Customs Broker License Exams

October 2014

1. ABC Brokers would like to authorize 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 is a correct statement related to signing customs documents?

2. What notification must be provided on, or attached to, any power of attorney executed by new clients?

3. Which free trade agreement is claimed?

4. What is the correct value for Block 35, ”Total Entered Value”?

5. What is the correct value for Block 39, ”Other”?

6. Which of the following parties may NOT file a protest?

7. Goods are imported under a consumption entry on January 3, 2007. The liquidation of the entry was suspended under an antidumping investigation. On October 18, 2012, CBP liquidates the entry for a duty increase. Based on the above, how long must a broker maintain a consumption entry subject to an antidumping investigation?

8. In instances where a transaction is in a foreign currency, CBP will use an exchange rate in effect on the date of _________ for conversion purposes.

9. Which of the following is NOT required information necessary to file a protest?

10. Which party is NOT qualified to be an importer of record on an entry?

11. Merchandise owned by the Danish military will be imported to the United States from Denmark for a military exercise under DSP 61, license for temporary import of unclassified defense articles. The merchandise will be filed under Harmonized Tariff Schedule of the United States (HTSUS) subheading 9809.00.40. The shipment will arrive at Long Beach seaport on a commercial vessel. Based on this scenario, which of the following is the importer of record required to pay?

12. The exemption from entry under General Note 3(e), HTSUS, for undeliverable articles, is subject to meeting specific conditions. Which of the following is NOT a requirement to support this exemption?

13. Any merchandise or baggage regularly landed, but not covered by a permit for its release, shall be allowed to remain at the place of unlading until the ____ calendar day after landing. No later than ____ calendar days after landing, the pilot or owner of the aircraft or the agent thereof shall notify CBP of any such merchandise or baggage for which entry has not been made.

14. A consignee, in whose name an entry summary for a consumption entry was made, would like to be relieved from statutory liability for the payment of any increased and additional duties. The consignee declares that he is not the actual owner of the merchandise. On what form shall he file the declaration of owner?

15. When the following merchandise is reimported into the United States, the payment of duties will be required on all EXCEPT:

16. What is the appropriate entry type for merchandise with Anti-Dumping/Countervailing Duties withdrawn from a warehouse?

17. What form is required for the admittance of merchandise into a Foreign Trade Zone?

18. Deemed liquidation, by operation of law, will occur when a warehouse entry is not liquidated within________________ from the date of final withdrawal of all merchandise covered by a warehouse entry for which liquidation is not otherwise suspended.

19. A carrier has custody of in-bond merchandise coming from Mexico or Canada, for which entry has not been made. Within how many calendar days is the carrier required to notify CBP of eligible General Order merchandise?

20. The Port Director may approve a blanket application to manipulate warehoused goods on CBP Form ________, for a period of up to one year, for a continuous or a repetitive manipulation.

21. The permit file folder to close a warehouse entry is due ______ calendar days after the final withdrawal?

22. CBP Form ________ is used for bond approval and each person who is required by law, regulation, or specific instruction to post a bond to secure a transaction(s) must submit the bond on this form.

23. Which is NOT a condition of a basic importation and entry bond?

24. Bonds including the application, if required by 19 CFR 113.12, and riders may be filed up to ____________ days before the effective date to provide adequate time for CBP administrative review and processing.

25. The minimum amount of any customs bond:

26. What is the classification of 200 dozen women’s body shaping girdles produced from 100 percent man-made fiber polyester knitted fabric?

27. What is the classification of 1,000 dozen worn boys’ knitted pants made of 100 percent cotton fabric imported from China?

28. What is the classification of an alloy steel, non-welded gas line with an outside diameter of exactly 114.3 millimeters?

29. Your client is importing non-refractory, earthenware ceramic pipes designed for use as rainwater drainpipes. Where are the ceramic pipes classified?

