Customs Broker License Exams

April 2015

Category 1: Power of Attorney

1) A Power of Attorney issued by a partnership shall be limited to a period not to exceed_ years.

2) Where a limited partnership is the Grantor of a power of attorney, must accompany the power of attorney.

3) ABC Brokers has authorized its unlicensed employee Joe to sign Customs documents on its behalf, and has executed a valid Power of Attorney for this purpose. Which of the following correctly reflects Joe’s legal authority to sign documents?

Practical Exercise 1: Category II: Practical Exercises
Using the invoice provided below, answer questions 4 and 5.

4) If Dallas, TX is the port of entry, what is the port code?

5) What is the Manufacturer’s Identification Code?

Practical Exercise 2:
Use the below-identified abbreviated CBP Form 7501 ”Entry Summary” to answer questions 6 through 8.

6) Which date is used for calculating the applicable rate of duty?

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

8) Which of the following is the entry type?

Practical Exercise 3: Answer questions 9 and 10 using the abbreviated Entry Summary for a shipment that arrived from Ghana via United Airlines at Washington Dulles airport below:

9) What is the Special Program Identifier?

10) What is the ”Total Entered Value” that should be entered into Block 35?

Category III: Entry

11) A Foreign Trade Zone Operator shall prepare a reconciliation report within days after the end of the zone/sub-zone year unless the port director authorizes an extension for reasonable cause.

12) Records relating to customs transactions, other than powers of attorney, must be retained by a licensed customs broker for at least ___ year(s) after the date of entry.

13) What are the recordkeeping requirements for Export Certificates for sugar-containing products that are subject to tariff-rate quota?

"When quantities inside a quota are charged lower import duty rates, than those outside (which can be high)." -WTO website

14) The initial 1 year period of validity for an A.T.A. Carnet_.

"The ATA Carnet is an international Customs document that a traveler may use temporarily to import certain goods into a country without having to engage in the Customs formalities usually required for the importation of goods, and without having to pay duty or value-added taxes on the goods." U.S. Customs & Border Protection

15) Goods are brought into the customs territory of the United States by the National Aeronautics and Space Administration (NASA) from space or from a foreign country as part of a NASA international program. What type of entry is required for these goods?

A shipment arrives on the 3rd of the month. Use the calendar provided below to answer the question.

16) The entry is filed and cargo is released on the 13th. The importer is not required to file the entry summary documentation at the time of entry. By which date shall the entry summary be filed with CBP?

A shipment arrives on the 3rd of the month. Use the calendar provided below to answer the question.

17) If the entry is not filed, by which date shall the master or agent of the vessel notify CBP of un-entered cargo?

18) OrangeX imported 730 cases of pencils, and merchandise was released to a bonded warehouse. OrangeX made a withdrawal for 25 cases for consumption. OrangeX decided to sell the remaining 705 cases to an importer called Purple2. Purple2 has a bonded warehouse and a withdrawal was made for the 705 cases to be entered into their warehouse. What is the entry type for this process?

19) 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:

20) Which of the following satisfies the requirement to export merchandise in accordance with customs law?

21) A manufacturing Foreign Trade Zone (FTZ) files weekly entries for consumption. This week's entry was for 50,000 widgets. An order comes in for an additional 2,000 widgets, which will be produced and delivered by the end of the week. Which of the following is the correct course of action for the FTZ operator to take?

"Foreign-Trade Zones (FTZ) are secure areas under U.S. Customs and Border Protection (CBP) supervision that are generally considered outside CBP territory upon activation. Located in or near CBP ports of entry, they are the United States' version of what are known internationally as free-trade zones." -U.S. Customs & Border Protection

22) A transfer of merchandise from one FTZ to another at the same port and with the same operator must be .

23) Absolute quota merchandise imported in excess of the admissible quantity may NOT be _____

"Absolute quotas limit the quantity of goods that may enter the commerce of the United States in a specific period. When an absolute quota is filled, further entries are prohibited during the remainder of the quota period. Some quotas are global while others are allocated to specified foreign countries." -U.S. Customs & Border Protection

24) A walking stick contains markings on it which will allow the user to measure the length of an item in both inches and centimeters. What is the classification for a walking stick that can also be used as a measuring device?

25) What is the classification for a correcting fluid pen consisting of a mixture composed of Tetrahydrofuran, over 5% Benzoyl alcohol (organic compound), water and hydrofluoric acid (organic compound)?

26) Mango chips are thinly sliced pieces of mango that have been fried in low temperature vegetable oil, salted, and dried. Mango chips are kept in sealed foil pouches and composed of approximately 80% mango slices, 16% vegetable oil, and 4% salt. What is the tariff classification of the mango chips?

