Customs Broker License Exams

October 2012

1. Select the classification for a hand-operated mechanical floor sweeper, not motorized, with a plastic handle and cover. The sweeper contains an internal trash receptacle that is filled as the sweeper is pushed across the room and the brushes cause the trash to be swept into the receptacle. What is the correct classification of the floor sweeper?

2. What is the correct classification of men’s woven dress shirts of 85% cotton, 15% Jute, and one color in warp and filling?

3. The Harmonized Tariff Schedule of the United States (HTSUS) is annotated, meaning it contains various notes in addition to those notes used at the international level. Which of the following notes are not legally binding in the United States?

4. The commercial invoice received with the entry package at your desk for review indicates that the imported merchandise consists of a new 2012 Mazda3 i SV 4-doors, passenger car, including the following manufacture’s specifications: 2.0 liters; 2,000 cc; 4 cylinders; automatic transmission; and an interior dimension/volume of 2.6 m3. What is the correct classification of the new 2012 Mazda3 i SV?

5. What is the correct classification of women’s knitted overcoats made of 100% cotton?

6. A shipment of bicycles is presented through a CBP Form 3461 (Entry/Immediate Delivery) for Import Specialist review. The bicycles (non-motorized) are invoiced as having an outer circumference of 53.34 cm. What is the correct classification of the bicycles?

7. What is the correct classification of vulcanized neoprene rubber seals used in the engine of a motor vehicle?

8. Select the classification for coffee oil that is an extract of coffee produced by the mechanical pressing of roasted coffee beans. It does not contain any essential oils or sugars, it is not decaffeinated, and it is used in instant coffee. What is the correct classification of the coffee oil?

9. What is the correct classification of 500 dozen women’s girdles produced from 100% polyester knitted fabric?

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

11. What is the correct classification of frozen, uncooked, shrimp stuffed ravioli packaged with a white wine sauce made in Italy, which contains 51% by weight of shrimp?

12. Which classification is subject to Subheading Note 1?

13. A provision in the Harmonized Tariff Schedule of the United States (HTSUS) allows a free rate of duty for U.S. goods returned (articles for temporary use while abroad) after being exported. However, these goods cannot be advanced in value, or improved in condition by any process of manufacture or other means while abroad. Which of the following HTSUS number should be assigned for the above statement?

14. Select the classification for a ”heated blanket”. The electric blanket consists of electric wires that are sandwiched between two layers of 100% polyester knit fleece fabric that are hemmed on all sides. An electric controller and power cord are included. What is the correct classification of the electric blanket?

15. What is the correct classification of leather baseball batting gloves?

16. 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 correct classification of the remote control device being imported?

17. Select the classification for women’s footwear with open toes or open heels. The shoes have an external surface area made of cotton on the top, and have outer soles of textile materials, which have the greatest surface area in contact with the ground. What is the correct classification for the shoes?

18. What is the correct classification of fresh or chilled boneless bovine meat that is not processed and imported from Australia with a beef export certificate?

19. Which one of the following criteria is not used in the demonstration of a claimant in order to be exempt from the restructuring of a drawback claim?

20. On March 15, 2005, a machine was imported into the United States and was tested for precision. The imported machine was then sold and exported to a customer in Canada. How much of the imported duty paid may be requested for a refund on a drawback claim?

21. Importer A imported shirts into the United States on July 15, 2011. These shirts remained in a warehouse until sold. Importer A finds a foreign buyer for these shirts on September 20, 2011. The shirts were exported on October 15, 2011. Within how many years must the drawback claim be filed from the date of export?

22. Company ABC imported shoes from Italy on June 2, 2011. Company ABC sells the shoes to Company 123 (located in the U.S.) on June 30, 2011. Company 123 exports the shoes to Germany. What must Company ABC obtain in order to claim drawback on the imported shoes?

23. Which one of the following duties or fees is not subject to drawback?

24. Which form must be presented to CBP to request to export merchandise that is intended to be claimed on a rejected merchandise drawback?

25. When can a broker be listed as an ultimate consignee on a formal entry?

26. What is the correct entry type code for a warehouse withdrawal with a quota/visa and antidumping/countervailing duty (AD/CVD) combination?

27. Which one of the following nonresident principals may import their merchandise into the U.S. Customs territory?

28. What information is not required on a commercial invoice furnished with the entry, before release of the merchandise is authorized?

29. An importer places an order for beer steins in Germany on January 1, with a manufacturer, Gregor International GmbH (”Gregor”), who demands payment in Euros. The Euros are wire transferred to Gregor in Germany and received by Gregor on January 3. The steins are exported to the United States on January 4, by ship, and arrive at the CBP Port of Entry in New York on January 10. An entry summary is filed on January 17. Which date is used for conversion of the Euros into U.S. dollars for CBP purposes?

30. Which of the following is not an acceptable format for reporting an IRS, social security, or a Custom and Border Protection (CBP) assigned number for the consignee on CBP Form 7501?

