Broker Compliance: practice questions · page 2

26.Which answer choice correctly completes the following statement: Upon CBP's request, the individual broker must make available to CBP the information and documentation pertaining to the qualifying continuing broker education completed during a triennial period on or before _____.

27.Which people and/or entities must certify completion of the continuing broker education requirement with their status report required under 19 CFR 111.30(d)? i. Individually licensed brokers; ii. Partnerships with customs broker licenses; iii. Associations with customs broker licenses; iv. Corporations with customs broker licenses

28.A broker must provide specific information to the port director at each port where the broker intends to transact customs business (application for permit). That information must be provided in writing and include each of the following, EXCEPT:

29.What is the penalty for any person who intentionally transacts customs business, other than as provided in 19 CFR 111.2(a)(2), without holding a valid broker's license?

30.As a licensed customs broker and sole proprietor of her business, Janet Martin is responsible for submitting a list of the names of her current employees to the processing Center. Ms. Martin has two employees, Spencer McGill and Logan Sharpe. Ms. Martin submitted Spencer McGill’s relevant information to the processing Center within 30 calendar days of his employment in 2021 and none of Mr. McGill’s information has changed since then. Logan Sharpe is a new employee, and Ms. Martin has not yet notified the processing Center of Ms. Sharpe’s employment. Which ONE of the following lists should Ms. Martin timely provide to the processing Center to best comply with CBP regulations?

31.Within how many working days must a licensed customs broker transmit a payment to CBP of funds received from an importer after the payment due date?

32.What is the maximum time within which John Smith must report to CBP that he was terminated as the license qualifier by DC Broker, Inc.?

33.A broker receives his license through the port of Miami. The broker has a district permit in Miami. The broker ceases transacting customs business in Miami, and opens his business in the district of Tampa. Which one is INCORRECT?

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

35.Pursuant to CBP regulations regarding CBP's Office of Information Technology Security (CBP SOC), what must a broker do when there is a breach of physical records related to the broker's customs business?

36.In the case of a new employee, a customs broker must notify the CBP port director that the broker has hired the new employee within _____.

37.If a penalty is assessed or a seizure is made and less than 180 days remain before the statute of limitations may be asserted as a defense, the Fines, Penalties, and Forfeitures Officer may specify in the seizure or penalty notice a reasonable period of time, but not less than __________, for the filing of a petition for relief.

38.In which of the following circumstances is a power of attorney required when filing a protest?

39.CBP is conducting a broker audit of Interstate Dynamic Logistics CHB based upon evidence of improper use of HTSUS classification. During the audit, they request copies of Powers of Attorney (POAs) for entries related to four different Importer clients. Interstate Dynamic Logistics CHB is unable to provide the Power of Attorney for one of the three Importer Clients, one of the other POAs is not signed by the Importer Clients Guarantor, the third POA is not dated, and the guarantor on the fourth POA is on the U.S. Governments restricted persons list. What action can CBP take?

40.Which of the following will not provide for revocation of the broker’s permit?

41.John Rose has an individual customs broker license and a National Permit. Shady is importing eighteen (18) unmounted 1-carat diamonds worth $2,500.00 each for a total of $45,000.00 in his luggage. Shady is arriving from London, England, via private airplane. Shady intends to put the diamonds in rings to sell from his U.S.-based jewelry store. Rose obtains a power of attorney from Shady to be Shady’s broker, and Rose advises Shady that the diamonds do not need to be declared because the diamonds are absolutely duty free. Which statement below is TRUE with respect to any penalty that may be imposed under these circumstances?

42.Within how many days of the date of discovery that an employee is a convicted felon must a duly licensed broker seek approval of such employment from the Assistant Commissioner or be assessed a $5,000 penalty for knowingly employing any convicted felon?

43.What factor is NOT always considered by Customs when measuring if a broker is exercising responsible supervision and control over the customs business of its brokerage?

44.ZXY Importer (ZXY) is switching customs brokerages. ZXY is terminating its relationship with Slick Customs Brokerage Co. (Slick). The power of attorney contract between ZXY and Slick was granted for an unlimited time period. Which of the following parings correctly indicates who may revoke the power of attorney between ZXY as the principal and Slick as the agent?

45.How long after attaining a passing grade on the Customs Broker License Exam (CBLE) does an applicant have to apply for a Customs broker license?

46.Juan Hembra is a customs broker at ABC Brokers. He also owns and operates Hembra Hats, a brick- and-mortar store in Miami that imports and sells “Panama” hats from Ecuador. Before becoming a customs broker and importer, Juan worked for 10 years as a Border Patrol Agent for U.S. Customs and Border Protection, stationed on the southern border with Mexico. Which of the following situations would create a conflict of interest for Juan as a broker?

47.Which of the following statements is FALSE?

48.Which ONE of the following constitutes an impermissible "misuse of license or permit" pursuant to CBP regulations pertaining to licensed customs brokers?

49.Choose the ONE answer that correctly fills in the blank. When a change of ownership results in the addition of a new principal to an organizational broker, CBP may conduct a background investigation of the new principal. A "principal" is defined as a person with at least a _____ capital, beneficiary or other direct or indirect interest in the business of a broker.

50.U.S. Customs brokers need to be cautious about business relations with unlicensed persons. The following are examples of unauthorized business relationships EXCEPT: