1.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?
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Correct answer: c) 30
Reference: 19 CFR 111.23
Source: U.S. Customs and Border Protection, exam of October 2024
2.In the event of a cyberbreach of electronic records relating to customs business, when must the customs broker report the breach to CBP following the discovery of the breach?
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Correct answer: a) Within 72 hours
Reference: 19 CFR 111.21(b)
Source: U.S. Customs and Border Protection, exam of April 2026
3.Mr. Jones, a buying agent with power of attorney for importer American Widgets, employs licensed customs broker Ms. Smith for the transaction of customs business and Speedy Freight Forwarder for the transportation of merchandise on behalf of American Widgets. Mr. Jones does not have a customs broker license. American Widgets' imported merchandise was not purchased on a delivered duty-paid basis. Ms. Smith executed a power of attorney directly with American Widgets. Of the following choices, what additional action must Ms. Smith take for billing purposes?
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Correct answer: a) Ms. Smith must transmit either a copy of her bill for services rendered or a copy of the entry to American Widgets, unless American Widgets waives transmittal.
Reference: 19 CFR 111.36(a)
Source: U.S. Customs and Border Protection, exam of October 2025
4.What is the maximum penalty for any one incident of conducting Customs business without a license?
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Correct answer: b) $10,000.00
Reference: 19 CFR Appendix C to Part 171 II.B.1.
Source: U.S. Customs and Border Protection, exam of April 2023
5.Which ONE of the following is subject to mandatory seizure under 19 USC 1595a(c)?
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Correct answer: a) Merchandise that is stolen, smuggled, or clandestinely imported or introduced.
Reference: 19 CFR 162.23(a)
Source: U.S. Customs and Border Protection, exam of October 2024
6.Newly licensed Customs broker Pat Smith (Smith or they/their) received their individual Customs broker license on August 1, 2022. On December 19, 2022, Smith received their national permit and began conducting customs business as a sole proprietor. What month and year will Smith's next status report be due and how much will the triennial status report fee be?
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Correct answer: e) February 2024; $100.00
Reference: 19 CFR 111.30(d); 19 CFR 111.96(d)
Source: U.S. Customs and Border Protection, exam of April 2023
7._____ means an activity performed by a business entity to ensure that documents for a related business entity or entities are prepared and filed with CBP using "reasonable care", but such activity does not extend to the actual preparation or filing of the documents or their electronic equivalents.
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Correct answer: a) Corporate compliance activity
Reference: 19 CFR 111.1
Source: U.S. Customs and Border Protection, exam of October 2025
8.A licensed broker must report or provide the following to CBP EXCEPT:
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Correct answer: c) A newly hired employee's name, date of birth, place of birth, current home address, and misdemeanor arrest records.
Reference: 19 CFR 111.28(b); 19 CFR 111.30
Source: U.S. Customs and Border Protection, exam of April 2025
9.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?
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Correct answer: b) The customs broker is required to maintain copies of the submitted records.
Reference: 19 CFR 163.2(a); 19 CFR 163.3
Source: U.S. Customs and Border Protection, exam of April 2025
10.How long must a broker retain records relating to the withdrawal of merchandise from a bonded warehouse from the date of the last withdrawal under the entry?
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Correct answer: d) 5 years
Reference: 19 CFR 111.23(b)
Source: U.S. Customs and Border Protection, exam of April 2022
11.Which of the following is NOT an example of diligence in correspondence and paying monies?
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Correct answer: d) Brokers must file a status report with CBP every three (3) years accompanied by the prescribed fee.
Reference: 19 CFR §111.29(a)
Source: U.S. Customs and Border Protection, exam of April 2023
12.A customs broker license applicant has been denied a customs broker license. Which of the following best describes the next action the applicant must take to initiate an appeal?
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Correct answer: b) File with the appropriate Executive Director, Office of Trade, in writing, additional information or arguments in support of the application. Such information and arguments must be received by the Executive Director within sixty (60) calendar days of the denial.
Reference: 19 CFR 111.17(a)
Source: U.S. Customs and Border Protection, exam of May 2024
13.At the conclusion of the 2024-to-2027 triennial reporting period, Joe Slacker, a licensed customs broker and part-time college student, completed eight hours of accredited continuing broker education and two semesters of supply chain management college coursework. As a customs broker he was required to complete 20 hours of qualifying continuing broker education. Mr. Slacker submitted a triennial status report, but he failed to report or certify compliance with the continuing broker education requirement. What must Mr. Slacker do to rectify his non-compliance and maintain his license?
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Correct answer: c) Complete the required number of qualifying continuing broker education credits and submit a corrected status report within 30 calendar days of the issuance of CBP's notice of failure to report and certify compliance.
Reference: 19 CFR 111.104
Source: U.S. Customs and Border Protection, exam of October 2025
14.The grantor of a customs power of attorney (POA) to a licensed customs brokerage business is a limited partnership and imports textile goods. The grantor also has a POA with a freight forwarder with a special grant allowing the freight forwarder to appoint subagents, including customs brokers. Which of the following statements is legally FALSE?
