Customs Broker License Exams

October 2015

1) Which of the following free trade agreements is claimed?

2) What is the correct value for Block 35, ”Total Entered Value”?

3) What is the correct value for Block 39, ”Other”?

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

5) Block 31 of the CBP Form 7501 should indicate _____ for the pickles.

6) The Manufacturer’s Identification Code is:

7) What type of bond was used for this entry summary?

8) What is the mode of transportation?

9) What is the Merchandise Processing Fee amount for Block 39?

10) What duty amount should be in Block 37?

11) When may a power of attorney be revoked?

12) What is the penalty, as stated by the CBP Mitigation Guidelines, for each power of attorney that a broker does not have on file?

13) 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 reflects Joe’s legal authority to sign documents?

14) In the following scenario, what is the date of entry for the imported merchandise if it is approved to be released under the immediate delivery procedure? Eight automobiles made in Canada were purchased by an auto dealership in the United States on May 1, 2015. The automobiles were loaded onto a tractor-trailer at the Canadian assembly plant on May 5, 2015. The truck cargo was examined by CBP at the U.S. border and released into the United States on May 7, 2015. The tractor-trailer arrived at the U.S. dealership on May 8, 2015, and the automobiles were unloaded. The automobiles qualify for duty free status under NAFTA, and the entry summary with estimated duties was submitted to CBP on May 15, 2015.

15) You have a shipment of merchandise that reports 0.48 gross kilograms. What is the reportable gross shipping weight of less than 1 kilogram on the CBP Form 7501 in column 30?

16) A licensed broker is preparing an entry using a foreign manufacturer’s invoice that shows only foreign currency. The importer stated they did not have an agreement prior to exportation concerning the currency conversion rate. Which date should the broker use to determine the rate of exchange for calculation of the entered value?

17) For a consumption entry made on July 18, 2014, the statutory 1-year period for liquidation may be extended by a port director for a period not to exceed _________________.

18) For a consumption entry made on July 18, 2014, the statutory 1-year period for liquidation the total time for which extensions may be granted may not exceed _________________.

19) For a consumption entry made on July 18, 2014, the statutory 1-year period for liquidation, if CBP does not actively liquidate the entry in question by _________________, it will be deemed liquidated by operation of law on said date.

20) Which of the following is NOT a valid reason for extension of liquidation?

21) A nonresident corporation can enter merchandise for consumption if it has______________________.

22) _________________ is the procedure for delivery of merchandise to a zone without prior application and approval on Customs Form 214.

23) What CBP Form is used to admit merchandise into a Foreign Trade Zone (FTZ)?

24) Absolute quota merchandise imported in excess of the admissible quantity may NOT be_________________.

25) An FTZ Operator shall prepare a reconciliation report within _________________ days of the end of the zone/sub zone year unless the port director authorizes an extension for reasonable cause.

26) Where would a women’s knitted sweater from Ireland with a fiber content of 50% merino wool and 50% man-made rayon be classified in the Harmonized Tariff Schedule of the United States (HTSUS)?

27) Daisy’s Dairy Delights wishes to import ice cream. They are a new importer with a limited importing history and the low rate quota for ice cream is closed. They are importing samples, in shipments exceeding 5 kilograms, to determine which flavors they will carry in their line and request you classify it under 2105.00.0500 which references GN 15. They do not have any written approvals or licenses from the Department of Agriculture. The product is of a type subject to tariff-rate quota and is subject to the provisions of Subchapter IV of Chapter 99. Which of the following is NOT a reason this classification can be used?

28) An article composed of two different base metals, with the exception of ferroalloys and master alloys, is classified based on which of the following?

29) What is the tariff classification of a single dinnerware plate that is made of stoneware, measures 15.3 cm in diameter, and is offered for sale in the same pattern as all of the other articles listed in Chapter 69 Additional U.S. Note 6(b), with the aggregate value of all those articles listed in that note being $37?

30) You are reviewing a spec sheet for a cutting machine die which your client continually refers to as ”porcelain ceramic.” According to the specs, the die, which was fired after shaping, has a hardness of 7.1 on the Mohs scale and will absorb .8% of its weight in water. What is the tariff classification for the cutting machine die?

31) What is the tariff classification of Valacyclovir Hydrochloride (CAS 124832-27-5) imported in 500 mg tablets in measured dosage form? Each tablet contains 1 gram of Valacyclovir Hydrochloride mixed with other inactive ingredients (carnauba wax, colloidal silicon dioxide, microcrystalline cellulose and polyethylene glycol). Valacyclovir Hydrochloride is an anti-viral drug used for the treatment of herpes zoster and cold sores. It slows the growth and spread of the herpes virus so that the body can fight off the infection.