27) What is the tariff classification of a laser printer capable of internet facsimile, local and network printing, network scanning and copying, and has a print speed of 10 ppm?

28) Extracted oleoresins are obtained from natural cellular raw plant materials (usually spices or aromatic plants), either by organic solvent extraction or by super-critical fluid extraction. Rosemary oleoresin is processed from rosemary leaves. What is the classification of rosemary oleoresin extract?

29) A seaweed-based fertilizer is composed of 5% potassium and 95% other fertilizers. It is intended to grow an array of vegetables in small planting pots. It will be imported in the form of a powder fertilizer in one kilogram packages. What is the tariff classification of this fertilizer?

30) A lavatory mirror assembly is a composite good constructed of a glass mirror framed in aluminum/nickel alloy. The glass mirror, which is not optically worked, is coated on the back side with a silver substrate and treated on the front side to prevent scratches and marks. The mirror assembly measures approximately 35.56 cm by 35.56 cm (not including the frame) and is designed for use exclusively in aircraft. What is the classification of this lavatory mirror assembly?

31) What is the classification of a watch box constructed of molded plastic wholly covered on the exterior by man-made textile fibers?

32) What is the classification of plastic gutters for a building?

33) A plain weave fabric is composed wholly of nylon filament yarns of different colors, measures 45 cm in width, and weighs 50 g/m2 ? One side of this fabric has been completely covered with a PU plastic coating. The fabric has been cut from a wider piece with a hot knife, creating two false selvages. What is the classification for this fabric?

34) You are using transaction value of merchandise that is identical or similar in nature, but varies in price. Which of the following can be used to adjust for these differences when the merchandise is being appraised?

35) In relation to valuation of merchandise,what is the general definition of ”Price Actually Paid or Payable”?

36) What is the amount of the IRS Excise Tax on 72,000 small cigarettes with the following characteristics?

37) A Swiss manufacturer produces 1000 gadgets at a total cost of $6000 ($6.00 per piece). A Canadian distributor then buys the entire lot for a total price of $9000 ($9.00 per piece), and has it shipped from Geneva to his warehouse in Toronto.The Canadian distributor cannot find any buyers for the goods, which end up sitting in his warehouse for over three years,thereby becomings lightly outmoded. Eventually, he manages to locate a U.S. customer who negotiates with him and finally agrees to purchase half the lot(500 pieces) at a total price of $4000 ($8.00 per piece).The U.S. customer then imports the 500 pieces, having them delivered to his premises in Chicago. There is no relationship between any of the parties mentioned, and all businessis conducted at arm'slength. What isthe appraised value of the merchandise imported into the United States?

38) In a transaction with Chinese supplier Rose Enterprise, the U.S. importer Thorn Incorporated agreed to pay $100,000 for the sale of widgets, shipped FOB (Free On Board) Chicago. However, Rose Enterprise owed a $20,000 debt to a third party, Flower Corporation. Thorn Incorporated agreed to pay that debt and then pay $80,000 directly to Rose Enterprise. The international shipping cost was $10,000. What is the Transaction Value of the imported widgets from China?

39) Your client is importing a used aircraft engine manufactured in England from a Canadian shipper. Your client has accepted the aircraft engine on consignment and has promised to find a US buyer for the engine. Your client will receive a commission on the sale of 5%. The asking price for the engine is $90,000. The shipper paid all of the transportation costs ($1,000) from its dock to your client’s dock on a through bill of lading. What is the entered value of the used aircraft engine?

40) A shipment of Evaporative Coolers with a documented U.S. value of $100,000 was exported to Taiwan for $2000 in repairs, and then reimported into the U.S. Which of the following value(s) and classification(s) apply to the Evaporative Coolers?

41) Your client receives a CBPF 29 resulting in an increase in duties exceeding $17.50 for 100% polyester sweaters. Which of the following regulations cites this authority?

VII: Free Trade Agreements

42) Which of the following is NOT a United States Free Trade Agreement (FTA)?

43) Where can you file a post-importation duty refund NAFTA claim?

44) Of the below identified trade agreements, which one is the exception that allows the importer, for an originating good, to claim a refund of excess duties if not originally conferred in the entry by special tariff treatment to claim their duty refund within one year?

45) What is the correct symbol to use when claiming duty-free treatment for the Caribbean Basin Initiative (CBI) on an eligible commodity?

46) Under the Australia FTA, which of the following are NOT indirect materials?

VIII: Drawback

47) ____________________ are/is required to correctly calculate the amount of drawback due.

48) Rejected merchandise may not be ____________________.

49) Merchandise processing fees are not subject to drawback except for merchandise processing fees for ____________________.

50) Which of the following is not a type of drawback entry?