31. Which date is used for calculating the applicable rate of duty?

32. Block 39 of CBP Form 7501 should reflect which Fee Class Code?

33. What is the entered merchandise?

34. In what location was the merchandise unladen?

35. What is the minimum amount of the bond?

Use the below-identified abbreviated CBP Form 7501, answer questions 36 through 39.

36. What is the ”Total Entered Value”

36. What is the “Total Entered Value”?

37. What is the date used for currency conversion purposes?

38. What is the amount of duty due?

39. Which of the following would apply to the importation of the olives?

40. Which of the following is the licensed U.S. Customs broker?

41. Which of the following is a false statement?

power of attorney) to sign documents pertaining to Customs business.

42. An express consignment operator named, Speedy Ship, LLC (who is not a licensed broker), has a shipment arrive at their facility in the New York district. Speedy Ship, LLC, hires a local licensed customs brokerage to make entry, in Speedy Ship’s name, and provides the broker with a power of attorney. The broker prepares the entry documents with Speedy Ship, LLC, identified as the Importer of Record and prepares a continuous custodial bond. Should Speedy Ship, LLC, be the Import of Record for this shipment?

43. What is the correct entry summary type for bonded warehouse merchandise being withdrawn for consumption that is subject to quota and antidumping?

44. Fabric produced in Hong Kong is sent to China, where it is cut into pieces and assembled into T-shirts. The completed T-shirts are sold and imported into the United States. After being entered into the U.S., the T-shirts are exported to Mexico for screen printing, and then returned to the U.S. under the Harmonized Tariff Schedule of the United States (HTSUS) heading 9802. What country of origin should be shown on the CBPF 7501 when the T-shirts are imported into the U.S. from Mexico?

45. What is the minimum bond amount for a Single Transaction Bond for a non-quota consumption entry of onions valued at $15,000, and with the total duty/taxes/fees amount of $250?

46. If merchandise is imported and initially entered into a Customs Bonded Warehouse (CBW), when does the five year period begin?

47. What method of country of origin marking is required for shears, scissors, knives, forks, and/or blades?

48. Merchandise entered under a Temporary Importation Bond (TIB) is permitted to remain in the United States for a one-year period subsequent to the date of importation (with a maximum of two one-year extensions allowed). However, there are exceptions to this time period. Which tariff number is an exception to this maximum time?

49. Which of the following is the equipment description code used to indicate an open hopper car when transmitting Entry Summary and related information through the Automated Commercial Systems (ACS)?

50. Which of the following exemptions for marking requirements is false?

51. Which form is to be filed by the importer at the port of entry, following the abandonment of goods entered under bond?

52. Who is not required to maintain records regarding imported merchandise, and also not required to render such records for examination and inspection by CBP?

53. A redelivery notice is issued by the Entry Branch for the return of produce that was refused entry by the Food and Drug Administration. The importer has 90 days from the date on the Notice of Redelivery to return the merchandise for exportation and destruction. The importer fails to return the produce within the allotted time frame. What section of law does this violate?

54. Within what time frame must in-bond merchandise traveling by air arrive at the port of destination or the port of exportation?

55. If a container is entered into the U.S. under 10.41a Instruments of International Traffic and does not exit the U.S. within 365 days of the date of admission, when must a consumption entry be made?

56. When the demand of the port director for return of merchandise to CBP custody is not complied with, liquidated damages shall be assessed. The damages shall be in an amount equal to the value of the merchandise not returned or _____ time(s) the value of the merchandise not returned if the merchandise is restricted or prohibited merchandise or alcoholic beverages.

57. Your client, who is selling to U.S. Bethlehem Steele, calls in a panic stating that she knows that goods require country of origin markings. However, she doesn’t know how she is going to mark 400 containers of 10,000 tiny bolts before importing them from Mexico to the U.S. within the week. How should you advise your client?

58. In accordance with Title 19 of the Code of Federal Regulations, a mark, brand, stamp, or label is deemed acceptable for markings of distilled spirits, wines, and malt liquors in bulk based on the nature, surface, and composition of the container. Who makes the determination as to whether the marking is acceptable?

59. Cotton napkins were cut, sewn, and finished in Vietnam. The cotton fabric was woven in China. The sewing thread was made in Taiwan. The finished napkins transited Singapore or their way to the United States, where they were entered for consumption. What is the country of origin of the napkins?

60. A person, whose protest has been denied in whole or in part, may contest the denial by filing a civil action in the Court of International Trade. What is the time frame in which a person must file the civil action after being notified of the denial?

61. Which form must be presented to CBP to request bills or refunds to be paid to a third party?

62. A valid power of attorney allows a Customs Broker to transact Customs business on behalf of a commercial importer that is not defined as a partnership for what period of time?

63. Generally, what is the minimum amount for a Single Transaction Bond presented on form CBP 301?

64. What shall be presented to CBP to obtain release of a shipment containing wild animal parts?

65. Which of the following is not required in order to obtain an individual broker’s license per Title 19 of the Code of Federal Regulations?

