Customs Broker License Exams

October 2017

1. Which of the following would NOT be referred to as an “interested party” in proceedings relating to allegations by the public for an investigation regarding the evasion of antidumping and countervailing duty AD/(CVD) orders and procedures by which CBP investigates such claims consistent with the Trade Facilitation and Trade Enforcement Act of 2015 (“TFTEA”)?

2. All of the following information must be included in Federal agency requests for investigations in proceedings relating to allegations by the public for an investigation regarding the evasion of antidumping and countervailing duty (AD/CVD) orders and the procedures by which CBP investigates such claims consistent with the Trade Facilitation and Trade Enforcement Act of 2015 (“TFTEA”), EXCEPT:

3. Big Mouth Bearing Company imported eight 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 $7,134.00. The applicable antidumping duty case deposit rate is 69.88%. What is the total amount of fees and estimated duties that should be reported on CBP Form 7501?

4. A continuous bond, and any associated application required by 19 CFR 113.11, or rider, may be filed up to                  days prior to the effective date requested for the continuous bond or rider.

5. What is the minimum amount of any CBP bond?

6. When a resident of France temporarily imports articles under subheading 9813.00.50, HTSUS, and formal entry is made, the importer of record shall be required to file a bond in what amount?

7. After a new employee has been employed by the broker for 30 consecutive days, the Broker has 10 calendar days to provide CBP with all of the following information, EXCEPT:

8. Which of the following individuals will be granted an exception to the requirements of maintaining records?

9. Who can apply for a National Permit?

10. How often should brokers advise their active clients of their rights to pay duties, taxes, and fees directly to CBP, in writing?

11. What chapter of the Federal Regulations (CFR) sites the basic requirements for a Customs Broker License?

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

13. A separate entry for any portion of a split shipment is required for which of the following:

14. Certain documents required for the entry of merchandise must be maintained by brokers for 5 years and produced to CBP upon reasonable demand. The following documents are subject to this requirement, EXCEPT:

15. What is the CLASSIFICATION of check valves that regulate the flow of hydraulic fluid? The check valves are made of iron and are used in the oil well industry.

16. Roma Sports Company intends to import backpacks into the United States. The backpacks are constructed with a cotton textile base. The textile is coated on one side with polyvinyl chloride (PVC) plastic sheeting. The coating makes up the outermost surface of the backpack. The PVC is embossed to simulate leather. What is the CLASSIFICATION of the backpacks?

17. What is the CLASSIFICATION of a stainless steel bolt imported together with a corresponding stainless steel nut? The bolt has a round head and a threaded shank that measures 5.6 mm in diameter and 27 mm in length. It is used exclusively in central heating radiators.

18. What is required for men’s 100% polyester (synthetic) trousers to be classified as water resistant?

19. What is the CLASSIFICATION of a machine that produces glass fibers? This machine is a highly specialized piece of equipment that operates at elevated temperatures to produce glass fibers using molten glass. Due to the size of the complete machine, it cannot be shipped on a single conveyance. It will enter the United States disassembled and in multiple shipments within 6 days to the Port of Newark. After the components are imported, they will be delivered directly to the customer and will be assembled then.

20. What is the CLASSIFICATION of an unfolded, uncoated, rectangular sheet of gift-type tissue paper containing 30 percent of fibers obtained by a chemi-mechanical process, weighing 27 g/m², measuring 50cm by 80cm, that is colored throughout the mass, and that has been printed with a flower design?

21. What is the CLASSIFICATION of an unadorned basket constructed of woven 6 mm wide plastic strips? The basket measures 10” square by 4” deep and includes an arched handle.

22. What is the CLASSIFICATION of a machine that forms pre-scored paperboard into boxes which are used for packing pharmaceuticals? The machine consists of a conveyer-type feeding section, folding and gluing sections, and a controller.

23. What is the correct CLASSIFICATION for this Light-emitting diode (LED) lamp (bulb)? The lamp or light bulb is described as a shape CA lamp (bulb) that will be used in a chandelier or a ceiling light fixture. It consists of an aluminum screw-in base and has a decorative bent-tip transparent plastic housing (envelope).

