Customs Broker License Exams

April 2014

1.A Customs Power of Attorney may be issued by a partnership for a period not to exceed ___________ years.

2.Don Murphy is the Import Manager of ABC Imports. He hires XYZ Brokers to clear shipments for ABC Imports. ABC Imports is a limited partnership under state law. Which of the following is required as part of, or must accompany, the power of attorney from ABC Imports?

3. If Dallas, TX is the port of entry, what is the port code?

4.Block 31 of the CBP Form 7501 should indicate______for the pickles.

5.The Manufacturer’s Identification Code is:

6.Using the following abbreviated CBP Form 7501 ”Entry Summary,” answer questions 6 through 8. Which date is used for calculating the applicable rate of duty?

7.Which of the following is the port of processing?

8.What is the entry type?

9. If the country of export of this shipment was Ghana, then the International Standard Organizational country code identified at Block 14 of CBP Form 7501 would be:

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

11.What free trade agreement is claimed on this entry summary?

12.Please construct the Manufacturer Identification Code (MID) for the following company:

13.Quota Class Merchandise is any imported merchandise subject to limitations under an absolute or tariff rate quota. Entry summaries for consumption or withdrawal for consumption shall be presented during official office hours. Official office hours for purposes of administering quotas shall be:

14.How much Antidumping Duties/Countervailing duties (AD/CVD) are entitled to drawback, for entries made after August 23, 1988?

15.Turtle Clothing Line is a new company getting started in China. They would like to solicit orders in the United States. They are planning to import samples. The merchandise will be filed under classification 9811.00.60. Which of the following does not qualify for 9811.00.60?

16.When admission into the United States for a shipment is prohibited, the importer has the option to file for a direct exportation (without transportation to another port) instead of an entry for consumption. Which of the following documents must be provided?

17.Which of the following dates would be the date of the liquidation of an entry?

18.If accelerated disposition is requested on a protest and it is not allowed or denied within 30 days from request for accelerated disposition what would the status of the protest be?

19.Which of the following is not required to complete the paper CBP Form 7501?

20.Any parties participating in an import transaction with a financial interest in the transaction may make entry on his own behalf, or may designate a licensed customs broker to make entry on his behalf, and may be shown as the importer of record on the CBP Form 7501, except:

21.Antidumping/countervailing merchandise is placed in a bonded warehouse facility and re-warehoused at a second warehouse. What is the appropriate entry type to be included on the U.S. CBP Form 7501?

22.What entry type is used to file for non-quota merchandise to be withdrawn for consumption from a bonded warehouse?

23.What form is required for a temporary deposit of merchandise in a Foreign Trade Zone, provided that it is signed, numbered, and marked as ”Temporary Deposit in a Zone”?

24.How long must a proprietor of a bonded warehouse retain all records pertaining to bonded merchandise after the date of the final withdrawal under the entry?

25.Except in the case of theft or suspected theft, the Foreign Trade Zone (FTZ) operator need not file a report with the port director, or note in the annual reconciliation report, any____________.

26.For a Foreign Trade Zone, the operator shall prepare a reconciliation report within ________ days after the end of the zone/subzone year unless the port director authorizes an extension for reasonable cause.

27.Modifications to a bond made prior to its signing by the parties to the bond require:

28.An importer wants to clear its instruments of international traffic. However, it does not have a bond on file with CBP and only needs the customs bond for this one time shipment. To import the instruments of international traffic, it would need a ________________.

29.Where a bond or other security is not specifically required by law, CBP possesses the regulatory authority to require security or execution of a bond pursuant to which regulation?

30.Which of the following obligations will CBP not accept in lieu of sureties on a bond required or authorized by any law, regulation, or instruction?

31.Merchandise subject to the Federal Food, Drug and Cosmetic Act requires a single entry bond. The amount of the entry bond is equal to the domestic value of the merchandise at the time of release as if the merchandise were admissible and otherwise in compliance; or:

32.What is the classification of a men’s woven solid color dress shirt composed of 45 percent cotton, 40 percent polyester and 15 percent spandex?

33.What is the correct tariff classification of a perfume containing alcohol?

34.What is the proper classification of high fashion snakeskin men’s anoraks from Canada?

35.What is the correct classification of raw cane sugar from Columbia with an entered polarization of 94.5 degrees? The raw cane sugar is described in Additional U.S. Note 5 to Chapter 17 and is entered pursuant to its provisions.

36.A fabricated one-piece stainless steel sink unit is composed of a molded stainless steel sink welded to stainless steel countertops fabricated of steel sheet. The stainless steel sink provides the principal function to this article. What is the classification of the fabricated one-piece stainless steel sink?