32) What is the applicable tariff classification for a heat-and-serve frozen ”loaded hot dog” (beef frankfurter with various toppings) in a bun? The ingredients (by weight) of the complete product are wheat flour (37%), cooked beef sausage (34%), water, chopped onions, pickle relish, mustard, crispy bacon topping bits (4%), yeast, dextrose and spices.

33) What is the tariff classification of a sideguard assembly designed specifically for use in a belt conveyor? The XYZ Company’s glass ornament production line includes machines such as a furnace, a casting machine, a drawing machine, a molding machine, a grinding machine and coating/lamination machines. Many of the machines are interconnected by means of a belt conveyor system.

34) What is the tariff classification of a carbon steel bolt imported together with a corresponding steel nut? The bolt has a hexagonal head and a threaded shank that measures 5.4 mm in diameter and 24 mm in length. It is used exclusively in central heating radiators.

35) What is the tariff classification of a chocolate production line that includes a conveyor belt, a mixer, a cooling tunnel and cutters? The entire chocolate production line will be imported unassembled in one shipment.

36) A U.S. importer sent electronic cigarettes with broken power switches back to China to the original manufacturer for repair. The cigarettes were repaired and returned to the U.S. What is the duty requirement for entering the cigarettes into the U.S.?

37) A welded square tube is made from alloy (not stainless) steel and measures 3 feet in length with a wall thickness of 4 mm. As a result of the welding process, the square tube has a visible seam. What is the tariff classification of the tube?

38) What is the tariff classification for the auto upholstery described below, which is comprised of a polyester/cotton fabric laminated with PVC (Polyvinyl Chloride)?

39) What is the tariff classification of food grade, stainless steel, 12 gallon (45 liter) tanks used for home beer brewing? These tanks are not fitted with mechanical or thermal equipment.

40) ABC Inc., purchases 10,000 glass vases from Overseas Trading Company. The wholesale price charged by overseas trading Company is $3 per vase with the following volume discounts. What is the transaction value for the vases?

41) A used mold was provided free of charge to a Korean manufacturer by the U.S. importer. The used mold cost the importer $75,000 prior to sending it to Korea. Because of its poor condition, the importer had it repaired for $2,500 before shipping the mold to Korea. The importer paid freight cost of $1,000 and the Korean manufacturer paid $500 import duty for the mold. What is the total value of the assist?

42) Which of the following describes what elements may be considered for an article produced in a beneficiary country to qualify for preferential tariff treatment under the Generalized System of Preferences?

43) Which of the following is NOT an addition to the price actually paid or payable?

44) A shipment is invoiced at $100,000. The price for the merchandise includes international shipment costs, insurance costs, customs duties, and other federal taxes. The ocean freight paid is $6,000, the insurance paid is $850, the Duty rate is 6.5%, and a Harbour Maintenance Fee and Merchandise Processing Fee are paid at .125% and .3463%, respectively. What is the Transaction Value of the shipment?

45) Under the Korea Free Trade Agreement, who has primary responsibility to insure compliance on a Preferential Tariff Treatment claim?

46) Which Free Trade Agreements (FTAs) examine whether a good is substantially transformed in order to determine whether it qualifies for preferential tariff treatment?

47) When importing goods into the U.S., and preferential tariff treatment is claimed under the U.S. Morocco Free Trade Agreement (MFTA), which General Note and Authority are applicable to that program?

48) Where in the HTS can the general ”NAFTA Change in Tariff Classification Rules” be located?

49) CBP issued a Request for Information to an importer for a valid NAFTA Certificate of Origin for an entry in which a duty free claim under the NAFTA was made. The importer failed to produce the Certificate of Origin. Which of the following is true concerning possible penalty action by CBP?

50) The Certificate of Origin must be in the importer’s possession at the time of entry when making a ________ claim.

51) Which of the following is NOT a type of drawback entry?

52) Based on the information below, what is the claimed amount for the merchandise processing fee (MPF) on an Unused Direct Identification 1313(j)(1) drawback claim?

Imported merchandise:

Exported merchandise for drawback purposes:

53) Merchandise processing fees are only subject to drawback for merchandise processing fees for ________________.

54) Which CBP form is required to request a drawback claim?

55) Company A imported seven ball bearings with integral shafts from Germany, which are classified under subheading 8482.10.10, Harmonized Tariff Schedule of the United States, at a 2.4% ad valorem duty rate and 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%. What are the total amount of fees and estimated duties that should be reported on CBP Form 7501?