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Correct answer: a) The names of all general partners and limited partners in the limited partnership must be listed on the POA agreement between the customs broker and the limited partnership.
Source: U.S. Customs and Border Protection, exam of October 2024
15.ZX Customs Brokers, Inc. (ZX) is a customs broker that is a corporation. George Forest, an individually licensed customs broker, is ZX’s Vice President of Compliance and is the qualifier for ZX’s license and national permit. On May 1, 2025, the Executive Director, Office of Trade, CBP accepts Mr. Forest’s voluntary suspension of his individual license for one year effective May 5, 2025 due to health issues. ZX’s Import Manager, Jayne Smythe, is an individually licensed broker, but she is not a duly appointed officer of ZX. Which of the following statements is FALSE?
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Correct answer: a) ZX may notify CBP that it is appointing Import Manager Smythe as its national permit qualifier and continue conducting customs business until the annual permit expires on December 31, 2025.
Source: U.S. Customs and Border Protection, exam of October 2025
16.A customs broker discovers that a client has omitted information from an affidavit. The broker believes the client omitted the information by mistake and advises the client promptly of the omission and the proper corrective actions required. What else must the broker do?
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Correct answer: c) Retain a record of their communication with the client.
Reference: 19 CFR 111.39(c)
Source: U.S. Customs and Border Protection, exam of April 2026
17.Below are the basic requirements to obtain an individual broker’s license EXCEPT:
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Correct answer: c) Be at least 18 years old at the time of submission of license application
Reference: 19 CFR § 111.11(a)1, 3 ,4(2)
Source: U.S. Customs and Border Protection, exam of October 2021
18.Which of the below statements is FALSE?
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Correct answer: b) A broker may allow his license, permit or name to be used by or for any unlicensed person (including a broker whose license or permit is under suspension), except his own employees authorized to act for him, in the solicitation, promotion or performance of any customs business or transaction.
Reference: 19 CFR § 111.37, 19 CFR § 111.19
Source: U.S. Customs and Border Protection, exam of October 2021
19.An individually licensed broker subject to continuing broker education requirements completed a qualifying course on April 15, 2027. The broker is maintaining appropriate records pertaining to their continuing education in accordance with applicable CBP regulations. The broker certified completion of their continuing education hours with the filing of their triennial status report on February 1, 2030. For how long is the broker required to maintain a record of their April 15, 2027, continuing education course - which of the following dates identifies the right timeframe?
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Correct answer: b) February 1, 2033
Reference: 19 CFR 111.102(d)(1); 19 CFR 163.4(a)
Source: U.S. Customs and Border Protection, exam of October 2025
20.Which of the following scenarios demonstrates that a customs broker may have failed to maintain responsible supervision and control over their customs business?
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Correct answer: a) John Smith Customs Brokerage (Smith) terminated Sally Johnson's (Johnson) employment. Johnson was listed in Smith's Automated Commercial Environment (ACE) portal account as the knowledgeable point of contact to be available to CBP during and outside of normal operating hours. Smith updated Johnson's employee record but did not designate a new knowledgeable point of contact in ACE. CBP has been unable to contact Smith for over six months.
Reference: 19 CFR 111.3(b); 19 CFR 111.28(a)
Source: U.S. Customs and Border Protection, exam of May 2024
21.Any person who pays by check any duties, taxes, fees, interest, or other charges or obligations due to CBP which are not guaranteed by a Customs bond shall be assessed a charge of __________ for each check which is returned unpaid by a financial institution for any reason (bounced check), except the charge will not be assessed if it is shown that the maker of the check was not at fault in connection with the return of the check.
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Correct answer: e) $30.00
Reference: 19 CFR § 21.4(e)
Source: U.S. Customs and Border Protection, exam of October 2021
22.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?
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Correct answer: c) Jack Frost will email a completed and signed Customs Form 5106 showing NOC Co.'s alternate name to the A&A Center.
Reference: ACE BRPD Chapter 23, Section 23.6 and 23.10
Source: U.S. Customs and Border Protection, exam of May 2024
23.Of the four choices below, which business relationship may Tracy, a licensed customs broker and sole proprietor of her brokerage, maintain without violating CBP regulations?
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Correct answer: a) Tracy transacts customs business on behalf of her client, X-Logistics, a bona fide importer. At the time when she entered into the broker-client relationship, Tracy knew that X-Logistics was a notoriously disreputable importer.
Source: U.S. Customs and Border Protection, exam of April 2026
24.An individual's customs broker license is suspended by operation of law for failure to file a triennial status report and pay the fee, and the individual has received the notice of suspension as prescribed by regulation. When will the license be revoked by operation of law if the individual fails to file the report and pay the fee?
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Correct answer: c) On the 61st calendar day after the date of the suspension notice.
Reference: 19 CFR 111.30 (d)
Source: U.S. Customs and Border Protection, exam of October 2024
25.Which of the following is TRUE regarding the record retention period?
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Correct answer: d) A consignee who is not the owner and appoints a customs broker shall keep a record of merchandise covered by informal entry for two (2) years from the date of the informal entry.
Reference: 19 CFR 163.4(b)(3)
Source: U.S. Customs and Border Protection, exam of May 2024