U.S. Customs Broker License Examination (CBLE), Practice Exams

Which of the following statements is FALSE?

1. Only customs brokers who have been approved for a National Permit are required to pay the annual user fee every year.
2. All customs brokers are required to file the triennial status report and pay the associated fee every three years after 1985.
3. Every applicant for a customs broker's license must pay an application fee, the amount of which is based upon whether the applicant is an individual, a partnership, an association, or a corporation.
4. All customs brokers are required to file an annual status report and pay the annual user fee every year after 1985. ✓

Why: 19 CFR 111.96 sets three distinct fees: a license application fee under (a) ($300 individual / $500 partnership, association, or corporation), an annual permit user fee under (c) tied to a national permit, and a $100 triennial status report fee under (d) supporting the report required by 19 CFR 111.30(d)(1). The false statement is the one describing an *annual* status report and annual user fee for *all* brokers every year after 1985 - the status report is triennial, and only national permit holders owe the annual permit user fee. The other three options each restate 111.96(a), (c), or the triennial reporting scheme accurately.

An importer imports cartons, uses them to repackage merchandise, and destroys the packaged merchandise under CBP supervision in support of a claim under 19 U.S.C. 1313(j)(1). Under 19 CFR 190.13, how is the amount of drawback payable on the imported cartons determined?

1. At a flat 99 percent of the duties paid on the cartons, without regard to the goods
2. Under the substitution rules of 19 U.S.C. 1313(b) applicable to manufactured articles
3. Only if the packaged goods are themselves eligible for drawback under the claim
4. Under the drawback provision to which the packaged goods themselves are subject ✓

Why: Imported packaging material is covered by 19 CFR 190.13(a), which provides drawback under 19 U.S.C. 1313(q)(1) on material used to package or repackage merchandise exported or destroyed under 19 U.S.C. 1313(a), (b), (c), or (j), and states that the amount payable on the packaging material is determined pursuant to the particular drawback provision to which the packaged goods themselves are subject. The packaging must also be separately identified on the claim. The eligibility-of-contents language that makes the third option tempting comes from 19 CFR 190.13(b), which was re-read here and which speaks only to domestically manufactured packaging under 19 U.S.C. 1313(q)(2).

NOTE: As in the real world where client documents may contain errors, the practical exercise documents may contain errors. Examinees should review the documentation carefully and identify any errors. Any errors in the documentation should be taken into account when selecting an answer FACTS: Baltimore Quick Printers of Baltimore, Maryland (BQ Printers) ordered a Luxemburg Digital Press (press) from manufacturer Stampa Fabbrica of Genoa, Italy (Stampa), an unrelated party. The contract price for the machine is $80,000.00. Italy is in the Euro Zone. Stampa will prepay international freight and insurance and invoice BQ Printers on a C.I.F. (cost, insurance, freight) basis. Although the press was on backorder at the time it was ordered, Stampa promised the next available press would be shipped to BQ Printers. On January 6, 2025, Stampa shipped a press to a purchaser in Beijing, China, but the purchaser declined to accept the shipment claiming that it was late. On January 7, 2025, Stampa contacted BQ Printers by email to confirm their order and notify them that a press was now available. The email also explained that this particular press was now available because the original purchaser in China had not accepted the shipment. To incentivize BQ Printers to accept the press that was rejected by the original purchaser, the email offered BQ Printers “a rebate of $15,000.00 on the purchase price of the press.” BQ Printers confirmed the order and Stampa arranged for an air shipment from Beijing, China to Baltimore, Maryland. The press left China on January 17, 2025, on Shark Airlines under Air Waybill 989-2349 9976. While enroute from Beijing to Baltimore, the flight was diverted from Baltimore to Boston, Massachusetts due to inclement weather. BQ Printers’s Customs broker, Fast Brokers, LLC (Fast Brokers) was notified of the flight diversion. An alert Fast Brokers employee modified the unsubmitted entry / entry summary documentation in their automated broker interface system to reflect that the shipment was landing and being unladen in Boston instead of Baltimore, the intended port of entry. The employee worked with a representative of Shark Airlines to arrange for ground transportation from Boston to Baltimore by Exact Trucking, a carrier bonded under 19 CFR 113.63 for the transportation and delivery of merchandise. Fast Brokers created the CBP Form 7512 (CBPF 7512) naming Exact Trucking as the bonded carrier. CBP Officer Evans at the Port of Baltimore marked the merchandise as “arrived” in processing the transportation entry. The date of entry is January 17, 2025. BQ Printers paid Stampa’s invoice on January 21, 2025. Below are the documents that Shark Airlines timely provided to Fast Brokers prior to exportation. On the provided broker invoice, MPF stands for merchandise processing fee, and HMF stands for harbor maintenance fee. Using the provided airway bill of lading, commercial invoice, and broker invoice to the importer, as well as the facts above, answer the following five questions by choosing the best answer. What is the dutiable value of the press?

1. $65,000.00 ✓
2. $80,000.00
3. $99,600.00
4. $114,600.00

Why: Under 19 CFR 152.103(a)(1) the price actually paid or payable is taken without regard to how it was derived and may be the result of discounts or negotiations, so the $15,000 price reduction Stampa offered and BQ Printers accepted before shipment is part of the agreed price, leaving $65,000. The definition of “price actually paid or payable” in 19 CFR 152.102(f) is by its terms “exclusive of any charges, costs, or expenses incurred for transportation, insurance, and related services incident to the international shipment of the merchandise,” so the prepaid international freight and insurance built into the C.I.F. price are not part of transaction value when they are separately identified. The $80,000 answer ignores the negotiated reduction, and the $99,600 and $114,600 answers wrongly leave the international transportation and insurance charges in the dutiable value.

A mold for toys was provided free of charge to a French manufacturer by the U.S. importer. The original cost of the mold was $180,000 but 2/3 of the useful life of the mold had been used by the U.S. importer prior to sending it to France. The U.S. Importer paid the freight cost of $1,600. When calculating transaction value, what is the total value of the assist for the mold?

1. $0.00
2. $61,600.00 ✓
3. $180,000.00
4. $181,600.00 Section 3: Examination Process Evaluation Survey This survey is administered to collect information about the Customs Broker License Examination process (CBLE). The survey is voluntary, and your responses will have no impact on your score.

Why: A mold supplied free of charge for use in producing the imported merchandise is an assist under 19 CFR 152.102(a)(1)(ii). Under 152.103(d)(2), where the buyer has previously used the tool, the original cost of acquisition or production is adjusted downward to reflect that prior use, and the value of the assist includes transportation costs to the place of production. With two-thirds of the mold's useful life consumed, $180,000 is reduced to $60,000, and adding the $1,600 freight gives an assist value of $61,600.

A broker under investigation offers in writing to suspend its own license for a period of six months on terms it has negotiated with CBP. Under 19 CFR 111.52, who may accept that offer?

1. The appropriate Executive Director, Office of Trade ✓
2. The Executive Assistant Commissioner, Office of Trade
3. The port director for the broker's district of record
4. The Court of International Trade, on a consent motion

Why: 19 CFR 111.52 vests this authority in the appropriate Executive Director, Office of Trade, who may accept a broker's written voluntary offer of suspension of the broker's license or permit for a specific period of time under any terms and conditions to which the parties may agree. Three features of the sentence deserve attention. The offer must be written and voluntary; it must be for a specific period rather than open-ended; and the acceptance is discretionary, since the section says may accept rather than will accept. Because the mechanism is consensual, no adjudication, hearing, or court involvement is required, which is what separates it from the disciplinary route elsewhere in subpart D.

The following types of evidence of right to make entry for importations by common carrier when merchandise is not released directly to the carrier are acceptable types of evidence EXCEPT:

1. A bill of lading or air waybill properly endorsed when required.
2. An extract from a bill of lading or air waybill that has not been certified to be genuine by the carrier bringing the merchandise to the port of entry. ✓
3. A certified duplicate bill of lading or air waybill with the carrier's certificate in the required form.
4. A shipping receipt or other document presented in lieu of a bill of lading when entry is made by the actual consignee in person.

Why: 19 CFR 141.11(a)(2) accepts as evidence of the right to make entry 'an extract from a bill of lading or air waybill **certified to be genuine by the carrier** bringing the merchandise to the port of entry.' An uncertified extract therefore does not qualify. The other three options track 141.11(a)(1) (a properly endorsed bill of lading or air waybill presented by the holder), 141.11(a)(3) (a certified duplicate bearing the carrier's certificate in the prescribed form), and 141.11(a)(6) (a shipping receipt or other document where entry is made by the actual consignee in person).

A surety gives notice to the Revenue Division and to the principal that it is terminating its agreement to accept future obligations on a continuous bond, stating an effective date. Which statement is correct under 19 CFR 113.27?

1. The surety may disavow obligations already incurred on the bond
2. New customs transactions may still be charged against the bond
3. Thirty days constitutes reasonable notice of the termination ✓
4. The consent of the principal is required for the termination

Why: 19 CFR 113.27(b) sets thirty days as the benchmark, providing that thirty days will constitute reasonable notice unless the surety can show to the satisfaction of CBP that a shorter time frame is reasonable under the facts and circumstances. Note the direction of that burden: the surety must justify anything shorter, and CBP is the judge. The same paragraph disposes of two of the distractors in its opening words, since a surety may not disavow already incurred obligations but may terminate its agreement as to future ones, and may do so with or without the consent of the principal. Paragraph (c) answers the last: once a bond is terminated no new customs transactions may be charged against it, and a new bond on CBP Form 301 with the appropriate subpart G conditions must be filed before further customs activity may be transacted.

