miguel’s triennially-due status report nor pay the associated fee (triennial). Miguel is determined to continue his career as a licensed broker. Considering such, which of the below is the most appropriate course of action that Miguel should take?