30. What is the classification of ladies bovine leather bracelets in 7-inch rolled lengths, dyed various colors, each bound with a decorative band and a clasp of silver plated base metal valued at $2.50?

31. What is the classification for a photolithography machine used in the manufacture of integrated circuits?

32. A household sewing machine comes with four spools of polyester thread and a sewing machine accessory kit. The accessory kit consists of a plastic case containing the following items: sewing machine needle set, two screwdrivers, tweezers, thread, spool cap, brush, oiler, anti-spill net, rolled hemming throat plate, tape guide, edge guide, and edge guide screw. Each spool of thread contains 400 meters of 100 percent polyester thread. What is the classification of this household sewing machine, thread, and accessory kit?

33. An article described as ”sea vegetable salad” consists of seaweed, cut to pieces in different sizes, with salt added, frozen packed in sealed plastic pouches of 400 grams for retail sale. What is the classification of the sea vegetable salad?

34. What is the duty and Merchandise Processing Fee (MPF) that should be assessed in the following scenario? An importer sends a high definition projector to Japan for repairs and alterations under warranty. Upon re-importation to the United States, the importer correctly classifies the high definition projector under HTSUS 9802.00.4040 and 8528.49.6000. They declare a 9802 value of $5,000 and an 8528 value of $50,000. There are no other goods in this air shipment.

35. An importer is importing unassembled components of a high pressure water-jet cutting machine (i.e., a cutting head and a pump) on the same entry. A water-jet cutting machine utilizes a jet of high-speed water to cut through material upon contact. The water-jet cutting machine is able to be used in a variety of industries such as automotive, textile industries and plastic industries. The cutting head and the pump represent the aggregate of distinct component parts that establish the identity of the machine and give it a defined function of a complete water-jet cutting machine. What is the classification for the cutting head and the pump, imported as described above, used in a water-jet cutting machine?

36. What is the classification of a locomotive train set with a die-cast metal body, a tender, two coaches, a caboose, metal tracks, two miniature figures, a transformer and a working railroad crossing signal, designed and labeled for ages 12 and older?

37. A women’s outerwear jacket is constructed of a bonded or laminated shell material. The exterior portion is a 100 percent polyester woven fabric which is bonded to a 100 percent polyester warp knit brushed inner fabric. There is no plastic visible when the material is examined in cross-section. A recent CBP laboratory analysis found that the brushed warp knit fabric is not of pile construction, is not water resistant, and does not meet the requirements for Chapter 60, Note 1(c), to the HTSUS. The garment reaches the hip area and features a full front opening secured by seven snap button closures and a hemmed bottom. What is the classification of this women’s outerwear jacket?

38. What is the classification of an 11-inch laptop, wireless mouse, AC plug with a power adapter and USB cable, and Internet Security software, imported together and packaged and put up together for retail sale as a set pursuant to General Rule of Interpretation 3(b)? The laptop weighs less than 10 kg and meets Note 5(A) to Chapter 84, HTSUS. The wireless mouse meets Note 5(C) to Chapter 84, HTSUS.

39. Assists are supplied directly, indirectly, free of charge, or at a reduced cost by the buyer of imported merchandise for use in connection with the production or the sale for export of the merchandise to the United States. Which of the following is NOT considered as an assist?

40. Transaction value, the price actually paid or payable for the imported merchandise sold for exportation to the United States, includes all of the following EXCEPT:

41. Which of the following are NOT considered ”Related Persons” when determining the transaction value of related parties?

42. How long does the importer have after liquidation to request a written explanation of how the value of the imported merchandise was determined?

43. An importer’s first shipment of 10,000 units of electrical switches was invoiced for $100,000.00. The terms of sale are Delivered Duty Paid (DDP), the duty rate is 2.7 percent, and the merchandise processing and harbor maintenance fees (MPF and HMF) are 0.3464 percent and 0.125 percent, respectively. In addition, there are non-dutiable charges (NDCs) of $4,000.00 for ocean freight, and $600.00 for insurance and an added value amount of $2,000.00 on the invoice for a mold provided to the producer by the importer at no cost. The mold will produce 50,000 units, with full value applied to the first import of the molded articles. What is the transaction value for this shipment of electrical switches?