An importer disputes the accrual of interest that CBP assessed in connection with an entry. Under 19 CFR 174.11, is that accrual among the subject matters subject to protest?

1. Yes, but only as part of a value protest
2. No, interest must be contested in court first
3. Yes, as a charge or exaction of any character ✓
4. No, interest accrual is not protestable at all

Why: 19 CFR 174.11(b)(3) makes protestable all charges or exactions of whatever character, including the accrual of interest, within the jurisdiction of the Secretary of Homeland Security or the Secretary of the Treasury. The answer conditioning the challenge on a value protest is wrong because (b)(3) is an independent protestable subject matter, standing separately from the appraised value ground in 19 CFR 174.11(b)(1).

Under 19 CFR 146.14, retail trade within a foreign trade zone is:

1. Permitted only for domestic status merchandise
2. Prohibited except as provided in 19 U.S.C. 81o(d) ✓
3. Permitted with the port director's written approval
4. Prohibited without exception of any kind

Why: Qualified, not absolute — that is the shape of 19 CFR 146.14, which provides that "Retail trade is prohibited within a zone except as provided in 19 U.S.C. 81o(d)." The only escape the regulation recognizes is the statutory one; no port director approval and no zone-status distinction appears anywhere in the section. An option describing the ban as admitting of no exception overstates a rule the text itself qualifies in the same sentence.

A drawback claim filed by a manufacturer is liquidated on March 1. Under 19 CFR 190.15, how long must the records pertaining to that claim be retained?

1. 5 years after liquidation of the drawback claim
2. 5 years after the date of importation of the goods
3. 3 years after liquidation of the drawback claim ✓
4. 3 years after the date the drawback claim is filed

Why: 19 CFR 190.15 anchors drawback record retention to liquidation of the claim: all records pertaining to the filing of a drawback claim, or to the information contained in the records required by 19 U.S.C. 1313 in connection with that filing, must be retained for 3 years after liquidation of such claims. A March 1 liquidation therefore starts the three years on March 1. Neither the date of importation nor the date the claim was filed is the trigger the section uses, and five years is not a period it states.

Which of the following statements is accurate with regard to “cough drops” of Chapter 17, HTSUS?

1. Cough drops must contain a minimum of 5mg per dose of menthol, of eucalyptol, or of a combination of menthol and eucalyptol. ✓
2. Cough drops must contain a minimum of 10mg per dose of menthol, of eucalyptol, or of a combination of menthol and eucalyptol.
3. Cough drops must contain a minimum of 5mg per dose of raw sugar.
4. Cough drops must consist of blended syrups containing sugars derived from sugar cane or sugar beets.

Why: Chapter 17, Additional U.S. Note 11, HTSUS, defines the "cough drops" of subheading 1704.90.25 by their active ingredient content, requiring a minimum of 5 mg per dose of menthol, of eucalyptol, or of a combination of the two. The threshold is 5 mg, not 10 mg, and it is measured by menthol/eucalyptol content rather than by raw sugar content or by whether the product is made from blended cane or beet syrups.

Upon conclusion of an investigation under 19 CFR 165.15, CBP will make a determination based on _____ as to whether covered merchandise was entered into the customs territory of the United States through evasion.

1. probable cause
2. clear and convincing evidence
3. preponderance of evidence
4. substantial evidence ✓

Why: 19 CFR 165.27(a) provides that "upon conclusion of the investigation, CBP will make a determination based on substantial evidence as to whether covered merchandise was entered into the customs territory of the United States through evasion." Substantial evidence is the governing standard for an EAPA determination - not probable cause, preponderance of the evidence, or clear and convincing evidence.

Speedy Imports received three shipments of adhesives exported from Mexico via truck. Each shipment entered the United States on three different dates; the first on June 10th, the second on June 12th, and the third on June 14th, of this year. The adhesives in all of the shipments are classified under subheading 3506.10.5000, HTSUS, and includes adhesives of U.S. and Mexican origin. All shipments are consigned to Sticky Fingers LLC. Speedy Imports consolidated all three entries into one entry summary on June 15th with each entry identified by its entry number. Speedy Imports later was notified that the entry summary was rejected. Based on the above information, which of the following best explains why the entry summary was rejected?

1. The time between the date of the first entry and the last entry exceeded the time allowed.
2. The entry summary document was filed too late based on the dates of entry.
3. The country of origin of the merchandise was not the same for all merchandise. ✓
4. The merchandise was not consigned to one consignee.

Why: 19 CFR 142.17(a) permits one entry summary for merchandise covered by separate entries only if all six listed conditions are met, and (a)(1) requires that the merchandise have the same country of exportation and the same country of origin. These shipments include adhesives of both U.S. and Mexican origin, so the origin condition fails and the entry summary was properly rejected. The other conditions were satisfied: the June 10 to June 14 span is within the one-week limit of (a)(4), the June 15 filing is well within the 10 working days allowed by (a)(5), all shipments were consigned to Sticky Fingers LLC as (a)(3) requires, and each entry was separately identified by entry number as (a)(6) requires.

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

1. Any conduct which would be deemed unfair or detrimental in commercial transactions by accepted standards.
2. A failure to establish the good character and reputation of the applicant.
3. Being 20 years old on the date of submission of the broker's license application.
4. Being a citizen of the United States for only one year prior to the date of submission of the broker’s license application. ✓

Why: 19 CFR 111.11(a)(1) requires only that an individual applicant be a U.S. citizen on the date the application is submitted — there is no minimum period of citizenship — so having been a citizen for just one year is not a ground for denial. The other three choices are grounds: 111.16(b)(6) lists conduct deemed unfair or detrimental in commercial transactions, 111.16(b)(4) lists failure to establish good character and reputation, and being 20 years old fails 111.11(a)(2) (the applicant must attain age 21 prior to submission), which is a ground for denial under 111.16(b)(2) for failure to meet a 111.11 requirement.

CBP issues a bill for vessel repair duties. Under 19 CFR 24.3a, how is the late payment date appearing on that bill determined?

1. It is the date 15 calendar days after the interest computation date
2. It is the date 30 calendar days after the interest computation date ✓
3. It is the date 30 calendar days after liquidation of the vessel entry
4. It is the date 60 calendar days after the date the bill is received

Why: Bills for vessel repair duties, reimbursable services, and miscellaneous amounts are handled by 19 CFR 24.3a(b)(1), which provides that the late payment date is the date 30 calendar days after the interest computation date, and that the interest computation date is initially the bill date. The competing 15-day figure comes from 19 CFR 24.3a(b)(3), re-read here, and applies only where a depository bank notifies CBP by debit voucher of a dishonored payment. Matching the interval to the type of bill, rather than reciting a single number, is what the item tests.

A good imported into the United States would have qualified as an originating good, but no claim for preferential tariff treatment was made at the time of importation. Under 19 CFR 182.31, when may the importer file a claim for refund of excess customs duties?

1. Within one year after the date of importation of the good ✓
2. Within one year after the date of liquidation of the entry
3. Within 90 days after the date of entry summary filing
4. Within 180 days after the date of importation of the good

Why: 19 CFR 182.31 starts its clock at importation and nowhere else: an importer whose good would have qualified as originating, but for which no claim for preferential tariff treatment was made, may file a claim for refund of any excess customs duties at any time within one year after the date of importation of the good, in accordance with 19 U.S.C. 1520(d). Liquidation is the stage at which the refund is granted, which is what makes the liquidation-date option tempting, but the section keeps filing and refund distinct. Its opening words, 'Notwithstanding any other available remedy,' confirm that this route runs alongside rather than in place of the ordinary avenues.

Which of the following is NOT identified among the specified criteria that CBP will consider when reviewing an applicant’s record with CBP for purposes of an application for accelerated payment of drawback?

1. The number of trade compliance employees hired by the drawback claimant in the last 12 months. ✓
2. The presence or absence of unresolved CBP charges (duties, taxes, fees, or other debts owed CBP).
3. The accuracy of the claimant’s past drawback claims.
4. Whether accelerated payment of the drawback or waiver of prior notice of intent to export was previously revoked or suspended.

Why: 19 CFR 190.92(e)(1) lists the criteria CBP considers when reviewing an accelerated-payment applicant's record with CBP: (i) the presence or absence of unresolved CBP charges (duties, taxes, fees, or other debts owed CBP); (ii) the accuracy of the claimant's past drawback claims; and (iii) whether accelerated payment or waiver of prior notice was previously revoked or suspended. The number of trade compliance employees a claimant has hired in the last 12 months appears nowhere in the provision, making option A the correct 'NOT identified' answer.

19 CFR 190.6(b) lists the documents that must be signed or electronically certified only by a person described in 19 CFR 190.6(a). Which of the following is NOT listed in paragraph (b)?

