Broker Compliance

A customs broker has a client's confidential records as defined in CBP regulations pertaining to customs brokers. The records contain information that is not available from a source that is open to the public. The broker's client has specified in writing that the records should be kept confidential. Of those persons listed below, to whom may the broker disclose the confidential records?

A customs broker recently imported merchandise into the customs territory of the United States and transmitted the entry records for this merchandise to CBP. If copies of these entry records are retained by CBP, which of the following statements is TRUE?

John and Fred Smith each had a 25% ownership share of a general partnership, JJF, with their father, Jack Smith, owning the other 50%. Three weeks ago, JJF had sent ABC Customhouse Brokers (ABC) a copy of the bill of lading, a commercial invoice, and a packing list for their incoming shipment. JJF, a longtime client of ABC, had executed a new customs power of attorney (POA) signed by Jack Smith one month ago. However, John Smith advised ABC that his father, Jack Smith, died last week, with JJF changing by operation of law into Smith & Smith, a new partnership that inherited JJF's legal rights and responsibilities. ABC states that they cannot proceed with the customs clearance on Smith & Smith's behalf without a newly executed POA. Which regulation explains why the existing POA is no longer valid?

For which company below will the customs broker be required to obtain documentation establishing the authority of the grantor to execute a power of attorney?

Which of the following would NOT constitute grounds sufficient to deny an application for a customs broker's license?

Which of the following is considered "customs business?"

A licensed broker must report or provide the following to CBP EXCEPT:

In accordance with the relevant regulation in Part 111 of 19 CFR, if a customs broker discovers a breach of electronic or physical records relating to the broker's customs business, the broker must electronically notify _____ within 72 hours of the discovery of the breach.

Forty-two days ago, a customs broker knowingly hired a person convicted of a felony. At no point has the customs broker sought approval for this hire from CBP. Additionally, CBP is not aware of this hire. As of today, what is the heaviest single maximum penalty that can be assessed by CBP against this broker for not seeking approval from the appropriate Executive Director, Office of Trade for the felon's continued employment?

Sixty-one days ago, an authorized CBP official properly demanded that a broker, who was acting as importer for a released shipment and is also the bond principal, redeliver to CBP custody the merchandise from that shipment. The merchandise was not legally marked with its country of origin for the purpose of requiring the merchandise to be properly marked. In the meantime, the broker has taken no action, and the Center director did not give a good cause extension. CBP has now demanded liquidated damages in an amount equal to the entered value of the shipment. The broker wants relief from full payment. Which of the following is therefore legally TRUE?

Which of the following is a TRUE statement regarding decisions to remit or mitigate a penalty or cancel a claim for liquidated damages upon payment of a lesser amount?

A customs broker receives payment for duties from a client after the due date. The payment did not include payment for the broker's services. What must the broker do?

Which of the following statements is legally TRUE regarding a customs broker conducting "customs business?"

Which of the following is NOT legally required for a partnership broker to file entry and entry summary for commercial merchandise on behalf of an importer of record?

A freight forwarder is referring an import client to a customs broker with an expectation of receiving a referral fee. Which ONE of the following statements is legally TRUE with respect to their relationship?

Which ONE constitutes an impermissible "misuse of license or permit"?

AA Customs Brokers Inc. has a corporate license and national permit. Tom, the permit qualifier, resigned. What is the maximum number of days to find a new qualifier to avoid revocation?

By what date must the initial petition for relief be filed in a seizure and penalty case?

What are the requirements for CBP to consider an offer in compromise under the Tariff Act of 1930?

Which of the following is NOT required to be maintained by the broker as evidence of continuing broker education?

Which of the following must certify completion of continuing broker education with the triennial status report? i. Individual brokers ii. Partnerships iii. Associations iv. Corporations

ZX Customs Brokers Inc. has George Forest as its permit qualifier. The company voluntarily suspended its license for one year. Jayne Smythe is a licensed broker but not an officer. Which statement is FALSE?

Suzy Smith applies for a national permit and has provided items 1 through 7. What additional material is needed?

When a protest is filed by an agent who is not an attorney or customs broker, what document is needed?

The Department of Defense hires a broker for an armor import and states that a power of attorney is not required. Which is TRUE?

Which party must maintain records for CBP inspection?

Records of warehouse withdrawal must be retained for how many years?

Which of the following is mandatory for responsible supervision and control?

Employee Andrew Balder wants to import dress jackets similar to a client's. Which is CORRECT?

"_____ means activity by a business entity to ensure that documents are prepared with reasonable care, but not the actual preparation or filing of those documents."

A broker completed a continuing education course on April 15, 2027, and certified completion with the triennial status report filed February 1, 2030. How long must the broker maintain the record?

Upon CBP request, the broker must make continuing education information available on or before _____.

Joe Slacker completed 8 hours of the 20 hours required and failed to report correctly. What must he do?

What is the penalty for a person who intentionally transacts customs business without a license?

Ms. Smith is the broker for American Widgets. What additional action is required for billing?

