Customs Broker License Exams

April 2016

Please use the table below to answer questions 1-3.

1) In Block 2, ”Entry Type”, what does ABI/P represent?

Please use the table below to answer questions 1-3.

2) In ”Other Fee Summary for Block 39”, what is the collection code for Antidumping Duties?

Please use the table below to answer questions 1-3.

3) If refunds, bills, or notices of extension or suspension of liquidation are sent to an individual or firm other than the importer of record, which block would be used to record the IRS, EIN, SSN, or CBP assigned number?

4) What form is used for giving power of attorney to transact Customs business?

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

6) A Customs Power of Attorney issued by a partnership shall be limited to _____ year(s).

7) Absolute quota merchandise imported in excess of the admissible quantity may NOT be___________________.

8) A work of fine art arrived at the Port of Miami and was admitted temporarily into the United States under chapter 98, subchapter XIII of the Harmonized Tariff Schedule of the United States. Eleven months later, the importer wants the work of art to remain in the United States under Chapter 98, Subchapter XIII for eight additional months and to be exported from the Port of Boston. What course of action should the importer take?

9) For merchandise entered under any temporary monthly entry program established by CBP before July 1, 1989, for the purpose of testing entry processing improvements, provided that those importations involve the same importer and exporter, the fee for processing merchandise for each day’s importations at an individual port will be the lesser of the 0.3464 percent ad valorem merchandise processing fee and:

10) Bills resulting from dishonored checks or dishonored Automated Clearinghouse (ACH) transactions are due ______________.

11) A prospective participant interested in transmitting data electronically through the Automated Broker Interface (ABI) must submit which of the following documents to CBP?

12) Any person, whose protest has been denied, in whole or in part, may contest the denial by _____________.

13) What is the timeframe to submit the adjusted summary along with payment of duties, taxes and fees once the quota has gone on hold and Headquarters has authorized release of merchandise?

14) Which of the following circumstances requires a separate entry for any portion of a split shipment?

15) Dutiable merchandise imported and afterwards exported, even though duty thereon may have been paid on the first importation, is liable to duty on every subsequent importation into the Customs territory of the United States, EXCEPT:

16) What is the Shipping/Packaging Unit Code for Bulk Liquid?

17) What is the correct entry type code to be entered on an entry summary filed for Foreign Trade Zone (FTZ) consumption merchandise?

18) Prior to any action within a Foreign Trade Zone (FTZ), the operator shall file with the port director an application for permission to manipulate, manufacture, exhibit, or destroy merchandise. Which Customs Form is used for that purpose?

19) XYZ Corp. operates a manufacturing facility within a Foreign Trade Zone (FTZ). XYZ Corp. manufactures bottles using raw materials imported from Asia and admitted into the FTZ as non-privileged foreign merchandise on a Form 214. The finished bottles are then sold and delivered daily to U.S. beverage companies. Which of the following is true?

20) On November 15, 2015, a shipment of t-shirts enters an FTZ, and does not undergo any manipulation or manufacturing while in the FTZ. On April 20, 2016, the owner of the tshirts decides to enter 5,000 of them for sale at the local swap meet. Which form is required to enter the t-shirts?

21) Which of the following products is NOT covered in Chapter 26: Ores, Slag & Ash?

22) Which of the following rules does NOT apply if merchandise is entered duty free into the U.S. under Harmonized Tariff Schedule of the United States (HTSUS) number 9802.00.5010 or 9802.00.8040?

23) Textile or apparel product is any good classifiable in Chapters 50 through 63 of the Harmonized Tariff Schedule of the United States (HTSUS), and any good classifiable under which one of the following HTSUS headings or subheadings?

24) What is the classification for the 10th copy of a bronze statue cast from an original mold created twenty (20) years after the original artist has died?

25) The Miami Sound Machine music store is importing cellos from a manufacturer in Spain for a client in Orlando, FL. Included in the shipment are forty of each of the following: cellos, black and red cello cases, and bows. The store will sell each cello, case, and bow as a unit to the Florida client. Which of the following statements describes how these items will be classified?

26) A clothing set for a child measures 85 centimeters, consists of a 100 percent cotton woven dress, and coordinates 100 percent cotton knit diaper cover. The items are imported together, presented as a set, and intended to be worn together by the same person. What is (are) the classification(s) for this clothing set?

27) For the purposes of subheading 2601.11.0060, the term ”coarse” refers to iron ores with a majority of individual particles having a diameter ______________.

28) Bitrex, also known as Denatonium Benzoate, is an aromatic, cyclic amide indicated for use as a denaturant and bittering agent. It is imported from Singapore and classified in HTS 2924.29.7100. The importer has provided the Chemical Abstract Service (CAS) number, 3734-33-6, and certified that it is not listed in the Chemical Appendix to the Tariff Schedule. What is the rate of duty for Bitrex?

29) What is the classification for 48 hair combs, worn in the hair, made of silver (a precious metal), valued at $22 per dozen pieces?