1. Bills of materials and formulas not part of a drawback claim
2. An application for approval of accelerated payment of drawback ✓
3. Certifications to assign the right to claim drawback
4. Notices of Intent to Export, Destroy, or Return Merchandise

Why: An application for approval of accelerated payment of drawback is placed by 19 CFR 190.6(c)(4) in the separate category of documents that may be executed either by a person described in paragraph (a) or by any other individual legally authorized to bind the person for whom the document is executed. The paragraph (b) list was then checked item by item: drawback entries at (b)(1), Notices of Intent to Export, Destroy, or Return Merchandise for Purposes of Drawback at (b)(2), certifications to assign the right to claim drawback at (b)(3), and abstracts, schedules and extracts from monthly abstracts, and bills of materials and formulas not included as part of a drawback claim at (b)(4). Sorting documents between paragraphs (b) and (c) is essentially the entire content of this section.

A licensed broker holds a proper power of attorney authorizing it to make declarations under section 485(f) and has knowledge of the facts of the transaction. It executes the declaration on the entry summary in the consignee's name. Under 19 CFR 141.19, what else is required?

1. A declaration of the consignee on Customs Form 3347-A
2. Nothing further; no declaration bond is required ✓
3. A charge against the bond on Customs Form 301
4. A separate bond of the agent under § 113.62

Why: Where the agent both knows the facts and is authorized under a proper power of attorney to make declarations under section 485(f), 19 CFR 141.19(b)(1) provides that the agent's declaration on the entry or entry summary "is sufficient and no bond to produce a declaration of the consignee is required." Customs Form 3347-A and the charge against the Form 301 bond are the two alternatives offered by 19 CFR 141.19(b)(2), and they apply only to agents who fail those qualifications. Even in that fallback situation, (b)(2)(ii) expressly states that no separate bond of the agent is required.

Which of the following is an element of computed value of imported merchandise?

1. The selling price of the merchandise in the United States
2. The amount of internal tax imposed by the country of export that is directly applicable to the materials
3. The price of merchandise in the domestic market of the country of exportation
4. The packing costs of the imported merchandise ✓

Why: 19 CFR 152.106(a) defines computed value as the sum of four elements: the cost or value of materials and the fabrication and other processing employed in producing the merchandise; an amount for profit and general expenses; any assist not already included; and, under 152.106(a)(4), the packing costs. Packing costs are therefore an express element of computed value. The U.S. selling price and the home-market price in the country of exportation belong to other valuation methods (deductive value and a method the statute forbids), and 152.106(b)(1) excludes internal taxes of the country of exportation from the cost of materials where the tax is remitted or refunded on exportation.

A centralized examination station operator hires two new employees who will work in the CES operation. Under 19 CFR 118.4, what must the operator do?

1. Submit written additions to the port director within 10 days ✓
2. Submit written additions to the port director within 30 days
3. Submit fingerprints of the employees to Customs within 10 days
4. Amend the approved application and refile it with the Center

Why: 19 CFR 118.4(f) requires the operator to keep current the list filed with the port director pursuant to 19 CFR 118.11(f), and specifies that additions to or deletions from the list must be submitted in writing to the port director within 10 calendar days of the commencement or termination of employment. Note that departures run on the same clock as hires, so the obligation is not simply a hiring notification. Fingerprints are a separate matter altogether: under (i) the operator submits the fingerprints of all employees involved in the CES operation only if requested by Customs, which means fingerprints are never the automatic response to a hire. Amending the approved application is the mechanism for changing the fee schedule under (c) and 19 CFR 118.5, not for personnel changes.

Which of the following costs should not be added to the price actually paid or payable to determine the transaction value for an entry of luxury watches?

1. The watch face and band pattern designed in Switzerland, which is provided free of charge by the U.S. buyer to the foreign manufacturer.
2. The royalty fees related to the luxury watches which the U.S. buyer is required to pay as a condition of the sale.
3. The cost of several milling machines provided free of charge by the U.S. buyer/importer to the foreign manufacturer/exporter to cut and shape parts such as gears.
4. The shipping costs paid by the U.S. buyer to import the luxury watches. ✓

Why: Under 19 CFR 152.102(f) the price actually paid or payable is exclusive of charges for transportation, insurance and related services incident to the international shipment of the merchandise, so international shipping costs are never added. By contrast, 152.103(b)(1) requires additions for the value of any assist (the free-of-charge design work under 152.102(a)(1)(iv) and the milling machines under 152.102(a)(1)(ii)) and for royalties the buyer must pay as a condition of sale under 152.103(b)(1)(iv). Only the shipping cost falls outside the price actually paid or payable.

A shipment bearing a mark that resembles a recorded trademark closely enough that the public would likely associate the two is presented for Customs examination on May 1 and is detained. Under § 133.22, how long does the importer have to establish that an exempting circumstance applies?

1. 60 days from presentation for examination
2. 15 days from the date of entry filing
3. 30 days from presentation for examination ✓
4. 30 days from the date of importation

Why: 19 CFR 133.22(c) requires articles subject to the section's restrictions to be detained for 30 days from the date on which the goods are presented for Customs examination, to permit the importer to establish that one of the listed circumstances applies. The option measuring 30 days from importation is tempting because the periods are the same length, but the regulation keys the period to presentation for examination rather than arrival. If release is not obtained within that period, 19 CFR 133.22(f) requires seizure and forfeiture proceedings.

The entire quantity covered by an immediate transportation entry arrives at the port of destination and the arrival is timely reported, but no consumption or warehouse entry is filed and the merchandise is not exported or admitted to a foreign-trade zone. When does the merchandise become subject to general order requirements?

1. Thirty days after arrival at the port
2. Six days after arrival at the port
3. Sixteen days after arrival at the port ✓
4. Sixteen days after the in-bond filing

Why: 19 CFR 18.1(k) requires merchandise covered by an in-bond shipment to be entered, exported, or admitted to a foreign-trade zone within 15 calendar days from the date of arrival of the entire in-bond shipment, and states that sixteen days after arrival the merchandise becomes subject to general order requirements. The thirty-day option is tempting because 30 days is the general maximum in-transit time under paragraph (i)(1), but that period governs the movement itself, not the post-arrival window.

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

1. Whether the broker has not engaged in any conduct that could constitute grounds for suspension or revocation of an individual broker under 19 CFR 111.53.
2. A change of non-business mailing address if the broker is an individual broker not actively engaged in transacting business as a broker.
3. A newly hired employee's name, date of birth, place of birth, current home address, and misdemeanor arrest records. ✓
4. The date a licensed brokerage member ceases to be the qualifying officer for purposes of 19 CFR 111.11(b) or (c)(2), and the name of the succeeding broker.

Why: 19 CFR 111.28(b)(1)–(2) requires a broker to submit, for each employee, only the name, social security number, date and place of birth, date of hire, and current home address — misdemeanor arrest records are not among the required data, so option C is the EXCEPT answer. The other three are required: 19 CFR 111.30(d)(2) requires the triennial status report to state that the broker has not engaged in conduct constituting grounds for suspension or revocation under 111.53; 111.30(a) requires a non-business address for a broker not actively engaged; and 111.30(b)(1) requires reporting the date a licensed member or officer ceases to be the qualifier under 111.11(b) or (c)(2) together with the name of the successor.

A general partnership with four partners wishes to grant a customs power of attorney to a broker. Which statement correctly describes what 19 CFR 141.39 permits?

1. All four partners must sign it
2. One partner may execute it alone ✓
3. Only a managing agent may sign
4. Two partners must jointly sign

Why: 19 CFR 141.39(a)(1) provides that one member of the partnership may execute a power of attorney in the name of the partnership for the transaction of all its Customs business. Requiring every partner's signature confuses execution with content: the same paragraph requires that the power of attorney state the names of all members of the partnership, but only one member need sign it.

How should you report the known U.S. State of Destination Code on CBP Form 7501 at the time of entry summary filing when the contents of the shipment are destined to more than one state, territory, or possession?

1. Report the state of destination by spelling out the entire name of the destination location with the least aggregate value.
2. Report the state of destination using the standard postal two-letter state or territory abbreviation of the destination location with the greatest aggregate value. ✓
3. Report the state of destination as "MULTI" to reflect that there are multiple destinations.
4. Report all of the states, territories, and possessions that are listed on the shipping documents using the standard postal two-letter state or territory abbreviation.

Why: Under the ACE entry summary instructions for the State of Destination field, when a shipment is destined for more than one state, territory, or possession the filer reports the single destination with the **greatest aggregate value**, using the standard two-letter postal abbreviation. Reporting the lowest-value destination, spelling out the name, entering 'MULTI,' or listing every destination are all outside the field's format and content rules.

A Canadian supplier ships fabric swatches to a United States firm that will use them solely to solicit orders for foreign goods. The swatches are not marked, torn, perforated or otherwise treated, and their aggregate value as shipped is $1.80 United States. Do they qualify for duty-free entry under subheading 9811.00.60, HTSUS?

1. No, samples valued over one dollar must be treated before arrival ✓
2. Yes, because the aggregate value as shipped is under five dollars
3. Yes, because they are imported solely to solicit orders for goods
4. No, because commercial samples from Canada never qualify at all

Why: The condition that fails is 19 CFR 182.111(b)(2), which requires that samples valued over one U.S. dollar be properly marked, torn, perforated or otherwise treated prior to arrival in the United States so that they are unsuitable for sale or for use except as commercial samples. Both conditions in paragraph (b) must be satisfied, and they were each checked against the text: (b)(1) requires that the samples be imported solely for the purpose of soliciting orders for foreign goods or services, which these swatches satisfy, while (b)(2) imposes the treatment requirement, which they do not. Satisfying (b)(1) alone is what the third option mistakes for qualification. The relevant threshold is one U.S. dollar, or the equivalent amount in Canadian or Mexican currency, so $1.80 is over it; there is no five-dollar figure anywhere in the section.