Which ONE permit constitutes sufficient permit authority for a customs broker to conduct customs business within the customs territory of the U.S.?

Who must exercise responsible supervision and control over the customs business of an association or corporation broker?

Shady CHB discovers that its client Angel uses double invoices — a lower-value invoice for insurance and a higher-value invoice for customs entry. Shady's attorney advises terminating Angel. What is the best next step?

An individual's broker license has been suspended for failure to file a triennial status report. When will the license be revoked if the individual fails to file?

____ must be set forth in or attached to an application for a new national permit regarding responsible supervision and control.

What is the maximum number of calendar days for a recordkeeping contact to make records available when no additional time is specified?

A broker is served a CBP summons for 10 entries. The client was terminated 10 months ago and the POA has been revoked. How should the broker respond?

An LLC surrenders its organizational license. Who must notify CBP of the party with custody of records?

Other than the owner or purchaser, who can sign or certify electronic entry transmissions?

The grantor is a limited partnership importing textiles and also has a POA with a freight forwarder. Which statement is FALSE?

Which limitation in a limited POA would NOT be permitted?

Sam Sly's license was revoked for triennial filing failure. CBP discovers Sam conducting freelance customs business and assesses a $10,000 penalty. Will CBP mitigate?

A penalty has been assessed with less than 180 days before the statute of limitations. What is the minimum filing period the FPF Officer must provide?

Which merchandise is subject to mandatory seizure under 19 USC 1595a(c)?

What is the maximum penalty for broker violation(s) of 19 USC 1641 in one notice?

Which of the following statements is FALSE?

Number One Car Company (NOC Co.) is an existing importer adopting an alternate name. Which correctly states a method the broker Jack Frost can use to notify CBP?

ZXY is terminating its relationship with Slick brokerage. The power of attorney was granted for an unlimited time. Who may revoke the power of attorney?

Which accurately reflects the duration limitations for powers of attorney?

A broker is switching from paper to digital records. From whom must permission be received and within what time frame?

Which is TRUE regarding the record retention period?

A broker license applicant has been denied. What is the next action to initiate an appeal?

Which scenario demonstrates a broker may have failed to maintain responsible supervision and control?

A broker failed to file the triennial status report and the license was suspended. What must the broker do to get reinstated?

Which is TRUE about national permit applications for organizations?

Regarding CBP SOC breach notification, what must a broker do for a breach of physical records?

Which of the following statements is FALSE?

What is NOT required for a corporation to file entry/entry summary for commercial merchandise on behalf of others?

When is a power of attorney required for filing a protest?

John Rose (a customs broker) and his client Shady are importing 18 diamonds worth $45,000 in luggage from London. Rose advises Shady that no declaration is needed. Which is TRUE about the penalties?

Who has the duty to exercise responsible supervision and control over an employee who has been granted authority by the broker?

Which of the following is NOT listed in 19 CFR 111.91(a) as grounds for a monetary penalty against a broker?

The regulations define “customs business” as which of the following?

How many characters are in a unique filer code?

For purposes of reporting an ownership change, “principal” means a person with at least what percentage interest?

What is the maximum time a broker has to replace a terminated qualifying officer before the license may be revoked for failure to maintain a qualifying officer?

What is the maximum time John Smith has to report to CBP that he was terminated as a qualifying officer?

A nonresident importer has authorized special address notification. Which action violates 19 CFR 111.41?

What is the maximum civil penalty for a single violation of conducting customs business without the required customs broker license?

A licensed customs broker must designate which person as the primary contact concerning recordkeeping requirements?

Which of the following is NOT an example of exercising due diligence in broker correspondence and payment practices?

Within how many days must a customs broker seek CBP approval before employing a person who has been convicted of a felony?

Newly licensed broker Pat Smith: license effective August 1, 2022; national permit issued December 19, 2022. When is the next status report due and what is the fee?

After passing the Customs Broker License Examination (CBLE), within what period must an applicant generally apply for a broker license?

An examinee was born October 12, 2004. They took the CBLE on October 26, 2022, received notice of passing on November 10, 2022, and application instructions on December 1, 2022. What is the earliest date they may apply for a license?

Within how many working days after the due date must a customs broker transmit payment to CBP when payment is required?

Generally, how many years after the date of entry or final withdrawal for a warehouse entry must the broker retain the records?

Under 19 CFR 111.24, to which entity is a broker NOT permitted to disclose confidential records?

Where in the regulations would you find the (a)(1)(A) list?

Licensed broker was served Customs summons signed by Center Director requiring entry files for 10 entries prepared for Company Z within last 3 years. Broker terminated Company Z as client 1 year ago. Company Z provided no written instructions regarding summons. How must broker respond?

Broker filed entry for Irish tea. In addition to Customs Documents, which PGA forms must be filed and retained?

Which is NOT a factor CBP considers in deciding whether a broker has exercised responsible supervision and control over unlicensed employees?

IOR contacts broker to revise entry 123-1234567-8 because internal audit revealed omitted invoice. Goods qualify under CAFTA-DR from Dominican Republic. No change in duties/taxes/fees. Entry not liquidated, fully paid, less than 1 year since import. Which process should be used?