30) What is the classification of a woman’s 70% rayon (artificial) / 30% wool knit suit comprised of a divided skirt and a suit coat? The skirt and suit coat are of the same fabric construction, color, composition, style and size.

31) What is the classification for leather golf bags?

32) A pneumatic handheld impact riveter is imported by a civil aircraft manufacturer in Philadelphia. The riveter is specially designed and is used for attaching metal sheeting on aircraft. What is the classification of the riveter?

33) ABC Steel purchased carbon steel bars from a manufacturer in Ontario, Canada. ABC Steel paid $19,000, ex-factory, in Canadian dollars. The steel bars arrived at the Detroit Port of Entry via semi-tractor trailer on 5/6/2015, and the shipment was released the same day. The applicable currency exchange rate is .793021. The invoice price does not include duty at 2.9%, merchandising processing fee at .3464%, or freight charges of $1,628. What is the entered value of this shipment?

34) What is the amount of duties and fees for goods entered in the U.S. for a shipment with the following characteristics? ? Contains seven (7) 31mm ball bearings with integral shafts ? Is manufactured by XYZ Company from Germany with a value of $7,598.00. ? Has an applicable anti-dumping duty deposit rate is 68.89%, HTS 8482.10.1080 @2.4% duty rate and MPF.3464%

35) Which of the following individuals is NOT considered when determining a related party transaction, as defined in the Tariff Act of 1930?

36) Which of the following is an exclusion from transaction value?

37) The foreign commercial invoice before you shows a value of $7200 with an addition of $800 for ”distributor fee”, or a total invoice value of $8000. The nature of the fee charged by the seller was to compensate the exclusive U. S. distributor who, by agreement with the foreign seller, receives 10% of all sales in the U. S. as a commission. They receive this regardless of whether or not they actually make the sale. What is the $800?

38) A U.S. television manufacturer contracts with a manufacturer in China to produce 500 bare printed circuit boards at a cost of $50 per board. The U.S. television manufacturer also contracts with a design company in New York to prepare the schematics for use in the production of the bare printed circuit boards at a cost of $20,000. Upon completion, the bare printed circuit boards are exported from China to Malaysia for further processing into printed circuit board assemblies for televisions at a cost of $200 per assembly. The completed printed circuit board assemblies are shipped to the U.S. television manufacturer and an invoice from the Malaysia manufacturer in the amount of $100,000 is included in the shipment at the time of importation. What is the transaction value of this shipment?

39) Which of the following elements determine whether a particular good qualifies under the Generalized System of Preferences (GSP) value content requirement?

40) A Merchandise Processing Fee (MPF) is exempt for originating goods from which Free Trade Agreement listed below?

41) Where no claim for preferential treatment under the North American Free Trade Agreement was made at the time of importation, an importer may file a claim for preferential treatment under NAFTA within ________.

42) The NAFTA Certificate of Origin must be retained in the _____.

43) When an importer is making a claim of preferential tariff treatment under the United States Australia Free Trade Agreement, the importer indicates their claim on the CBP Form 7501. Which of the following special program indicator should be used?

44) Which of the following is NOT a direct cost of processing operations performed in the beneficiary developing country?

45) Which form must be presented to CBP to request exportation of merchandise that is intended for a rejected merchandise drawback claim?

46) A person may be certified in the drawback compliance program after meeting the core requirements established under this program. In order to be certified as a participant in the drawback compliance program or negotiated alternative drawback compliance program, the party must be able to demonstrate all of the following EXCEPT:

47) The method by which fungible merchandise or articles are identified on the basis of calculation by recordkeeping of the amount of drawback that may be attributed to each unit of merchandise or articles in the inventory. Which of the following approved accounting method is utilized by Customs and Border Protection?

48) Upon review of a drawback claim, if the claim is determined to be incomplete, the claim will be rejected and Customs will notify the filer in writing. The filer shall then have the opportunity to complete the claim subject to the requirement for filing a complete claim within _______________.

49) Which of the following parties does NOT have authority to sign drawback documents?

50) Qualifying expenditures which may be offset by a distribution of assessed antidumping and countervailing duties must fall within the categories described below with the exception of? ”These expenditures must be incurred after the issuance, and prior to the termination, of the antidumping duty order or finding or countervailing duty order under which the distribution is sought. Further, these expenditures must be related to the production of the same product that is the subject of the related order or finding, with the exception of expenses incurred by associations which must relate to a specific case.”

51) Which entry types(s) may be used for merchandise subject to antidumping/countervailing duties (AD/CVD)?

52) ___________ is required prior to liquidation of an entry subject to an antidumping/countervailing duty order or those duties will be doubled upon liquidation.

53) Which of the following parties CANNOT request a county-of-origin advisory ruling or final determination?

54) How many days does CBP have before it is required to notify the importer that it is detaining goods to determine admissibility relative to possible counterfeit trademarks?