For purposes of the valuation subpart, each of the following is an unacceptable basis of appraisement EXCEPT:

1. The selling price in the United States of merchandise produced in the United States
2. The price of merchandise in the domestic market of the country of exportation
3. A cost of production determined under 19 CFR 152.106 for similar merchandise ✓
4. A system providing for appraisement at the higher of two alternative values

Why: The exception is buried inside 19 CFR 152.108(d), which bars 'a cost of production, other than a value determined under 152.106 for merchandise that is identical merchandise, or similar merchandise, to the merchandise being appraised.' That 'other than' clause is the whole question: a cost-of-production figure is prohibited generally, but a computed value arrived at under 19 CFR 152.106 for identical or similar merchandise is carved out and remains available. Reading (d) too quickly and treating it as a flat ban on cost of production is the standard error. The three prohibited options track the section verbatim - the United States selling price of domestically produced merchandise is barred by 19 CFR 152.108(a), the exporting country's domestic market price by 19 CFR 152.108(c), and the higher-of-two-values system by 19 CFR 152.108(b); each of those three paragraphs was re-read to confirm the pairing.

Which of the following statements best describes the Toxic Substances Control Act (TSCA)?

1. The TSCA governs the importation into the customs territory of the U.S. of food, drugs, devices, cosmetics, and tobacco products.
2. The TSCA governs the manufacturing, production, and distribution of controlled dangerous substances (CDS) in the U.S. and articles containing controlled dangerous substances.
3. The TSCA governs the importation into the customs territory of the U.S. of a chemical substance in bulk form or as part of a mixture, and articles containing a chemical substance or mixture. ✓
4. The TSCA governs the importation into the customs territory of the U.S. of pesticides, fungicides, rodenticides, and devices related to such substances.

Why: 19 CFR 12.118 states that the Toxic Substances Control Act "governs the importation into the customs territory of the United States of a chemical substance in bulk form or as part of a mixture, and articles containing a chemical substance or mixture." Option C tracks that sentence. Food, drugs, devices, cosmetics and tobacco are governed by the FDA provisions, controlled substances by the DEA provisions, and pesticides and rodenticides by FIFRA - none of which is TSCA.

A shipment of a covered commodity is detained on March 1 under the TSCA provisions of 19 CFR part 12. On March 20 CBP issues a demand for redelivery. By what date must the importer bring the shipment into compliance with TSCA or export it from the customs territory?

1. March 31, thirty days after the notice of detention
2. April 19, thirty days after the redelivery demand ✓
3. May 30, ninety days after the notice of detention
4. June 18, ninety days after the redelivery demand

Why: Two clocks run at once under 19 CFR 12.124(a): 90 days from notice of detention and 30 days from a demand for redelivery, with the importer held to whichever comes first. Because the redelivery demand issued on March 20, its 30-day clock expires April 19, well ahead of the detention clock. The trap is reading "whichever comes first" as though it selected the more generous period; it does the opposite, so the 90-day figure stops controlling the moment a redelivery demand is made.

A U.S. buyer purchased merchandise from an unrelated manufacturer in India. The terms of the sale were ex-factory packed. The U.S. buyer paid the foreign manufacturer $18,344 which included a $1,500 packing fee. The U.S. buyer also paid $4,500 to a freight forwarder to cover expenses for inland freight of $500 and air freight of $4,000. In addition, the U.S. buyer paid a commission of $1,500 to a buying agent who facilitated the purchase of the merchandise. What is the entered value for the imported merchandise?

1. $18,344.00 ✓
2. $12,344.00
3. $6,500.00
4. $25,844.00

Why: The entered value is the price actually paid or payable, $18,344.00, which already includes the $1,500 packing charge - packing costs are dutiable under 19 CFR 152.103(b)(1)(i) and, being inside the price, require no separate addition. The sale was ex-factory packed, so under 19 CFR 152.103(a)(5)(i) the foreign inland freight and other charges incident to international shipment "will not be added to the price," and the $4,000 air freight is excluded from the price actually paid or payable by 19 CFR 152.102(f) in any event. The $1,500 buying agent commission is not a selling commission and is not among the additions listed in 152.103(b)(1), so it too is not dutiable - leaving $18,344.00.

What is the CLASSIFICATION of a four-piece U-shaped modular sofa sectional unit from Brazil? The sofa sectional is constructed of plywood and upholstered in polyester, rayon, and nylon textile fabrics. The sofa sectional is comprised of (1) left arm facing (LAF) component, (1) right arm facing (RAF) chaise component, (1) double seat component with no armrests, and (1) ottoman component. Each seat component contains a connector plate and an interlocking bolt that links one piece to the next. Once assembled, a unified sectional sofa is presented.

1. 9401.71.0031
2. 9401.31.0000
3. 9401.79.0003
4. 9401.61.6011 ✓

Why: Note 2 to Chapter 94, including Note 2(a), limits heading 9401 to articles designed for placing on the floor or ground, which this modular U-shaped sectional plainly is; under GRI 1 the interlocking components presented together and assembled into one unified sofa are classified as a single seat of heading 9401. Because the seat has a wooden (plywood) frame and is upholstered in textile fabrics, the correct subheading is 9401.61.6011. Subheading 9401.71 covers upholstered seats with **metal** frames, 9401.31 covers swivel seats, and 9401.79 covers non-upholstered metal-framed seats, none of which describe this article.

What is the CLASSIFICATION of a teacup that is made of a porcelain containing 28 percent of tricalcium phosphate, valued at $18.00, and not available in specified sets?

1. 6911.10.2500 ✓
2. 6911.10.3810
3. 6911.10.5800
4. 6911.10.8010

Why: Additional U.S. Note 5(b) to Chapter 69, HTSUS defines bone chinaware as vitrified translucent ware containing at least 25 percent by weight of tricalcium phosphate (bone ash). A porcelain teacup containing 28 percent tricalcium phosphate therefore meets the bone-china definition and is classified in the bone-china breakout, subheading 6911.10.2500, once Additional U.S. Note 6 confirms it is not available in the specified sets. Subheadings 6911.10.3810, 6911.10.5800 and 6911.10.8010 all sit under the provisions for porcelain or china other than bone china, so they are unavailable once the 25 percent bone-ash threshold is met.

Merchandise withdrawn from a bonded warehouse for transportation is rewarehoused at the port of destination. The merchandise consists of cigars subject to internal revenue taxes. How is liability for duties on the rewarehouse entry determined?

1. It follows the liquidation of the original warehouse entry in all events
2. It is determined separately, as such cigars are excluded from that rule ✓
3. It follows the liquidation only if the two ports share a single Center
4. It is determined by the port director at the port of original entry

Why: Cigars subject to internal revenue taxes fall within the exclusion in 19 CFR 159.7(a), so the general follow-the-original-liquidation rule does not reach them. The opening sentence of 19 CFR 159.7 states that the liquidation of the original warehouse entry shall be followed in determining liability for duties on a rewarehouse entry, and it is that sentence, taken alone, that makes the first option look right. Paragraph (a) then carves out four categories of merchandise excluded from the liquidation of the original warehouse entry, and each was re-read here: alcoholic beverages of headings 2203 through 2208, HTSUS, subject to internal revenue taxes; cigars, cigarettes, and cigarette papers and tubes subject to internal revenue taxes; tariff-rate quota merchandise; and wool or hair dutiable per clean kilogram under chapter 51. Two further exceptions follow in paragraphs (b) and (c), for reliquidation required by a change in rate and for shortage or similar cases.

Goods bearing a genuine mark applied under the authority of the U.S. owner have been determined by Customs to be physically and materially different from the authorized articles. What labeling will keep them from being detained?

1. A label lasting until entry is made, on the invoice
2. A label lasting until entry is made, near the trademark
3. A label lasting to first retail sale, near the trademark ✓
4. A label lasting to first retail sale, on the invoice

Why: Two attributes govern under 19 CFR 133.23(b): the label must be "conspicuous and legible" and "designed to remain on the product until the first point of sale to a retail consumer in the United States," and it must be "in close proximity to the trademark as it appears in its most prominent location on the article itself or the retail package or container." An invoice notation satisfies neither, because the label exists to reach the consumer rather than CBP. The paragraph also prescribes the exact wording of the required statement and permits, without requiring, other information designed to dispel consumer confusion.

Ninety-five days after liquidation, an importer sends the Center director a written request for an explanation of how the value of the imported merchandise was determined. Under 19 CFR 152.101, the request is:

1. timely, since the period runs from date of entry
2. untimely, since the request period is 90 days ✓
3. timely, since no time limit governs requests
4. untimely, since only a formal protest is allowed

Why: 19 CFR 152.101(d) obliges the Center director to furnish a reasonable and concise written explanation of how value was determined only upon receipt of a written request from the importer within 90 days after liquidation. A request sent on day 95 is untimely; the answer asserting no time limit ignores that express window, and the period runs from liquidation rather than from the date of entry.