24. What is the CLASSIFICATION of an automatic baseball pitching machine that releases five time-delayed balls in succession? The pitching machine is constructed of bright colored plastic and operates using four D batteries, which power the launcher and audible sound that signals when the next ball is coming. The product also includes a hollow yellow plastic bat and five white hollow plastic balls. Additionally, beginners can convert the product into a miniature T-ball set. It is recommended for children aged 3 years and older.

25. What is the CLASSIFICATION of a dinnerware plate that is made of earthenware, measures 27.9 cm in maximum diameter, is valued at 70 cents per plate, and is offered for sale in the same pattern as a soup bowl? No other articles are offered for sale in that same pattern and the soup bowl is not imported in the same shipment as the plate.

26. What is the CLASSIFICATION of a women’s jacket constructed from 80% polyester, 15% cotton, and 5% spandex knitted fabric coated with plastic, which is visible to the naked eye on the inner surface of the shell fabric, and lined with 100% woven polyester fabric?

27. What is the CLASSIFICATION of agglomerated slate facing tiles which measure approximately 15.25 centimeters long by 15.25 centimeters wide by 1.25 cm thick?

28. What is the CLASSIFICATION of women’s trousers constructed from 60% polyester and 40% nylon woven fabric? The pull-on trousers feature a functional drawstring threaded throughout the waistband, on-seam front pockets, and long hemmed leg openings with zipper closures at the ankles.

29. What is the CLASSIFICATION of a hot-rolled, stainless steel sheet imported in coils? The stainless steel sheet measures 750 mm in width and 4 mm in thickness. It is not coated, painted, clad, annealed or pickled.

30. A Notice of Intent to Export, Destroy, or Return Merchandise for Purposes of Drawback on CBP Form 7553 for merchandise that is going to be destroyed, shall be filed by the claimant with the CBP port where the destruction is to take place at least _______ working day(s) prior to the date of intended destruction.

31. Under the provisions for Direct Identification Unused Merchandise Drawback, which party is eligible to claim drawback or issue a waiver of this right to another entity?

32. When can a claimant amend an unliquidated drawback claim?

33. To comply with manufacturing drawback (direct identification and substitution), the use of domestic merchandise taken in exchange for imported merchandise of the same kind and quality shall be treated as use of the imported merchandise if no certificate of delivery is issued covering the transfer of the imported merchandise. This provision is known as a/an:

34. An entry of merchandise is made on January 23, 2017. If the entry is not liquidated
within                        , it will be deemed liquidated by operation of law at the rate of duty, value, quantity, and amount of duties asserted by the importer of record.

35. The A.T.A. carnet is an international Customs document issued in conformity of the Customs Convention on the A.T.A. carnet for the Temporary Admission of Goods. An A.T.A. carnet may be used to temporarily import certain goods, duty-free. How long are A.T.A carnets valid?

36. Which of the following U.S. Government Agencies administer the regulations regarding economic and trade sanctions?

37. Which of the following parties does NOT have the right to make entry?

38. Which of the following is an example of bulk cargo?

39. Which of the following is NOT a method of control for the unlading and measurement of petroleum and petroleum products imported in bulk by vessel, truck, railroad car, pipeline, or other carrier?

40. Importations of switchblade knives is permissible by 15 U.S.C 1244 if:

41. Are corpses subject to the provisions of the Harmonized Tariff Schedule of the United States (HTSUS) and therefore required to be entered?

42. 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 Customs of merchandise for which entry has not been made?

43. ABC Corp entered Japanese-manufactured construction equipment into the U.S. in March 2011. At the time, all applicable duties, taxes and fees were paid. In 2014, ABC Corp won a contract to construct a U.S. military facility overseas. ABC Corp sent the equipment overseas in January 2015. It is now being returned to the U.S. Which of the following is TRUE?

44. Which section of the CFR determines when a petition for relief for liquidated damages and penalties should be filed with CBP, Fines, Penalties and Forfeitures Office?

45. Which of the following information is required in every protest?

46. According to , CBP issues a notice for liquidated damages when there is a failure to meet the condition of any bond posted with CBP or for a penalty violation which is secured by a CBP bond.

47. In accordance with 19 C.F.R. 162.74 (prior disclosure), a complete “disclosure of the circumstances of a violation” includes which of the following sets of factual elements?