44. A U.S. importer purchased vacuum pumps from a manufacturer located in Parma, Italy. He paid $37,980 ex-factory. Inland freight from Parma to the port of Genoa, Italy cost $375. The price does not include U.S. duty (2.5 percent ad valorem for the vacuum pumps), MPF (.3464 percent), and HMF (.125 percent). What is the entered value?

45. An importer provides a machine to a manufacturer free of charge, for use in the production of imported merchandise. The machine cost was $50,000 and the cost for transporting the machine to the manufacturing facility was $4,500. Which declaration would be appropriate for the entered value of the machinery?

46. When considering test values in a related party transaction, the appraising officer must have: 1) Goods exported from the same country as the merchandise under appraisement. 2) Goods exported at or about the same time as the merchandise under appraisement. 3) Goods produced in the same country as the merchandise under appraisement. 4) Previously established customs values.

47. What is the calculation of transaction value of a shipment with the following details? $1,880,000 entered amount, CIF Pittsburgh, PA Duty Paid, MPF included. Price includes $30,000 ocean freight, $3,500 marine insurance, $2,000 trucking freight (Pittsburgh, PA to New York), $150 customs broker’s fee in Baltimore, $110,000 customs duties and fees. The actual duty rate is 8.3 percent. The actual MPF rate is 0.21 percent.

48. An importer who claims preferential tariff treatment on a good under 19 CFR 181.21 shall provide a copy of the good’s Certificate of Origin to the port director upon request. The Certificate of Origin shall be signed by:

49. A North American Free Trade Agreement (NAFTA) Certificate of Origin shall be accepted by CBP for .

50. Which of the following countries is NOT a signatory to the United States-Dominican Republic-Central American Free Trade Agreement (US-DR-CAFTA)?

51. Suzy Snowflake Company is importing compound ”Almotriptan” in bulk form. It is manufactured in Switzerland. The compound’s chemical abstract service (CAS) number is 154323-57-6. It is being classified using HTSUS 2935.00.6000. Under which General Note, Special Indicator, or Appendix would the item qualify for Duty Free Status?

52. An article is produced in a beneficiary developing country and shipped to the United States through a free trade zone in a beneficiary developing country. Which of the operations below may be performed in the free trade zone if a claim for duty exemption under the Generalized System of Preferences is to be made upon entry into the United States?

53. Disposable tablecloths classified in HTS 4818.30.00 are imported into the United States from Colombia. These tablecloths are produced in Colombia from Peruvian stock classified in HTS 4803.00.40. Are these tablecloths eligible for the Colombia Trade Promotion Agreement (TPA)?

54. An importer may request a post-importation duty refund claim. A duty refund claim can be claimed if a good would have qualified as an originating good under NAFTA when it was imported into the United States, but no claim for preferential tariff treatment on that originating good was made at that time. The importer of that good may file a claim for a refund of any excess duties within what time frame?

55. Which of the following free trade agreements allows the filing of a Post Importation Duty Refund Claim pursuant to 19 U.S.C. 1520(d) when a claim for preference is made after the filing of the entry summary?

56. Based on the following cost breakdown, a table made in and exported from Poland with the inputs and processing listed below, and invoiced at $16.50, is ineligible for preferential treatment under the Generalized System of Preferences because _____. $6.00 Wood from Germany $4.25 Glass from Russia $3.35 Paint from Poland $2.90 Labor in Poland

57. Which of the following is a TRUE statement given the information below? Garment: Woman’s knit top classified under 6110.30.3059 Fabric body: 95 percent Polyester & 5 percent elastomeric yarn jersey knit (Polyester from El Salvador, Elastomeric yarn from US, and fabric knit in Guatemala) Fabric Sleeves: 95 percent Rayon & 5 percent elastomeric yarn knit lace (Rayon from China, Elastomeric yarn from United States, and fabric knit in China) Sewing thread: 100 percent Polyester 200 denier (From Honduras) Cut/Sew: Nicaragua

58. 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 the subject of the claim.