Other than the owner or purchaser, of the following, who has the authority to sign or certify electronic transmissions of the entry or entry summary?

1. Any employee of the properly designated customs broker.
2. Any employee of the properly designated customs broker who also has a login to the broker's electronic submission software to send data to CBP.
3. All employees of the properly designated customs broker who also have been granted power of attorney (POA) by the customs broker. ✓
4. A nominal consignee in its own name without the services of a properly designated customs broker.

Why: Other than the owner or purchaser, entry documents may be signed only by a licensed broker or by a broker's employee acting under the broker's authority. 19 CFR 111.2(a)(2)(ii)(A)(1) permits an unlicensed employee to sign where "the broker has authorized the employee to sign documents pertaining to customs business on his behalf, and has executed a power of attorney for that purpose," which is the rule restated in Directive 3530-002A, section 5.3. Mere employment or software access confers no signature authority, and a nominal consignee has no right to make entry in its own name without a designated broker.

What action must be taken with regards to merchandise for which a permit for withdrawal from a customs warehouse has been issued? Note: the permit is not a blanket permit.

1. The merchandise must be removed from the warehouse prior to the preparation of the supplementary withdrawal.
2. The merchandise must be physically removed from the warehouse, only when it is duty-paid, within 15 days after the withdrawal permit has been issued.
3. All merchandise, besides duty-free merchandise which has been withdrawn, but not removed, does not remain in CBP custody, and must be physically removed after merchandise for which a permit for withdrawal has been issued.
4. The merchandise must be segregated or physically marked to maintain its identity for merchandise for which a withdrawal permit has been issued. ✓

Why: 19 CFR 19.6(b)(2) provides that merchandise for which a permit for withdrawal has been issued, whether duty-paid or not, need not be physically removed from the warehouse, but 'such merchandise must be segregated or physically marked to maintain its identity as merchandise for which a withdrawal permit has been issued.' Option B fails because there is no 15-day removal requirement, and option C reverses the rule: duty-paid or unconditionally duty-free merchandise withdrawn but not removed is no longer in CBP custody, while all other withdrawn-but-not-removed goods remain in CBP custody until the end of the warehouse entry bond period. The supplementary-withdrawal sequencing in option A belongs to the blanket permit procedure of 19.6(d)(2), not to an ordinary permit.

An importer learns that a quota applicable to its merchandise allows a set quantity to be entered at a reduced duty rate during the quota period, and that shipments beyond that quantity may still be entered at a higher rate. Which category of quota does the § 132.1 definition describe?

1. An absolute quota under § 132.1(a)
2. A global quota under § 132.1(a)
3. A geographic quota under § 132.1(a)
4. A tariff-rate quota under § 132.1(b) ✓

Why: 19 CFR 132.1(b) defines tariff-rate quotas as those permitting a specified quantity of merchandise to be entered or withdrawn for consumption at a reduced duty rate during a specified period. Absolute quotas, defined in 19 CFR 132.1(a), permit no further entries once the quantity is filled, which does not match the facts. Global and geographic quotas described in paragraph (a) are both subsets of absolute quotas and are distinguished by whether the limit turns on source or total quantity.

Which of the following statements is TRUE? For the purposes of this question, an organization means a partnership, association, or corporation.

1. An applicant for a national permit applying on behalf of an organization must be an individually licensed customs broker employed by the organization and such individual will also be responsible for exercising responsible supervision and control over the activities conducted under that national permit. ✓
2. An applicant who obtains a passing grade on the examination for an individual broker license may apply for a national permit and the permit will be issued if the broker license is denied as long as the requirements of 19 CFR 111.19(b)(2) - (11), (c) and (d) are met.
3. An organizational broker must be issued a district permit by the processing Center before the organization may apply for a national permit for the purpose of transacting customs business in accordance with the requirements in 19 CFR Part 111.
4. An employee of a broker may, acting on his or her own behalf and without an individual license, while on the employer's premises, execute powers of attorney between the employee and clients of the employee and use the employer's facilities to conduct customs business on behalf of those clients.

Why: 19 CFR 111.19(b) states that an applicant applying for a national permit on behalf of a partnership, association, or corporation must be a licensed broker employed by that organization, and 111.19(b) and (f) both provide that the applicant/qualifier will exercise responsible supervision and control (as described in 111.28) over the activities conducted under the permit. The other options fail: a national permit cannot issue if the underlying licence is denied; district permits were eliminated - 111.19(a) makes the national permit the sole permit for transacting customs business throughout the customs territory; and 111.2(a)(2)(ii) excuses an employee from licensure only when acting *solely for the employer*, not when taking powers of attorney from his or her own clients.

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?

1. CBP maintains the copies and the customs broker does not need to retain their own copies of the submitted records.
2. The customs broker is required to maintain copies of the submitted records. ✓
3. The customs broker is required to request the return of the submitted records from CBP.
4. CBP will notify the customs broker when they can destroy their copies of the submitted records.

Why: 19 CFR 163.3 closes with the operative sentence: entry records normally kept in the ordinary course of business must be maintained by the recordkeeping party 'whether or not copies thereof are retained by Customs.' Under 19 CFR 163.2(a), a broker who imports merchandise and files entry records is squarely a person required to maintain records, and that duty is not discharged by transmitting the records to CBP. Option A is the classic trap — CBP's retention of copies is legally irrelevant to the broker's own retention obligation, and nothing in Part 163 requires the broker to request return of records or to wait for CBP permission to destroy them.

Under 19 CFR 174.11, each of the following CBP administrative decisions is subject to protest EXCEPT:

1. an exclusion appealable under 19 U.S.C. 1337 ✓
2. the liquidation or reliquidation of an entry
3. the appraised value of the merchandise
4. the refusal to pay a drawback claim

Why: 19 CFR 174.11(b)(4) makes protestable the exclusion of merchandise from entry or delivery, or a demand for redelivery to CBP custody, under any provision of the customs laws “except a determination that may be appealed under 19 U.S.C. 1337.” The other three choices are each expressly protestable — liquidation or reliquidation under 19 CFR 174.11(b)(5), appraised value under 174.11(b)(1), and refusal of a drawback claim under 174.11(b)(6) — so the section 337 exclusion is the exception.

Which one of the following types of merchandise must be seized upon importation and delivered to the nearest United States Secret Service representative?

1. Metal die stamps containing the likeness of a toonie, a $2 dollar coin of Canadian currency. ✓
2. A movie film containing matter advocating or urging treason or insurrection against the United States.
3. Matches manufactured with white phosphorus.
4. Switchblade knives that do not qualify for an exception under 15 USC 1244.

Why: 19 CFR 12.48(a) provides that any token, disk, or device in the likeness or similitude of any coin of the United States or of a foreign country, counterfeit coins, counterfeited or altered obligations or securities, **or plates, dies, or other apparatus which may be used in making any of the foregoing**, shall be seized when brought into the United States and delivered to the nearest representative of the United States Secret Service with a report of the facts. Metal die stamps bearing the likeness of a Canadian $2 coin are precisely such apparatus. Seditious matter, white phosphorus matches, and non-exempt switchblades are prohibited or restricted under other provisions and are not routed to the Secret Service.

Fabric is exported from the United States and, in the foreign plant, garment parts are cut from it according to pattern before being sewn together. Under 19 CFR 10.16, is the cutting an operation incidental to assembly?

1. Yes, cutting to pattern is incidental to the assembly abroad
2. No, cutting garment parts to pattern is not incidental ✓
3. Yes, because cutting removes only excess material there
4. No, because packing abroad disqualifies the assembled goods

Why: Cutting of garment parts according to pattern from exported material is listed at 19 CFR 10.16(c)(2) among the operations not considered incidental to assembly, and the opening words of paragraph (c) spell out the effect: such an operation will preclude application of the exemption to the article. The competing pull comes from 19 CFR 10.16(b)(4), which does treat trimming, filing, or cutting off of small amounts of excess materials as incidental, but cutting components to pattern is fabrication of the component rather than removal of surplus. Packing abroad is irrelevant here, since paragraph (f) says assembled articles otherwise qualifying are not disqualified by being packaged abroad.

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?

1. The client's surety on a particular entry ✓
2. The freight forwarder on a particular shipment
3. The broker's other clients
4. The client's exporter

Why: 19 CFR 111.24 makes client records confidential and bars the broker from disclosing them to anyone other than the clients themselves, their surety on a particular entry, DHS representatives, and other duly accredited U.S. officers or agents — absent a subpoena, court order, or the client's written authorization. Because the client here directed in writing that the records stay confidential and the information is not available from a public source, the only permissible recipient on this list is the client's surety on a particular entry. Freight forwarders, other clients of the broker, and the client's exporter are all outside the enumerated group.

A person desiring to make entry cannot present a bill of lading or air waybill, but states that he intends to produce a carrier's certificate. Under 19 CFR 141.15, is a bond for the production of a bill of lading required?

1. Yes, a bond on Customs Form 301 with § 113.69 conditions
2. Yes, but only with Commissioner authorization
3. No bond, but entry must await the bill of lading
4. No bond, because section 484(c) does not apply ✓

Why: Read the second and third sentences of 19 CFR 141.15(a) together. The bond is "for the production of a bill of lading or air waybill, unless the person making entry intends to produce a carrier's certificate or certified duplicate bill of lading or air waybill," and in that case "no bond is required because section 484(c) does not apply to entries made on a carrier's certificate or certified duplicate bill of lading or air waybill." The Commissioner's role described at the end of that paragraph is a different situation entirely — the port director requests authority only when he is in doubt about the propriety of accepting entry on such a bond. Nothing in the section defers entry itself.