IX: Antidumping and Countervailing Duties

51) A certificate of reimbursement must be submitted to CBP prior to liquidation of any antidumping entry. Who is responsible for signing the certificate?

52) Importer ABC is importing widgets produced by manufacturer XYZ in China. The widgets are subject to antidumping duties. The rates that were posted in the Federal Register and set by the Department of Commerce's International Trade Administration for the antidumping case were:

  • Producer and/or exporter: DEF, rate 5.5%
  • Producer and/or exporter: GHI, rate 18.5%
  • Producer and/or exporter:LMN,rate 10.0%
  • Producer and/or exporter: XYY,rate 15.0%
  • Producer and/or exporter:China-wide entity,rate 15.5%
  • Which antidumping deposit rate is importer ABC required to pay for his importation of widgets?

    53) Which of the following duties and fees is not subject to drawback?

    54) It will be presumed by CBP that the exporter or manufacturer paid or reimbursed the importer for antidumping duties or countervailing duties if:

    55) Which article is excepted from the requirements of country of origin marking in accordancewith the provisions ofsection 304(a)(3)(J),Tariff Act of 1930, as amended (19USC1304(a)(3)(J))?

    56) What is the difference between restricted gray market goods and goods bearing counterfeit marks?

    57) Which of these articles or productsis not an exception to marking requirements under the Customs regulations?

    58) Alaskan souvenir carving knives were made in China and imported into the U.S. from Taiwan. Which of the following is an acceptable method of country of origin marking for the knives?

    59) Which of the following is a ground for suspension or revocation of the privilege of operating a container station?

    60) Lever-rule protection applies to, and provides protection for ____________________.

    61) Big Boss Customs Brokers (BBCB), a licensed broker, decides to import sunglasses (9004.10.0000) to cash-in on the big tourist business in the area. One of their clients regularly imports similar items. Which of the following statements is correct?

    62) What is the maximum penalty that CBP may assess against any person who intentionally transacts customs business without holding a valid broker’s license?

    63) A broker terminates the individually licensed broker qualifying their corporate license in Houston, Texas. The same individual also was the qualifier for their local permit. The decision is made to replace the positions vacated with two different individually licensed brokers. How long do they have to replace each individual before the license and permit are revoked by operation of law?

    64) A protest undersection 514 coveringthe liquidationof an entrymade on or afterDecember 18, 2004 mustbe filed and completed withinwhattimeperiodin orderto be considered timelyfiled?

    65) Which of the following customs transactions is NOT required to be performed by a licensed Customs broker?

    66) For each release of merchandise, what is the maximum penalty that may be assessed against an importer who is negligent in producing entry records at the request of an Import Specialist?

    67) Requests for alternative methods of storage for records required to be maintained as original records must be made from which of following?

    68) If no extension has been provided by the Fines, Penalties, and Forfeitures Officer, a petition for relief in a seizure case is due within:

    69) A decision to mitigate a penalty or to remit a forfeiture upon condition that a stated amount is paid will be effective for:

    70) Which of the following guidelines are NOT included as an appendix of the CBP Regulations?

    71) Licensed broker Larry receives a Pre-Penalty Notice from the local CBP Fines, Penalties, and Forfeitures Officer (FPFO) informing him that CBP is contemplating issuance of a $10,000 penalty against him for failing to exercise responsible supervision and control over Customs business which he has transacted. Larry files a timely response to the Pre-Penalty Notice with the FPFO claiming that the violation did not occur. After reviewing Larry’s response, the FPFO may not do which of the following:

    72) Who may approve a request for extension to file a petition for relief?

    73) An importer submits a prior disclosure pertaining to misclassification of its imported widgets. During its verification of the disclosure, CBP discovers that the importer also furnished undeclared assists to the manufacturer. The undeclared assists were were used in the production of the widgets. Which answer describes how the undeclared assists will be treated?

    74) Within how many days are bills resulting from dishonored checks or dishonored Automated Clearinghouse (ACH) transactions are due?

    75) What merchandise is eligible for bonded warehouse entry?

    76) An importer notifies CBP in writing of an anticipatory breach on a Temporary Importation Bond (TIB). What percentageof the liquidated damages that will be assessed at the time of the breach shall the importer pay to CBP?

    77) Which regulatory authority provides that the Commissioner of Customs can delegate specific instructions for bond requirements to protect the revenue?

    78) Upon issuance of a detention notice for suspected IPR violative articles, CBP shall disclose to the owner of the trademark all of the following pieces of information, EXCEPT:

    79) CBP may detain articles suspected of bearing a counterfeit version of a trademark that is registered with the U.S. Patent & Trademark Office and recorded with CBP. What notification does the detention notice provide to the importer?

    80) Which of the following shipments does not contain restricted graymarket merchandise as defined in 19 C.F.R. 133.23?