Under what circumstances may a licensed broker accept fees from an attorney?

In solicitation, promotion, or performance of customs business, who may a broker allow to use their license, permit, or name?

Who is responsible for paying the annual user fee per Part 111?

What must a corporate broker do to continue customs business after the qualifying license officer retires?

A broker must notify Customs of all the following EXCEPT:

Under what circumstances may a Customs broker employ a convicted felon or former broker whose license was cancelled with prejudice?

Broker Blue is US corporation owned by Canadian Customs Broker Maple. Broker Blue files entries for Maple's clients, invoices reflect Maple as bill-to party, Maple pays Broker Blue then invoices clients for both services. What regulation is being violated?

Jane works for Broker D. Jane failed to get CBP Form 7553 signed before destruction of merchandise for drawback. Jane gives CBP Officer Smith a backstage concert pass and asks him to sign a backdated Form 7553. What liability does Broker D have?

Examples of unauthorized business relationships EXCEPT:

Ms. Thomas (individually licensed broker) resigns as VP. Within how many days must Jacobs & Robinson CHB employ a new licensed broker as officer before license revocation?

Brokers may form separate company for ancillary services. Who may NOT access confidential client records?

Under which scenario can broker bill FF for duties without sending copy to importer?

How long must broker retain records for warehouse withdrawal from date of last withdrawal?

Which is NOT considered customs business?

How long does the filer have to retransmit an entry rejected by CBP for an antidumping/countervailing duty (AD/CVD) issue?

Every three years, brokers must file a Triennial Status Report by February. Failure to file results in:

A person paying by returned check (dishonored) is assessed a charge of ___ unless not at fault.

Which of the following is NOT among the basic requirements for an individual customs broker’s license?

Under what 19 CFR section is the fee for an application for carrier/forwarder bonded merchandise transportation?

Which factor is NOT always considered by CBP when measuring responsible supervision and control?

Which statement regarding customs broker conduct is FALSE?

Juan Hembra is a broker at ABC Brokers and owns Hembra Hats (imports and sells Panama hats from Ecuador). Which situation creates a conflict of interest?

At what value is a mail shipment REQUIRED to be formally entered?

When should an in-bond application be submitted?

A customs broker permit application must include information about each employee EXCEPT:

When is a customs broker license REQUIRED?

Which statement is NOT subject to grounds for suspension or revocation of a broker license?

Which statement is FALSE? (1) New employee information must be submitted after 30 days. (2) 120 days to replace a licensed officer. (3) CBP will not hold the broker responsible for accuracy of employee-provided information. (4) Financial settlements with clients within 7 working days. (5) Broker must transmit a copy of the entry to the actual importer.

All of the following are true EXCEPT:

What is a customs broker required to have in order to conduct customs business on behalf of others?

John Henry, licensed customs broker, has permit in Chicago, wants national permit. Has provided: 1) License number/date, 2) Address/phone of office of record, 3) Name/license/office/phone of supervising broker. What else needed?

Bills resulting from dishonored ACH transactions are due within ___ days.

Andrew Balder, employee of PM Morris Customs Brokerage (MCB), wants to import dual color lapel men's dress jackets. Client of MCB regularly imports comparable dress jackets. Which statement is CORRECT?

Which is NOT "Customs Business"?

How many days to file appeal of exam failure?

Which statement is FALSE?

Which time frame is INCORRECT?

A broker holds a license/permit in Miami, ceases business there, and opens in Tampa. Which of the following is INCORRECT?

What is the maximum continuous period a partnership, association, or corporation may operate without a licensed member before the license is revoked by operation of law?

For a new employee, the broker must submit written information within ___ after the employee has been employed for 30 consecutive days.

An examinee has ___ to file an appeal of a failing grade.

A permit application must include all of the following EXCEPT:

Records pertaining to bonded merchandise must be retained by the proprietor for ___ after final withdrawal.

Which of the following is TRUE regarding record-keeping? (Select all that apply.)

When a customs broker submits written information regarding a new employee to CBP under 19 CFR 111.28(b), which of the following is NOT required to be included?

A licensed customs broker who fails to notify CBP in writing that a new qualifying member has replaced a former qualifying member within the period prescribed in the regulations may be subject to sanctions. That period is:

For a new employee, the broker must submit the written information required by 19 CFR 111.28(b) within ___ after the employee has been employed for 30 consecutive calendar days.

Which statement best describes the Triennial Status Report fee for an individual customs broker under 19 CFR 111.30(d)?

Under 19 CFR Parts 111 and 112, which of the following activities is NOT required to be performed by a licensed customs broker?

Under 19 CFR 24.3(e), when must an importer deposit estimated duties, taxes, and fees after filing a reconciliation entry that is not filed pre-import?

Which statement regarding a corporation that holds a customs broker license is FALSE?

Under Appendix C to Part 171, Section XI(B), which of the following is NOT listed as a factor that may be considered in determining whether a violation is negligent?