At what point in time is the tariff classification, which is controlled by principal use in the United States, determined?

1. At, or immediately prior to, the date of exportation.
2. At, or immediately prior to, the date of importation. ✓
3. At, or immediately after, the date the goods are entered.
4. Within three (3) years after the date the goods are entered.

Why: Additional U.S. Rule of Interpretation 1(a) provides that a tariff classification controlled by use (other than actual use) is to be determined by the principal use in the United States at, or immediately prior to, the **date of importation**, of goods of that class or kind to which the imported goods belong. Exportation, entry, and any post-entry three-year window are therefore the wrong reference points - the date of importation fixes the principal use inquiry.

What is the CLASSIFICATION of an artificial floral bouquet that consists of purple and pink flowers made from natural ostrich feathers that are bound to wooden stems with floral tape?

1. 6701.00.3000
2. 6701.00.6000
3. 6702.90.1000 ✓
4. 6702.90.6500

Why: Heading 6701 covers skins and other parts of birds with their feathers and articles thereof, but it expressly does not reach artificial flowers; artificial flowers, foliage and fruit and articles made of them are provided for in heading 6702. Applying GRI 1 and GRI 6 (with GRI 3(b) confirming the feathers impart the essential character over the wooden stems and tape), the bouquet falls in 6702.90 as artificial flowers of other materials, and 6702.90.1000 is the breakout for those of feathers. The 6701 options fail because the goods are finished artificial flowers rather than feather articles as such, and 6702.90.6500 covers artificial flowers of materials other than feathers.

Merchandise is shipped to a Party's territory where it undergoes only simple repackaging before export to the United States. Under 19 CFR 10.770, does that operation make the merchandise a new or different article of commerce?

1. No, simple packaging does not create a new article of commerce ✓
2. Yes, any packaging in the territory of a Party confers origin
3. Yes, if the packaging materials originate within a Party's territory
4. No, unless the value-content requirement is also satisfied

Why: 19 CFR 10.770(c) closes off the 'new or different article of commerce' route before value content is ever reached, providing that a good will not be considered a new or different article of commerce by virtue of having undergone simple combining or packaging operations, or mere dilution with water or another substance that does not materially alter the characteristics of the good. Since the paragraph (a)(2) route depends on the good being a new or different article, failing this test ends the inquiry, which is why conditioning the answer on the 35 percent computation is wrong even though that computation is real. Paragraph (c) also directs that the principles and examples in section 10.195(a)(2) apply equally, so that is where to look for worked illustrations.

What is the maximum number of calendar days that the designated recordkeeping contact has to make the records available to CBP, if the request does NOT specify additional time to respond?

1. 10
2. 15
3. 30 ✓
4. 60

Why: Records demanded by CBP must be produced within 30 calendar days: 19 CFR 163.6(a) states that "the entry records shall be produced within 30 calendar days of receipt of the demand or within any shorter period as Customs may prescribe," and a person needing more time must request a specific extension before the due date. The broker's designated recordkeeping contact under 19 CFR 111.21(d) is bound by that same 30-day period, so 30 is the maximum absent additional time granted by CBP.

Merchandise entered for consumption but not yet released from Customs custody was removed from the port of intended release because of overcarriage. Under 19 CFR 141.69, the rates in effect at the time of the original entry apply if the merchandise is returned to that port within what period after removal?

1. Within 15 days after removal
2. Within 30 days after removal
3. Within 60 days after removal
4. Within 90 days after removal ✓

Why: A 90-day return window is set by 19 CFR 141.69(c), which lists overcarriage alongside inaccessibility, strike, act of God, and unforeseen contingency as qualifying causes of removal. Two conditions ride along that the stem does not resolve: the merchandise must be identified with the original entry by the usual Customs examination and by any documentary evidence of its movement that CBP may reasonably require, and a new entry is required unless the original entry is unliquidated and the consignee is the same person at original importation and at return. The 90 days answers the rate question, not the paperwork question.

An importation consists of atomic energy source material together with equipment and devices for utilizing fissionable material. Under the enforcement-for-other-agencies provision, whose laws is the Customs Service enforcing as to this merchandise?

1. Those administered by the Nuclear Regulatory Commission ✓
2. Those administered by the Department of Energy field offices
3. Those administered by the Office of Foreign Assets Control
4. Those administered by the Drug Enforcement Administration

Why: 19 CFR 161.2(a)(4) assigns importations and exportations of atomic energy source material, fissionable material, and equipment and devices for utilizing or producing fissionable material to laws administered by the Nuclear Regulatory Commission. The Department of Energy is a plausible-sounding substitute but appears nowhere in the section. The two other agencies offered do appear in 19 CFR 161.2(a), but for different commodities, and each was checked: the Office of Foreign Assets Control appears in (a)(3) for transactions involving identified goods, services, and technology with countries designated as subject to economic sanctions, and the Drug Enforcement Administration appears in (a)(2) for controlled substances. Matching the commodity to the right subparagraph is the whole exercise here.

A traveler who has only one arm is carrying on his person a switchblade knife with a 2.5-inch blade. The knife is not a ballistic knife. Is the importation permitted?

1. Yes; the exception covers this knife on this person ✓
2. No; the exception applies only to blades under 2 inches
3. No; the exception requires an Armed Forces contract
4. No; the exception covers ballistic knives exclusively

Why: All three conditions of 19 CFR 12.98(c) are satisfied: the knife is "other than a ballistic knife," its blade does not exceed 3 inches, and it "is in the possession of and is being transported on the person of an individual who has only one arm." Note that the paragraph excludes ballistic knives rather than requiring them, so an answer reversing that exclusion inverts the rule while sounding like it. The Armed Forces conditions belong to paragraphs (a) and (b) as independent alternatives and are not additional requirements layered onto (c).

Number One Car Company (NOCC), an electric vehicle manufacturer, has asked Jack Frost Customshouse Broker (Jack Frost) to classify imported battery assemblies intended for use in electric vehicles in the Harmonized Tariff Schedule (HTS) in advance of the next shipment. NOCC tells Jack Frost that it typically classifies the battery assemblies under 8507.60.0010 / 3.4%. Jack Frost has the following information. • the nominal voltage is 696.96 V • the nominal energy is 77.4 kWh • the weight is 480 kg. What additional information does Jack Frost need to confirm that 8507.60.0010 is the correct classification?

1. The battery chemistry.
2. The HTS subheading of the vehicle into which the battery assembly will be installed.
3. The shape of the battery.
4. Both A and B ✓

Why: Subheading 8507.60 covers lithium-ion accumulators specifically, so under GRIs 1 and 6 Jack Frost must first confirm the battery **chemistry** - voltage, energy rating, and weight alone do not establish that the assembly is lithium-ion rather than some other chemistry classified elsewhere in heading 8507. The statistical breakout 8507.60.0010 is further limited to batteries of a kind used as the primary source of electrical power for electrically powered vehicles of a specified motor-vehicle heading, so he also needs the HTS subheading of the vehicle in which the assembly will be installed. Both pieces of information are required, so 'Both A and B' is correct; shape is not a criterion anywhere in the provision.

What is the CLASSIFICATION of an apparatus for electroplating flatware made up of silver anodes, an electrolytic solution, and a direct-current (DC) power source? The apparatus is designed for silver anodes and brass (copper-zinc) flatware cathodes to be immersed in the electrolytic solution. The apparatus functions by applying a positively- charged electric current through the anodes and a negatively-charged current through the cathodes. These charges cause silver atoms to dissolve in the electrolytic solution and move toward the negatively-charged brass flatware, thereby coating the brass flatware with silver.

1. 7407.21.3000
2. 8543.30.9080 ✓
3. 8215.10.0000
4. 7106.92.5000

Why: Heading 8543, HTSUS covers electrical machines and apparatus having individual functions not specified or included elsewhere in Chapter 85, and subheading 8543.30 provides specifically for machines and apparatus for electroplating, electrolysis or electrophoresis. The described apparatus — silver anodes, an electrolytic solution and a DC power source working together to deposit silver on brass cathodes — is precisely an electroplating apparatus, so it is classified in 8543.30.9080. Subheadings 7407.21.3000 (copper bars and rods), 8215.10.0000 (sets of flatware) and 7106.92.5000 (semimanufactured silver) describe materials or finished goods rather than the machine that performs the plating.

Sean Reno Fashion (Sean Reno) is a clothing manufacturer in Chicago that imports textiles and apparel products. As part of a planned expansion of its sportwear line, Sean Reno applies to CBP for a continuous bond to secure multiple entries of merchandise over the coming year. In the calendar year prior to filing its application, Sean Reno imported merchandise under single transaction bonds at several different ports of entry. Which of the following is information that Sean Reno must include in its continuous bond application?