56) 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 has instructed CBP to collect antidumping duty cash deposits at a rate of 115% for all shipments of taper roller bearings manufactured by Beijin Bearings. The Department of Commerce has further instructed CBP to apply the ”country-wide rate” of 45% 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 rate collected for Brown Industries’ shipment of taper roller bearings?

57) A (n) ______is required prior to liquidation of an antidumping/countervailing liquidation order.

58) Mr. Smith contacts your brokerage from the Customs area at the local international airport. He has just flown in from the UK and was attempting to bring in new Scottish 100% wool sweaters to sell at his new store. The sweaters were examined by CBP, and while an appropriate country of origin label was found, Mr. Smith was told that the sweaters were not properly labeled with the fiber content of the material. Which of the following actions should the local CBP cargo office take?

59) Which of the following articles are exempted from country of origin marking requirements, according to the General Exceptions to marking requirements under 19 CFR 134.32?

60) Which of the following are NOT exempt from country of origin marking requirements?

61) Which of the following examples constitutes a substantial transformation for purposes of country of origin marking?

62) A broker is permitted to conduct Customs business in the ports of Las Vegas, Nevada and Los Angeles, California. The licensed individual for the Los Angeles district permit leaves the brokerage. How long does the brokerage have to replace that individual before the district permit can be revoked?

63) When must Form 3347, Declaration of Owner, be filed?

64) A __________ must be presented to CBP to receive a CBP-Assigned Importer identification number.

65) Which part of 19 CFR ____ addresses Inspection, Search and Seizure?

66) How long does a protestant have to file a summons in the Court of International Trade, once the protestant is denied?

67) Disclosure of the circumstances of a violation under 19 USC 1592 means the act of providing to Customs a statement either orally or in writing that:

68) A petition for relief from penalties must be filed within ____ days of the mailing of the notice of penalty incurred.

69) When submitting an Offer in Compromise on behalf of a client to settle a claim for liquidated damages, or a penalty, the broker must also submit ___________.

70) Supplemental petitions filed in cases involving violations of 19 USC sec. 1641 will be forwarded to the Chief, Penalties Branch, Border Security and Trade Compliance Division, Regulations and Rulings, Office of International Trade when the amount exceeds:

71) A petition for the cancellation of a claim for liquidated damages should be submitted to_______________.

72) Entry summary documentation was not filed in a timely manner for a shipment of $100,000 entered with a Single Transaction Bond (STB) in the amount of $110,000. Liquidated damages will be assessed at___________.

73) A broker files an informal entry on CBP Form 368 valued at $2,500 and does not utilize statement processing and ACH. Which of the following actions is the broker required to take?

74) Jack files a temporary importation bond entry in March 2012. In February 2013 he calls Customs to find out if the entry has liquidated. Which of the following is correct?

75) When merchandise is withdrawn from a bonded warehouse, how long must the records relating to the withdrawal be retained?

76) In regard to ”prohibited or restricted importations” relative to ”articles involved in unfair competition,” after the U.S. International Trade Commission (the Commission) issues an exclusion order pursuant to 19 USC 1337, an importer of record has the following option with respect to the entry of merchandise subject to that exclusion order:

77) Imported merchandise has been detained for more than 30 days from the date the merchandise was presented for examination because CBP believes the merchandise may constitute ”prohibited or restricted importations” relative to ”articles involved in unfair competition,” and may be subject to an exclusion order issued by the Commission. Given that CBP failed to make a determination with respect to admissibility within 30 days after the merchandise was presented for examination, the importer may take the following action:

78) If imported merchandise is detained because CBP suspects it bears a counterfeit version of a mark that is registered with the U.S. Patent and Trademark Office and recorded with CBP, and the importer, upon written notification, does not provide information within seven days of such notification that establishes to CBP’s satisfaction that the suspect mark is not counterfeit, or provides information that is insufficient to establish that the suspect mark is not counterfeit, CBP may disclose to the right holder:

79) Gray market articles, bearing a trademark registered with the U.S. Patent and Trademark Office and recorded with CBP, whose importation is restricted by CBP pursuant to regulation on the basis of physical and material differences:

80) A shipment of imported merchandise valued in excess of $50,000 is detained on suspicion that the merchandise bears a suspect version of a federally registered trademark that is recorded with CBP. The importer is notified of the detention and given seven days in which to provide information that would establish that the merchandise does not bear a counterfeit mark. Because no information is provided in a timely manner, CBP provides the owner of the recorded trademark with digital images of the merchandise and its retail packaging, to include images that feature universal product codes that appear on the merchandise. Following receipt of the images, the trademark owner advises CBP that the suspect marks were not applied to the merchandise with authorization. CBP seizes the merchandise on the basis that it bears a counterfeit trademark. Which of the following actions can the importer take to secure the release of the shipment?