Broker Compliance: practice questions · page 5

101.Ms. Crimson and Mr. Blue are both individually licensed customs brokers. They form a Limited Liability Company (LLC) and obtain an organizational customs broker license as an association. The LLC hires Ms. Yellow, who is also a licensed customs broker. Crimson is the majority owner of the LLC. Blue is named as the license qualifier. Yellow is named as the permit qualifier. Crimson, Blue and Yellow are all officers of the LLC. The LLC surrenders its organizational license and permit to the processing Center and terminates the brokerage business. Upon termination, who is responsible for notifying CBP in writing of the name, address, email address, and telephone number of the party having legal custody of the LLC's brokerage records?

102.Which of the following dates is the earliest date that an examinee who took the Customs Broker License Exam (CBLE) on October 26, 2022, is eligible to apply for a customs broker license under the following facts? The examinee's birth date is October 12, 2004. The examinee was notified that the examinee passed the CBLE on November 10, 2022. The examinee received the application instruction letter from the processing Center on December 1, 2022.

103.Pursuant to a broker’s requirement to exercise due diligence, what written notification must be on, or attached to, any power of attorney provided by the broker to an active client?

104.Which of the following limitations in a limited power of attorney between a broker and an importer would NOT be permitted under Customs regulations?

105.What statement is FALSE?

106.No later than _____ calendar days after initiating an investigation under 19 CFR 165.15, CBP will take interim measures if there is _____ that the importer entered covered merchandise into the customs territory of the United States through evasion.

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

108.Jane Smith is a licensed customs broker and a qualifying officer of ABC Broker, Inc. corporation. If ABC Broker, Inc. terminates Jane Smith's employment, which of the following best describes how Jane Smith must report her termination to CBP?

109.Pursuant to the Customs regulations, which phrase is defined to be “those activities involving transactions with CBP concerning the entry and admissibility of merchandise, its classification and valuation, the payment of duties, taxes, or other charges assessed or collected by CBP on merchandise by reason of its importation, and the refund, rebate, or drawback of those duties, taxes, or other charges.”?

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

111.What is the maximum amount that a broker can be penalized for a violation or violations of 19 USC 1641 in one penalty notice?

112.What is the maximum continuous period of time that a partnership, association or corporation can operate without at least one member or officer who holds a valid individual broker’s license before the license is revoked by operation of law?

113.Which ONE of the following is NOT required to be maintained by a broker as evidence of their registration for, attendance at, or completion of the qualifying continuing broker education?

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

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

116.A duly licensed customs broker was named in and properly served a U.S CBP summons signed by a Center Director. The summons requires the broker to provide CBP with documentation for 10 entries the broker filed on behalf of Company Z within the last three years so as to help CBP ascertain the correctness of the 10 entries. The broker terminated Company Z as a client 10 months before the summons’ issuance and the POA was revoked. Company Z has not provided the broker with specific written instructions regarding responding to a summons within its now revoked power of attorney document. How must the broker respond to the Customs’ summons?

117.Which ONE of the following activities may qualify for one credit of continuing broker education?

118.Which of the following is NOT a factor that is indicative of a lack of supervision or lack of working knowledge of customs procedures for which CBP may issue a $5,000 penalty against a broker?

119.Who must a broker business designate as the contact for CBP for broker-wide customs business and financial recordkeeping requirements?

120.Every three years each licensed broker (both individual and corporate) must file a status report (Triennial Status Report) with CBP by February of the reporting year. Failure to file the report by February of the reporting year will result in which of the following?

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

122.Jeremy is an unlicensed employee of Universal Customs House Brokerage (UCHB), a licensed entity. UCHB executed a Power of Attorney (POA) that provides Jeremy with authority to sign documents pertaining to customs business on its behalf. Which of the following correctly reflects Jeremy’s authority to sign customs documents?

123.AA Customs Brokers, Inc. has a corporate customs broker license and a national permit. Tom, the individually licensed broker who was the corporation's national permit qualifier, has recently resigned from AA Customs Brokers, Inc. What is the maximum number of days from Tom's effective resignation date that AA Customs Brokers, Inc. has to find a new licensed customs broker to qualify its national permit to avoid their permit's revocation by operation of law?

124.Ms. Thomas an individually licensed broker and Vice President of Jacobs & Robinson CHB, a corporate Customs broker, resigns her position and employment. Within how many days of Ms. Thomas’ resignation must Jacobs & Robinson CHB employ an individually licensed broker who will serve as an officer of the company before the company’s license is revoked by operation of law?

125.Which statement accurately reflects the duration limitations for powers of attorney?