1. Copies of the single transaction bonds that Sean Reno used in the previous calendar year.
2. A specific description of the merchandise to be entered under the continuous bond, including estimated value and anticipated classification.
3. The total amount of ordinary customs duties (including any taxes required by law to be treated as duties), plus the estimated amount of any other tax or taxes on the merchandise to be collected by CBP, accruing on all merchandise Sean Reno has imported during the calendar year preceding the date of the application. ✓
4. A statement of the duties and taxes Sean Reno estimates will accrue on all importations during the current year.

Why: 19 CFR 113.11(b)(1) states what a continuous bond application must contain: the general character of the merchandise to be entered, and under (b)(1)(ii) the total amount of ordinary customs duties (including taxes required by law to be treated as duties) plus the estimated amount of any other tax or taxes on the merchandise to be collected by CBP, accruing on all merchandise imported by the principal **during the calendar year preceding the date of the application**. Because Sean Reno did import in the preceding calendar year, that historical figure - not a current-year estimate - is what must be supplied; the estimate option in (b)(1)(ii) applies only where no imports were made in the prior calendar year. Copies of prior single transaction bonds and a specific description with values and anticipated classifications are not required by the section.

Commerce initiates a/an _____ investigation when a proper and complete petition is filed on behalf of an affected United States industry, alleging that foreign merchandise is being sold in the United States at “less than fair value” and that such sales are materially injuring, or threatening to materially injure, a United States industry.

1. Scope
2. Antidumping ✓
3. Countervailing
4. Sunset

Why: An **antidumping** investigation is the proceeding the Department of Commerce initiates on a properly filed petition alleging that foreign merchandise is being sold in the United States at less than fair value and that such sales are materially injuring or threatening material injury to a U.S. industry - the framework administered under 19 CFR Part 351. A countervailing duty investigation addresses countervailable subsidies rather than less-than-fair-value sales; a scope proceeding determines whether particular goods fall within an existing order; and a sunset review is the periodic revocation review, not an initial investigation.

An importer enters exposed motion picture film that is not claimed free of duty as American goods returned. On what form must the importer certify that the film contains no obscene or immoral matter?

1. Customs Form 3311, in the space designated "Remarks"
2. Customs Form 4647, issued by the port director
3. Customs Form 3291, filed by the importer of the films ✓
4. Customs Form 7501, in the entry summary remarks block

Why: Certification under 19 CFR 12.41(a) is made on Customs Form 3291 by default; Form 3311 becomes available only in the narrower situation the same paragraph describes, where "imported films are claimed to be free of duty as American goods returned," and then in the space designated "Remarks." Because the stem removes that claim, the 3311 route is closed. Forms 7501 and 4647 appear nowhere in this section, though both are familiar enough elsewhere to look plausible.

Domestic status may be granted to any of the following types of merchandise in a Foreign Trade Zone, EXCEPT:

1. Merchandise that is a growth, product, or manufacture of the United States on which all applicable internal-revenue taxes have been paid.
2. Merchandise that was previously imported from Belgium and on which duty and tax have been paid.
3. Merchandise from Greece that was previously entered free of duty and tax.
4. Merchandise that is previously imported from France, on which applicable duties, taxes, or fees have not been paid. ✓

Why: 19 CFR 146.43(a) limits domestic status to merchandise that is the growth, product or manufacture of the United States on which all applicable internal-revenue taxes have been paid, merchandise previously imported on which duty and tax have been paid, or merchandise previously entered free of duty and tax. Goods previously imported from France on which applicable duties, taxes or fees remain unpaid satisfy none of those three descriptions, so option D is the exception. The other three track paragraphs (a)(1), (a)(2) and (a)(3) exactly.

A shipment moves under a transportation and exportation entry, and part of the in-bond movement will be made by barge. The in-bond application was approved and CBP transmitted movement authorization after the conveyance arrived at the origination port. Within what period must the merchandise be delivered to CBP at the port of exportation?

1. 60 days from movement authorization ✓
2. 30 days from movement authorization
3. 15 days from movement authorization
4. 90 days from movement authorization

Why: 19 CFR 18.1(i)(1) sets a 30-day maximum in-transit time generally, but merchandise transported via barge for all or part of the in-bond movement must be delivered within 60 days, measured from conveyance arrival at the origination port or the date CBP provides movement authorization, whichever is later. Because authorization came after arrival in this scenario, the period runs from the authorization date. The 30-day option is the tempting one because it applies the general rule and ignores the barge exception.

An individual broker has held a license through several complete triennial periods and is not in voluntary suspension. What is the minimum amount of qualifying continuing broker education the broker must complete each triennial period?

1. At least 36 credits ✓
2. At least 45 credits
3. At least 12 credits
4. At least 24 credits

Why: 19 CFR 111.102(b) requires all individual brokers subject to the continuing broker education requirement to complete at least 36 continuing education credits of qualifying education each triennial period. Smaller figures such as 12 credits describe no threshold in the regulation; the only variation from 36 is the prorated calculation that applies upon reinstatement following a voluntary suspension under 19 CFR 111.52.

Bales of tobacco contain both filler leaf and wrapper leaf, with wrapper making up 40 percent of the contents of each bale. Under 19 CFR 141.89, how must these bales be invoiced?

1. As filler, since filler is the greater share
2. As unclassified, pending CBP examination
3. As mixed, since both leaf types are present
4. As wrapper, since wrapper exceeds 35 percent ✓

Why: 19 CFR 141.89(a) provides, in its tobacco entry, that bales containing only filler leaf are invoiced as filler, bales containing filler and wrapper but not more than 35 percent wrapper are invoiced as mixed, and bales containing more than 35 percent wrapper are invoiced as wrapper. At 40 percent wrapper these bales cross that 35 percent threshold and must be invoiced as wrapper; “mixed” is wrong because it applies only at 35 percent wrapper or less, regardless of which leaf is the larger share.

CBP sends an individual broker a written request for the documentation supporting continuing education completed during the last triennial period, and the broker receives it on May 4. By when must the broker make that information and documentation available to CBP?

1. On or before 60 calendar days from receipt
2. On or before 30 calendar days from receipt ✓
3. On or before 10 business days from receipt
4. On or before 90 calendar days from receipt

Why: 19 CFR 111.102(d)(2) requires the individual broker to make the described information and documentation available on or before 30 calendar days from the date of receipt of CBP's request. The three-year figure that some candidates recall is the retention period in 19 CFR 111.102(d)(1), which runs from submission of the status report and is not the response deadline.

A formal consumption entry is liquidated. Estimated duties, fees and taxes deposited, including a supplemental deposit, total $4,318.00. The total duties, fees, taxes and interest assessed at liquidation are $4,335.00. This is the original liquidation and no court decision is involved. What happens?

1. A bill for $17.00 issues and the entry is endorsed to show the difference
2. The difference is disregarded and the entry is endorsed 'as entered' ✓
3. The difference is disregarded but a bill still issues for the interest
4. A bill for $17.00 issues only if the importer requests reliquidation

Why: Applying 19 CFR 159.6(a): the net difference is $4,335.00 - $4,318.00 = $17.00, which is less than $20, so the difference will be disregarded and the entry endorsed 'as entered.' Paragraph (a) reaches exactly this comparison - the total of duties, fees, taxes and interest assessed in liquidation against the total estimated duties, fees and taxes deposited, including any supplemental deposit - for any entry other than an informal, mail, or baggage entry. Interest is inside the netting rather than outside it: 19 CFR 159.6(d) directs that customs duties and fees and internal revenue taxes and interest be separately stated at liquidation but that the amounts of any differences be netted when applying the $20 minimum. Had the difference reached $20, 19 CFR 159.6(c) would have required the entry to be endorsed to show it and a bill issued.

No later than once every five years, a __________ occurs when the Secretary of the Department of Commerce determines whether antidumping or countervailable subsidies would be likely to continue or resume if an order were revoked or a suspended investigation were terminated.

1. Changed circumstance review
2. Sunset Review ✓
3. Preliminary determination
4. Termination of investigation

Why: 19 CFR 351.218(a) describes sunset reviews under section 751(c) of the Act: no later than once every five years the Secretary of Commerce must determine whether dumping or countervailable subsidies would be likely to continue or resume if an order were revoked or a suspended investigation were terminated. A changed circumstances review is triggered by new information rather than by the five-year clock, a preliminary determination is an early stage of an original investigation, and termination of an investigation is a different disposition entirely.

What is the maximum value for a shipment of merchandise not qualifying for an exemption or exception, that may be entered as an informal entry (Type 11)?

1. $250.00.
2. $800.00.
3. $1,500.00.
4. $2,500.00. ✓

Why: 19 CFR 143.21(a) makes informal entry available for "shipments of merchandise not exceeding $2,500 in value," with a $250 limit for certain Chapter 99 subchapter III and IV articles. Absent an exemption or exception, $2,500 is the ceiling for a Type 11 informal entry. The $800 figure is the section 321 de minimis threshold, which is a different provision.

An importer argues that its country of origin marking need only survive long enough for the goods to clear customs. How does the marking regulation answer?

1. The marking must last until the goods are entered
2. The marking must last until first wholesale delivery
3. The marking must last until the goods are appraised
4. The marking must last until the ultimate purchaser ✓

Why: Permanence is measured against the consumer rather than the port, since 19 CFR 134.41(b) provides that the degree of permanence "should be at least sufficient to insure that in any reasonably foreseeable circumstance, the marking shall remain on the article (or its container) until it reaches the ultimate purchaser unless it is deliberately removed." The same paragraph adds two operational tests confirming the point, that the marking "must survive normal distribution and store handling" and that the ultimate purchaser "must be able to find the marking easily and read it without strain." Entry, appraisement, and wholesale delivery all occur upstream of the ultimate purchaser, so each of the other answers stops the requirement short.

