October 2024 CBLE
Questions & answers

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.?

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

While preparing the entry documents for a shipment on behalf of its client Angel Industries (Angel), Shady CHB (Shady) sees that the insurance value for the shipment is significantly lower than the commercial invoice value. In response to Shady's inquiry concerning the differences, Angel explains that there are two commercial invoices for the shipment. The first commercial invoice is the real invoice from the shipper which shows the lower amount that is used for insurance purposes. The second commercial invoice is created by Angel at a higher amount and is used as the invoice for calculating Customs value and upon which it pays the duties, taxes, and fees. Angel explains that it uses the two invoice system in its accounting records to reduce its reportable profit for income tax purposes. Shady's attorney advises Shady to terminate its relationship with Angel because the “double invoice scheme” is fraudulent. Of the choices below, what is Shady's best next step?

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?

____ must be set forth in or attached to an application for a new national permit to describe how responsible supervision and control will be exercised over the customs business conducted under the national permit.

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?

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 The broker terminated Company Z as a client 10 months before the summons’ issuance and the POA was revoked.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?

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?

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?

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?

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

Sam Sly's customs broker license was revoked by operation of law for failure to file a triennial status report and pay the fee. Sam thought that his employer ABC Brokerage (ABC) filed his report and paid the fee on his behalf, so he ignored the warning letter from CBP. In addition to his work at ABC, Sam completes freelance jobs classifying merchandise and filling out entry documents, but not filing them with CBP, for clients he obtains from a website that brings service providers together with businesses who buy freelance services. CBP discovers Sam's side business, determines that Sam is advertising publicly that he is a licensed customs broker, and discovers that he has conducted customs business for five importers of commercial goods after his license was revoked. CBP sends a penalty notice to Sam for conducting customs business without a license for $10,000.00. This is Sam's first penalty, and he has the ability to pay the fine, but he has requested mitigation claiming that he did not know his license was revoked. Based upon the guidelines in Appendix C to 19 CFR Part 171, will CBP mitigate and, if so, to what amount?

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.

Which ONE of the following is subject to mandatory seizure under 19 USC 1595a(c)?

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

Which of the following statements is FALSE with respect to the Power of Attorney (POA)?

Echo will be filing a CBP Form 7501 (7501) for the importation of its paper products, with an entered value of over $1,000. Box 23 on the 7501 requires an Importer Number. An entity’s Importer Number stems from first registering with CBP as an Importer of Record (IOR). Each IOR, in turn, has its own Importer Number. Registering as an IOR with CBP is necessary if an entity intends to be involved as an importer on an informal or formal entry. However, individuals and organizations do not need to be registered as an IOR with CBP to make a section 321 entry (also referred to as de minimis). De minimis entries are for shipments imported by one person on one day valued at $800 or less. Therefore, which below statement is TRUE?

NBB determines it needs to make a USMCA post-summary claim on a type 01 consumption entry filed on behalf of Echo. Of the following methods for making post-summary claims, which ONE cannot be used to make a post-summary claim under the USMCA?

Echo experienced high demand in the U.S. for its paper products and could not manufacture quickly enough to meet its customers’ demands. Echo imported into Canada uncoated paper product like the paper manufactured by Echo from a manufacturer in Australia. Echo relabeled the boxes from the Australian manufacturer to show Echo’s information and exported the paper to the U.S. NBB filed the entry/entry summary as if Echo manufactured the paper. During a routine warehouse inspection, sixty (60) days after the date of import, a CBP Officer and a CBP Import Specialist see the country of origin marking of Australia and research the entry number. The Import Specialist rejects the entry type 01 consumption entry for failure to report and pay antidumping (AD) duties. The rejection puts the entry summary into Trade control status. How and when can NBB best respond on behalf of Echo?

On August 16, 2024, NBB filed a warehouse entry for Echo’s paper instead of a consumption entry. This merchandise was manufactured in Canada. On September 19, 2024, Echo advised NBB that it needed to withdraw one-third of the paper and return it to Canada. At no time would a carnet be involved in this process. What document, from the list below, would be used for the warehouse withdrawal of the merchandise being reexported to Canada?

Of the parties listed below, which party is entitled to claim manufacturing drawback when the right to claim drawback has not been assigned by certification?

How long must records supporting a claim under the modernized drawback regulations be reatined?

Which of the answer choices listed below is NOT information required to be maintained by the drawback claimant in the proper documents generally kept in the normal course of business to substantiate a transfer of merchandise?

Boots-4-U ordered 1,000 pairs of men's motorcycle boots predominantly of leather in three styles as follows.

On April 23, 2024, Boots-4-U correctly filed a formal consumption entry with all the boots on one entry summary line. Boots-4-U utilized subheading 6403.91.6075, HTSUS, for all 1,000 pairs of boots. Boots-4-U’s merchandise was exempt from the merchandise processing fee pursuant to 19 CFR 24.23(c)(1)(iii), but did not meet the duty-free requirements. Therefore, duties were correctly calculated and paid, with a total duty cost of $9,881.25. No other fees were due. Boots-4-U then exported 100 pairs of the black upper and black sole boots and 100 pairs of the black upper and black sole with chains at the ankle boots. Boots-4-U filed the first drawback claim properly calculating drawback using the per unit averaging accounting method pursuant to 19 CFR 190.14(c)(4)(i). In a domestic transaction, Boots-4-U sold all 150 units of the brown upper and black sole boots to Discount Boot House (Discount) for $135.00 per pair and transferred drawback rights for that merchandise to Discount. After the sale, Discount timely exports all boots it bought from Boots-4-U and files a drawback claim as the transferee. Which statement below is accurate regarding the per unit drawback that Discount can claim on the brown upper and black sole boots?

Which of the following best describes a drawback claim, as authorized for payment by CBP?

What is the CLASSIFICATION for a plastic tripod designed for use with a digital camera?

The Explanatory Notes (ENs) to the Harmonized Tariff Schedule of the United States (HTSUS) define sets as follows: “for the purposes of this Rule, the term "goods put up in sets for retail sale" shall be taken to mean goods which: (a) consist of at least two different articles which are, prima facie, classifiable in different headings; (b) consist of products or articles put together to meet a particular need or carry out a specific activity; and (c) are put up in a manner suitable for sale directly to users without repacking (e.g., in boxes or cases or on boards).” Based on this definition, which of the following kits would meet the requirements of a set?

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?

What is the CLASSIFICATION of merchandise invoiced as "polyester scarf" which is composed of 100% polyester and measures 59 centimeters (cm) by 60 cm?

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

What is the CLASSIFICATION of heat insulating solid building bricks made of ceramic?

What is the CLASSIFICATION of a women's outdoor long sleeve garment top, which is composed of a rubberized textile fabric meant for recreational water sports? The rubberized textile fabric is a 100% nylon knit fabric that is completely coated on the outer surface with a rubber weighing less than 1,500 g/m².