37.What is the classification of plastic swimming goggles with rubber stamps?

38.Frozen veal bones with adhering meat are being imported. The bones are from the neck, vertebrae, atich, blade, brisket, knuckle, tip and rib. The meat has been removed from the bones by hand. They are not further processed. After importation, they will be cooked in water to make veal broth and then discarded. What is the classification for the frozen veal bones?

39.A woven silk tie is composed of 80 percent silk and 20 percent polyester outer shell and 100 percent polyester lining. The tie, inclusive of the linings and interlining, is greater than 50 percent by weight of polyester. What is the classification of the silk tie?

40.What is the classification of a men’s knit two button polo shirt composed of 100% cotton with 8 stitches per linear centimeter in each direction?

41.Artic shops Inc. intends to import a woman’s knit cardigan with decorative beads and embroidery into the United States from Hong Kong. The cardigan consists of 73% polyester, 25% rayon, and 2% of spandex. The outer surface of the garment measures more than 9 stitches per 2 centimeters in the direction in which stitches were formed. The garment also features a rounded front neckline, straight hemmed bottom, and extends below waist. What is the classification of this garment?

42.What is the classification of the Italian glazed ceramic tiles each covering 2855 tiles per square meter?

43.Your client is importing ”Super flowGro,” a product described as a natural fertilizer manufactured in the Dominican Republic, exclusively from plant matter. This fertilizer is intended to be used to grow flowers. ”Super flowGro” is imported in tablet form, in twelve kilogram, retail-ready packages. What is the tariff classification for this product?

44.What is the classification of a handbag with an outer surface of 1 cm-wide, interwoven palm leaf strips?

45.A men’s lightweight upper body garment is cut and sewn from 45% cotton, 35% polyester, 20% linen, pique knitted fabric. The fabric measures 12 stitches per linear centimeter counted in the horizontal direction and 14 stitches per linear centimeter counted in the vertical direction. The garment is designed for wear over the skin or underwear and has a rib knit spread collar. It has a partial front opening at the neck with a three button placket, short sleeves with a rib knit cuffs, and a ribbed knit waistband. What is the classification of this garment?

46.Which of the following is not an assist, and should not be included in entered value?

47.The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States. The Transaction Value can include which of the following additions?

48.After liquidation, the importer has ____ days to request a written explanation of how the value of the imported merchandise was determined.

49.According to 19 CFR 141.89, ”additional information for certain classes of merchandise,” what is the requirement for classifiable items of iron and steel classifiable in Chapter 72 or headings 7301 to 7307?

50.When considering test values in a related party transaction, which of the following choices does the appraising officer have?

51.An importer is entering $50,000 worth of gold jewelry which had previously been imported from Thailand and then exported for repairs under warranty. The broker classifies the repaired jewelry in subheading 9802.00.4040 of the HTSUS with a secondary classification of subheading 7113.19.5000 of the HTSUS. Which one of the following statements is true regarding the duty due?

52.Which of the following is the transaction value of a shipment of lithium-ion batteries with the following details?

53.A U.S. importer contracts the services of a foreign company that works with aluminum to manufacture 300 aluminum windows at $40,00 per window. The manufacturer contacts the U.S. importer and asks him for some special tools to cut the aluminum profiles. The importer agrees to send $500.00 worth of tools to the manufacturer through and air carrier. The carrier charges the U.S. importer $300.00. The importer tells the manufacturer to repay him the $300.00 dollars of the carrier. A month later the U.S. importer receives the 300, cut and assembled, windows accompanied by an invoice for $12000,00 dollars. What is the transaction value?

54.A shipment of 860 dozen scissors, manufactured in China, is invoiced at $74.77 per dozen CIF San Juan. The invoice shows an estimate of marine insurance at $0.03 per unit and an estimate of ocean freight at $6,200. The bill of lading shows the actual ocean freight to be $4,750. The insurance bill provided shows a rate of $0.005 per unit. What is the transaction value for the shipment?

55.Which country below is designated as a beneficiary country for purposes of the Andean Trade Preference Act (ATPA)?

56.Which of the following countries is considered a ”Least Developed Beneficiary Country” for purposes of the General System of Preferences?

57.Canadian Hockey Equipment issues a NAFTA Certificate of Origin for its shipment of hockey sticks to its U.S. customer, Hockey Sticks, Inc. Canadian Hockey Equipment discovers that the sticks do not qualify for NAFTA and provides a written statement to Hockey Sticks, Inc. advising them of the mistake. In order to rectify the situation with CBP, Hockey Sticks, Inc. must do which of the following:

58.Korean Boat Restorations LLP is investigating the viability of restoring used inboard motorboats (8903.92.00) of unknown origin in S. Korea for export to the U.S. The restoration will include the disassembly, cleaning, replacing inoperable parts and reassembly. Can the motorboats enter the U.S. duty free under the Korea FTA?