Which answer describes a material which is classifiable within Heading 3006, HTSUS?

1. Plasters specially calcined or finely ground for use in dentistry
2. Blood albumin not prepared for therapeutic or prophylactic uses
3. Sterile absorbable surgical or dental hemostatics, sterile surgical or dental adhesion barriers, whether or not absorbable ✓
4. Ketones and quinones, whether or not with other oxygen function, and their halogenated, sulfonated, nitrated, or nitrosated derivatives

Why: Note 4 to Chapter 30, HTSUS is an exhaustive list of what heading 3006 covers, and paragraph (c) of that note names sterile absorbable surgical or dental hemostatics and sterile surgical or dental adhesion barriers, whether or not absorbable. Option C tracks that language directly. Plasters specially calcined or finely ground for use in dentistry are provided for in heading 2520, blood albumin not prepared for therapeutic or prophylactic uses falls in heading 3502, and ketones and quinones are goods of heading 2914.

Of the four choices below, which is the best CLASSIFICATION of a rectangular- shaped box/container made of 100% tinplate steel? The box measures 6 inches long by 4.25 inches wide by 2 inches high, and the top of the box is hinged. The box is used for children to hold and organize crayons and playthings.

1. 7326.90.1000 ✓
2. 7326.90.3500
3. 7326.90.8688
4. 8007.00.5000

Why: Heading 7326 covers other articles of iron or steel, and within it 7326.90.1000 is the specific provision for such articles of tinplate. A hinged rectangular storage box made entirely of tinplate steel is described by that provision. 7326.90.3500 is not a residual breakout - it covers “containers of a kind normally carried on the person, in the pocket or in the handbag,” and a 6 by 4.25 by 2 inch box for holding crayons and playthings is not that kind of container - while 7326.90.8688 is the residual “Other,” which yields to the more specific tinplate provision. Heading 8007 (other articles of tin) is inapplicable because tinplate is steel with a thin tin coating and the article remains one of steel.

A U.S. trademark owner applies for Lever-rule protection against gray market articles that are physically and materially different. When does the application for trademark protection take effect?

1. On the date the application is first received by CBP
2. On the date CBP publishes the request notice
3. When CBP issues its determination on protection ✓
4. Thirty days after the Customs Bulletin notice

Why: Timing is deferred by 19 CFR 133.2(f): CBP first publishes a notice listing the trademarks and specific products for which gray market protection has been requested, examines the request, and only then issues a determination, because "for parties requesting protection, the application for trademark protection will not take effect until CBP has made and issued this determination." The first publication is a notice of the request rather than a grant, which is what makes the publication-date answer so attractive. A second Customs Bulletin notice follows if protection is granted, but the effective date is the determination, not any waiting period measured from publication.

An individual broker subject to the continuing broker education requirement submits a triennial status report but omits the report and certification of compliance with that requirement. The broker had in fact completed the required credits. CBP notifies the broker of the omission. What must the broker do under 19 CFR 111.104?

1. Complete an additional set of continuing education credits within 30 days
2. File a written request for review with the Office of Trade in 30 days
3. Submit a corrected status report within 30 calendar days of the notice ✓
4. Await the suspension order and take corrective action within 120 days

Why: 19 CFR 111.104(b)(1) fits these facts precisely. Because the broker had in fact completed the required credits and failed only to report and certify, the corrective step is a corrected status report reflecting compliance, filed on or before 30 calendar days from the notification. Paragraph (b)(2) is the neighbouring path, reserved for the broker who had not completed the credits when the report was due; that broker must both complete the credits and file a corrected report inside the same window. Requesting review is not a remedy this section offers, and waiting for a suspension order forfeits the paragraph (b) window altogether, since paragraph (c) makes suspension follow automatically once the 30 days pass without corrective action.

What is the CLASSIFICATION of an injectable liquid derived from a combination of Botulinum toxin (99.9%), Albumin Human (0.025%), and sodium chloride (0.075%) imported in measured doses and prescribed by a doctor to treat humans suffering from chronic migraine headaches?

1. 3002.90.5250 ✓
2. 3304.99.5000
3. 3502.90.0000
4. 3924.90.5650

Why: The product is an injectable pharmaceutical consisting overwhelmingly of botulinum toxin, put up in measured doses and prescribed to treat chronic migraine. Toxins and similar products are goods of Chapter 30, and the product classifies in 3002.90.5250. Heading 3304 covers beauty and skin-care preparations, which a prescription therapeutic for migraine is not; Note 1 to Chapter 35 confines heading 3502 to albumins as such, and the 0.025 percent human albumin here is only a stabiliser, not the article being imported; heading 3924 covers plastic household articles and is simply inapplicable.

USA Corporation imports a specialized machine that is disassembled and split into several shipments for delivery purposes. A specific tool is used to produce this machine, and the cost of that tool is added to the machine's value as an assist. USA Corporation decides to pay duties on the tool's entire value with the first shipment, rather than to split the tool's value between all of the machine's entries. What is the Customs term for this allocation of assists?

1. Inclusion
2. Deduction
3. Proration
4. Apportionment ✓

Why: 19 CFR 152.103(e)(1) is captioned "Apportionment" and provides that the value of an assist is apportioned to the imported merchandise in a reasonable manner appropriate to the circumstances and in accordance with generally accepted accounting principles. Where the entire anticipated production using the assist is for export to the United States, the importer may have the total value apportioned over the first shipment if it wishes to pay duty on the entire value at once, over the units produced up to the first shipment, or over the entire anticipated production. Choosing to load the tool's whole value onto the first entry is therefore an exercise of apportionment, which is the term the regulation uses.

An individual broker's license has been suspended for failure to report and certify compliance with the continuing broker education requirement. Under 19 CFR 111.104, within what period from the issuance date of the order of suspension must the broker take corrective action to avoid revocation?

1. 30 calendar days from the issuance date of the order
2. 60 calendar days from the issuance date of the order
3. 120 calendar days from the issuance date of the order ✓
4. 180 calendar days from the issuance date of the order

Why: 19 CFR 111.104(d) starts the second of the two clocks in this section, and it runs for 120 calendar days. Where the license has been suspended under paragraph (c) and the broker still fails to take corrective actions on or before 120 calendar days from the issuance date of the order of suspension, CBP will take actions to revoke the license. The 30-day figure that dominates paragraphs (b) and (c) is the pre-suspension window, which is what makes it the natural wrong answer once suspension has already happened. Paragraph (d) closes with a point of real practical importance: revocation on this ground is without prejudice to filing an application for a new license.

An importer's check tendered for $300 in estimated duties on an entry secured by a continuous basic importation and entry bond is returned unpaid by the financial institution, and there is no other default. Under the bond conditions, what liquidated damages do the obligors agree to pay?

1. Liquidated damages of $1,200
2. Liquidated damages of $1,000 ✓
3. Liquidated damages of $600
4. Liquidated damages of $300

Why: 19 CFR 113.62(n)(4) provides that a default on the condition in paragraph (a)(1)(i) alone carries liquidated damages equal to two times the unpaid duties, taxes and charges estimated to be due, or $1,000, whichever is greater, and a default is presumed when a monetary instrument is returned unpaid. Two times $300 is $600, so the greater figure of $1,000 controls. The $600 option is the tempting one because it applies the multiplier without comparing the result to the stated floor.

Number One Car Company (NOC Co.) is an existing importer whose account is not in frozen or void status with the CBP Office of Finance Revenue Division and whose account is assigned to the Automotive and Aerospace Center of Excellence and Expertise (A&A Center). NOC Co.’s broker is Jack Frost Customhouse Broker (Jack Frost). Jack Frost is licensed and has his National Permit through Los Angeles/Long Beach and his processing Center is the Electronics Center of Excellence and Expertise (Electronics Center). NOC Co. has advised Jack Frost that it is adopting an alternate name of NOC Co. as it has permission from its State of incorporation. Which of the following correctly states a method Jack Frost can use to notify CBP of NOC Co.'s adoption of an alternate name?

1. Jack Frost will email a completed and signed Customs Form 5291 showing the NOC Co.’s alternate name to the A&A Center.
2. Jack Frost will use NOC Co.'s ACE Portal account to create an Importer Certifying Statement showing the adoption of the alternate name.
3. Jack Frost will email a completed and signed Customs Form 5106 showing NOC Co.'s alternate name to the A&A Center. ✓
4. Jack Frost will follow the change of name instructions found in 19 CFR 111.30(c) and email the Electronics Center with NOC Co.'s alternate name.

Why: Adoption of an alternate (also known as 'doing business as') name by an importer is an importer-identity change, so it is made on CBP Form 5106 and submitted to the importer's assigned Center of Excellence and Expertise - here the A&A Center, which is NOC Co.'s Center, not Jack Frost's Electronics Center. CBP Form 5291 is a power of attorney form, not a name-change vehicle, and 19 CFR 111.30(c) governs a change in the *broker's* own name, not the client's. The ACE Portal certifying-statement route is also unavailable because that mechanism does not create an alternate importer name.