66. The U.S. Air Force has developed a new, secret Stealth aircraft, XP-070. It is being sent to an undisclosed location in Germany for extensive testing, evaluation, and modification. Upon arrival in Germany, the new Stealth aircraft engine did not fire up and the foreign agency refused to take possession. The carrier shipped it back to the United States. to the U.S. Air Force. Entry was made in the port of Buffalo, and the U.S. Air Force filed all the necessary paperwork to clear the shipment. Which of the following is a true statement?

file a protest because the merchandise is not subject to any exemptions in the Harmonized Tariff Schedule of the United States.

67. What class of bonded warehouse is to be used for the storage of merchandise belonging or consigned to the proprietor of the warehouse?

68. When claiming North American Free Trade Agreement (NAFTA), a certificate of origin is required to be in the possession of the importer at the time preferential treatment is claimed. When is this not a requirement?

69. In Italy, granite is cut or sawn with a flat or even surface. The stone is then shipped to Canada, where further processing, such as grinding and polishing, takes place to produce a granite countertop. The processing in Canada contributed to over 60% of the transaction value of the finished product. Does the finished countertop qualify for preferential treatment under the North American Free Trade Agreement (NAFTA)?

70. As described under the North America Free Trade Agreement (NAFTA), which of the following is considered wholly obtained or produced if imported from Canada?

71. Rayon yarn from China was woven into fabric in India, and then cut and sewn into blouses in Morocco. The blouses were shipped from Morocco to France, where they were consolidated into a container bound for New York. Does the resulting garment qualify for the Moroccan Free Trade Agreement, and if so, under what portion of the agreement?

72. Footwear is imported on December 21, 2009, with entry summary filed on January 4, 2010, on entry number ABC-12345678. At the time of entry summary, the footwear is entered at the Harmonized Tariff Schedule of the United States (HTSUS) 6402.12.0000/free/MPF. An import specialist reclassifies the footwear at HTSUS 6402.99.0800/37.5%/MPF on April 10, 2010. The entry liquidates with the changes on April 30, 2010. The importer of record receives a bill for additional duties due as a result of the reclassification. The importer completes its review and determines the footwear qualifies for North American Free Trade Agreement (NAFTA). By which of the following dates MUST a valid NAFTA claim be filed to receive a refund in duties?

73. In Italy, granite is cut into a rectangular block or slab. This stone is then shipped to Canada where it is further cut, ground and polished to produce a granite countertop. The processing in Canada contributed over 60% of the transaction value of the finished product. Does the finished countertop qualify for preferential tariff treatment under the North American Free Trade Agreement (NAFTA)?

Chapter 68 in the NAFTA country.

74. An importer who claims preferential tariff treatment on a good under North American Free Trade Agreement (NAFTA) shall provide a copy of the certificate of origin pertaining to the good, at the request of the port director, which is in the possession of the importer. By whom should the certificate of origin be signed?

75. Importer ABC Company wishes to purchase trademarked shirts from seller 123 limited. The price of the shirts is $75.00 each. 123 limited will not sell unless ABC Company pays an additional fee of $3.00 per shirt for the right to the trademark. What is the additional fee?

76. Merchandise that is authorized to be released under the Immediate Delivery procedure is exported from Mexico on April 29, and arrives in a CBP Port of Entry 11:45 P.M. on the same day. An Entry is filed with CBP cargo personnel, and the merchandise is released by CBP thirty-five minutes later at 12:20 A.M. on April 30. The merchandise is transported to the Importer’s premises, stored one day, and released to the Importer’s customers on May 1. The Entry Summary is filed on May 6, with all duties, fees, and taxes paid. Which date would be used to determine the rate of duty of the merchandise?

77. Wafer manufacturing equipment is sent to China for repair under warranty and returned. The value of the equipment prior to repair is $18,000. The value of the repairs is $2,000. The equipment is properly classified under 8486.10.0000 and 9802.00.4040 is properly claimed. What is the merchandise processing fee due?

78. BMW USA imports a purchase of 2,500 brand new 2013 X5s invoiced at $40,000 each, exfactory, from its affiliated parent company, BMW of Germany. BMW of Germany normally charges an additional $100 each for the X5s, however, they owed BMW USA $250,000 which was paid on a previous shipment and have deducted this from the invoice price. The related party transaction does not influence the price paid to the parent company. The seller requires the buyer not to sell or exhibit the merchandise before the model year. Invoice values are also listed in the following amounts: ocean freight $2,000, and marine insurance $1,850. What is the transaction value of the merchandise?

79. Toyota USA purchased a shipment of 1,000 Solara tires from Toyota Japan for a unit price of $50 each. Toyota Japan is the parent company of Toyota USA, and the relationship does not affect the price. The U.S. importer supplied a $500 design for work necessary to manufacture the tires to the U.S. importer’s specifications, free of charge, to the foreign shipper. The designs were purchased from an engineering company in the U.S. for submission to the foreign supplier. What is the unit price of the shipment?

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.