59. Texas Oil Company wants to file a drawback claim on its own behalf for various petroleum products that the company exported. Which of the following statements is true?

60. How many days prior to the date of intended exportation must a Notice of Intent to Export be filed for goods that will be subject to direct identification unused merchandise drawback claim?

61. Which entry type(s) may be used for merchandise subject to antidumping/countervailing duties?

62. A certificate of reimbursement must be submitted to CBP and signed by:

63. Brown Industries imported a shipment of taper roller bearings manufactured by Beijin Bearings in Shenzhen, China. The taper roller bearings are exported by Seoul Enterprise, a company incorporated in South Korea, and are used in various automotive engine parts. Taper roller bearings are specifically classified under 8482.20.00. The Department of Commerce (Commerce) has instructed CBP to collect antidumping duty cash deposits at a rate of 115 percent for all shipments of taper roller bearings manufactured by Beijin Bearings. Commerce has further instructed CBP to apply the ”country-wide rate” of 45 percent for all shipments of taper roller bearings manufactured by Chinese companies with no established individual cash deposit rates. Further, the scope of the order excludes taper roller bearings used in the manufacture of exercise equipment and home appliances. What is the antidumping duty cash deposit collected for Brown Industries’ shipment of taper roller bearings?

64. Company A imported seven ball bearings with integral shafts from Germany, which are classified under subheading 8482.10.10 HTSUS, at a 2.4 percent ad valorem duty rate and are subject to antidumping duties. The ball bearings are shipped by air and formally entered at John F. Kennedy International Airport. The total value of the shipment is $7,598.00. The applicable antidumping duty cash deposit rate is 68.89 percent. What are the total amount of fees and estimated duties that should be reported on CBP Form 7501?

65. What is the proper country of origin marking for pliers made in China and imported into the United States from Germany?

66. What is the appropriate form used by CBP Officers to request marking and/or redelivery of merchandise?

67. Requests for alternative methods of storage for records required to be maintained as original records must be made to the following office:

68. Which is NOT required to be in the triennial status report for an individual broker?

69. For audit purposes, CBP regulations require a broker to retain entry summary documents from the date of entry. As a broker, you must keep and maintain entry summary records for ________.

70. An importer sends a check, payable to a licensed broker, for duties and fees applicable to an entry after the due date of the duties and fees. When is the broker required to remit payment for the duties and fees owed to CBP?

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

72. During a visit by CBP to a brokerage, CBP reviewed the broker’s employee list and discovered that a new employee had not been included on the employee list that the broker had submitted to CBP. How many days after hiring this employee must the customs broker report it to CBP?

73. You must be licensed to conduct ”customs business.” Which of the following activities requires a license?

74. Each broker must submit in writing, to the director of each port at which the broker intends to transact customs business, a list of the names of persons currently employed by the broker at that port. These same requirements also apply to new employees. For each employee, the broker also must provide which of the following information?

75. If a brokerage loses its permit qualifier in a district, the brokerage may request a waiver of a permit qualifier in the district. CBP will accept the waiver request when __________________.

76. What is the due date for a broker to submit the Status Report?

77. When making an oral disclosure of a violation of 19 USC 1592 or 19 USC 1593(a), the disclosing party has up to days to provide a written record of the information conveyed to CBP.

78. Prior disclosures are submitted to CBP. Which of the following statements is NOT accurate regarding the requirements for the content of prior disclosures?

79. When filing a prior disclosure, the disclosing party may choose to make the tender of actual loss of duties, taxes and fees or actual loss of revenue ______.

80. The liability for shortage, irregular delivery, or non-delivery of in-bond cargo and associated penalties is addressed in ____________________.