48. Which statement is NOT correct regarding an offer in compromise submitted pursuant to 19 U.S.C. 1617?

49. The following trade preference programs provide the merchandise processing fee (MPF) exemption, upon importation into the United States, to products of a beneficiary country even without a claim for preferential treatment. Choose the best answer applicable.

50. In our free trade agreements, the following list of materials is an example of: Fuel and energy Tools, dies and molds Spare parts and materials used in the maintenance of equipment or buildings Lubricants, greases and compounding materials Gloves, footwear, safety equipment and supplies Testing or inspection equipment, catalysts, etc.

51. Which free trade agreements take the NAFTA Marking Rules?

52. Under what free trade agreement can certain third-country goods originate, and thus be eligible for preferential tariff treatment upon importation into the United States (U.S.) merely for having been entered into the commerce of an FTA Party and then been subsequently imported into the U.S.?

53. Which of the following free trade agreements have a remanufacturing provision enabling certain non-originating third-country goods to be disassembled, cleaned, inspected and processed to bring into sound working condition as “recovered goods” and that such “recovered goods” are then considered originating materials when processed into a “remanufactured good”.

54. CBP Form                      must be presented to CBP timely to request a manipulation of freight to remove a prohibited item. Subsequently, in order to get the prohibited item exported, CBP Form                      _ must be presented to CBP.

55. 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.

56. A Class 11 warehouse is a(n):

57. Which statement is TRUE?

58. 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?

59. Which importation data element is CBP NOT permitted to disclose to the owner of a mark during the examination of articles suspected of bearing counterfeit marks?

60. When merchandise is seized, CBP will disclose to the owner of the mark the following comprehensive importation information, if available, within 30 business days from the date of the notice of the seizure, EXCEPT:

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

62. What statement is FALSE?

63. Goods determined to be “restricted gray market”:

64. CBP Form from the port director shall notify the importer of articles or containers that are found upon examination not to be legally marked.

65. When an Importer submits a Repacking Statement (Certificate of Marking by Importer- Repacked Articles Subject to Marking) to CBP, they are certifying that the imported article                                        :

66. Every article of foreign origin imported into the US shall be marked according to the following conditions, EXCEPT:

67. A-Z Corp imported a shipment of tote bags from China. These bags will be sold in A-Z Corp’s stores throughout the U.S. The entry was covered by a continuous bond for basic importation and entry. CBP discovered that half of the shipment was not properly marked with the country of origin and released it conditionally. What will happen if after Customs Form 4647 is issued, A-Z Corp fails to properly mark or to return to CBP custody for marking, exportation, or destruction?

68. Which of the following principal types of power of attorney are limited to a period not to exceed 2 years from the date of execution?

69. When may a power of attorney be revoked?

70. CBP Form                      may be used for giving power of attorney to transact Customs business.

71. Which person or entity may act as the intended importer of record?

72. Based on the information provided for POA 1, which statement is TRUE?

73. Based on the information provided for POA 2, which statement is FALSE?

74. Upon review of both POAs, which statement is FALSE?

75. The Customs broker shall retain POA 2 for a period of 5 years starting on                       .

76. If the port director believes that the entered rate or value of any merchandise is too low, or if he finds that the quantity imported exceeds the entered quantity, and the estimated aggregate of the increase in duties on that entry exceeds $15, he shall promptly notify the importer on Customs Form 29, or its electronic equivalent, specifying the nature of the difference on the notice. Liquidation shall be made promptly and shall not be withheld for a period of more than                                       days from the date of mailing such notice unless in the judgment of the port director there are compelling reasons that would warrant such action.

77. A used mold was provided free of charge to a Korean manufacturer by the U.S. importer. The used mold cost the importer $85,000 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?

78. ABC Inc. purchases 10,000 glass vases from Overseas Trading Company. The wholesale price charged by Overseas Trading Company is $3.00 per vase with the following volume discounts: 1 – 1,000 vases full price 1,001 – 5,000 vases 5% discount 5,001 – 15,000 vases 10% discount 15,001 – 25,000 vases 15% discount ABC Inc. receives the shipment and finds that 100 of the vases are broken. They contact Overseas Trading Company, who agrees not to charge ABC Inc. for the broken vases. What is the transaction value for the vases?

79. Merchandise imported into the United States may be appraised according to:

80. Which statement is TRUE?