55) What is the fee for recording a trademark with CBP for a United States Patent and Trademark Office (USPTO) registration that includes four classes of goods?

56) Which article is NOT exempt from country of origin marking requirements when imported into the United States?

57) Additional duties will be assessed at ____________ for failure to mark the article (or container) to indicate the English name of the country of origin of the article or to include words or symbols required to prevent deception or mistake.

58) The license of a broker that is a corporation or association can be revoked by operation of law if it fails for _____ continuous days to have at least one officer of the corporation or association who holds a valid individual broker license.

59) The negligent failure to produce entry documents required by law or regulation for the entry of merchandise after a lawful demand by CBP, will subject the person who is required to maintain the documents to a penalty, per release of merchandise. What is the maximum penalty?

60) Requests for alternative methods of storage for records, other than those that are required to be maintained as original records under laws and regulations administered by other Federal government agencies, must be made from which of the following offices?

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

62) When a broker is employed for the transaction of customs business by an unlicensed person, who is not the actual importer, the broker must transmit ________________.

63) XYC Brokerage is located in New York. It is permitted to conduct Customs business in the ports of New York, Florida, California, and Alabama. The individual qualifying the permit in New York leaves the brokerage. Which statement is correct?

64) If a broker that is a partnership, association, or corporation fails to have at least one member or officer who holds a valid individual broker’s license during any continuous period of _____________, the license and any permits will be revoked by operation of law.

65) What is the deadline for a Licensed Customs Broker to file a status report?

66) From June 2015 to September 2015, an importer entered five shipments of widgets as consumption entries despite his Customs attorney having advised him the widgets are subject to an antidumping case. In October 2015, CBP determined that the widgets should have been entered as antidumping entries and that the appropriate cash deposit rate for the widgets at the time of entry was 0.00%. Which of the following best describes the culpability of the importer for a penalty under 19 U.S.C. 1592?

67) A prior disclosure must ______.

68) 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. When must the disclosing party make the tender of actual loss of duties, taxes, and fees, or actual loss of revenue?

69) Petition for relief must be filed within _________from the date of mailing to the bond principal the notice of claim for liquidated damages or penalty secured by a bond.

70) An error in the liquidation of an entry covering household or personal effects may be corrected by the port director even though a timely protest was not filed if entry was made before December 18, 2004 and an application for refund is filed with the port director ________________and no waiver of compliance with applicable regulations is involved other than a waiver which the port director has authority to grant. Where the port director has no authority to grant the waiver, the application will be referred to the Commissioner of CBP.

71) If the Fines, Penalties, and Forfeitures Officer has reasonable cause to believe that a violation of section 592, Tariff Act of 1930, as amended (19 U.S.C. 1592), has occurred, and determines that further proceedings are warranted, he shall issue to the person concerned a notice of his intent to issue a claim for a monetary penalty. The prepenalty notice shall be issued whether or not a seizure has been made. The prepenalty notice shall contain all of the below EXCEPT:

72) If the principal gets free release of any serially numbered shipping container classifiable under subheading 9801.00.10 or 9803.00.50, Harmonized Tariff Schedule of the United States (HTSUS), the principal agrees to all of the following EXCEPT:

73) With regards to the disposition of merchandise on a basic custodial bond, the principal agrees to all of the following EXCEPT:

74) The principal agrees to comply with all Importer Security Filing requirements set forth in part 149 of this chapter, including but not limited to, providing security filing information to Customs and Border Protection in the manner and in the time period prescribed by regulation. If the principal defaults with regard to any obligation, the principal and surety (jointly and severally) must pay liquidated damages of _______ for each violation.

75) A bond is not required on an importation of a vehicle when:

76) Too Loud Audio imported three speakers as samples for use in taking orders under a Temporary Importation Bond (TIB) on June 1, 2012, subheading classification 9813.00.20. They have extended the expiration period by two one-year time periods. In May, 2015 the broker notifies the importer that the TIB is about to reach its expiration date. The importer has indicated that it will not be able to export or destroy the speakers by the TIB’s expiration date. What is the importer’s best option?

77) Which of the following is NOT provided for in 19 CFR 133 to dispose of merchandise seized for infringement of a trademark recorded with U.S. Customs and Border Protection?

78) If a violation of the trademark or copyright laws is not discovered until after entry and deposit of estimated duty, the entry shall be endorsed with an appropriate notation and the duty refunded as an erroneous collection upon exportation or destruction of the prohibited articles in accordance with ________________of this chapter.

79) Which of the following is appropriate to challenge the seizure of merchandise for a violation of 19 USC 1526(e), as implemented by 19 CFR 133.21(d)?

80) Which of the following is TRUE with respect to imported merchandise after the U.S. International Trade Commission (ITC) finds a violation of section 337 of the Tariff Act (19 USC 1337) and issues an exclusion order, as implemented by CBP under 19 CFR 12.39?