59.Automatic teller machines (ATMs) in HTS 8472.90.10 are manufactured in Malaysia, imported into Singapore and subsequently imported into the United States with country of origin ”Malaysia” and country of export ”Singapore”. Which of the following statements is true regarding the Singapore Free Trade Agreement (SGFTA)?

60.Under the Australia FTA, which of the following are not indirect materials?

61.Ski board boots in HTS 6403.12.30 are manufactured in Canada of both NAFTA and 3rd-country materials in such a manner as to comply with the applicable General Note 12(t) requirement and subsequently imported into the U.S. The importation meets the NAFTA’s direct shipment and all other requirements. Which of the following is true regarding whether NAFTA preference may be claimed to obtain the MPF exemption?

62.Importer XYZ wants to know if the shipment of flashlights that he is importing from Pakistan can qualify for preferential treatment. He supplies the cost breakdown as:

Which trade agreement could this shipment be qualified for?

63.After extensive market research, a Korean manufacturer of a canned peach and apricot fruit medley (HTS 2008.97) made of domestically grown Korean fruit is considering adding 9% Malaysian pears to the recipe and exporting the medley to the United States where consumers love pears. Will the fruit medley be eligible for Korea FTA preference and if so, what duty rate will it pay?

64.Assuming that substantial transformation, 35 percent value added, imported directly and all other requirements of the Generalized System of Preferences (GSP) are met, which of the following goods would not qualify for preferential tariff treatment under the GSP?

65.In general, a complete drawback claim, with all required documents, shall be filed within___ after the date of exportation or destruction of the merchandise or articles that are subject of the claim.

66.The definition of a ”Destruction” of merchandise that is part of a claim for drawback duty means:

67.The_____shall be entitled to claim drawback unless this party, by means of certification, assigns the right to claim drawback to an intermediate party in the following scenario:

68.What are all of the types of monies imposed on imported merchandise that may be requested on a drawback claim submitted on, or after, October 1, 2010?

69.Articles suspected of bearing counterfeit marks are detained. If the importer of the article does not provide timely information, or the information provided is insufficient for CBP to determine that the merchandise does not bear a counterfeit mark, CBP may provide the owner of the mark with all of the following, EXCEPT:

70.Articles not properly marked under the Country of Origin regulations shall, unless excluded, be subject to additional duties of what percentage of the final appraised value of the imported goods, unless those articles are exported or destroyed under Customs supervision prior to liquidation of the entry?

71.Articles not marked as required under 19 CFR 134 shall be subject to _______ additional duties on the final appraised value unless exported or destroyed under Customs supervision prior to liquidation of the entry.

72.John Doe took the Customs broker license exam in April 2009 at the Port of New York, and subsequently obtained his license through the Port of Miami in October 2010. One month later, John was hired by Unknown Customs Brokers (”Unknown”), a national company employing 9 other licensed brokers. Unknown possesses a corporate broker’s license. In August 2012, while perusing old Customs Bulletin notices, John realizes that Unknown did not file John’s triennially-due status report (”triennial”), nor pay the associated fee. Moreover, John searches his records and finds a written notice sent by certified mail in March 2012, from the Miami Port Director, notifying him of the suspension of his license. John is determined to continue his career as a licensed broker. Which of the following courses of action should John take?

73.A broker hires an employee on a full-time basis on March 1, 2012. The employee was working at the brokerage on a part-time basis since January 1, 2011. By which date is the broker required to inform the Port Director of this new employee?

74.A broker hires someone as an employee on March 15, 2013, whose broker license was revoked on February 5, 2002, with prejudice. Per CBP regulations, what is the next course of action?

75.Payment of an annual user fee of $138 is required for each permit and the user fee must be paid by the due date as published annually in which of the following:

76.When must a Licensed Customs Broker file a written status report with CBP?

77.When must an individual broker who is a qualifying member of a partnership provide written notice to the Assistant Commissioner of CBP, with copies of the written notice to the director of each port through which a permit as been granted, that his or her employment as qualifying member has been terminated?

78.Which of the following is a requirement for an individual customs broker license?

79.Which of the following is NOT ”Customs Business” as defined in the Code of Federal Regulations?

80.A broker must submit new employee information to CBP within 10 calendar days after the broker has employed a new employee for 30 consecutive days. Which of the following data elements is NOT a requirement in this notification?