Customs Broker EXAM MCQs :-
1. Transfers of merchandise to the Customs territory for transportation to and exportation from a different port of importation will be made using which Customs and Border Protection Form?
A. CBP Form 7512
B. CBP Form 301
C. CBP Form 3461
D. CBP Form 3499
E. CBP Form 6043
Answer: A
2. When a commercial sales transaction is quoted in a foreign currency, the date used for conversion purposes is:
A. the date the goods were sold.
B. the date the goods were packaged.
C. he date payment is transferred from the buyer to the seller
D. the date the goods were exported from the country of export to the U.S.
Answer: D
3. Your client intends to submit an Importer Security Filing (ISF). You advise them that the ___________, ____________, and ___________ must be linked to one another at the line item level for shipments intended to be entered into the U.S. Customs territory?
A. vessel name, country of lading the vessel, and the tenth digit harmonized tariff schedule number
B. unique Customs Trade Partnership Against Terrorism identifier, country of exportation, and buyer
C. Standard Carrier Alpha Code (SCAC Code), city code, and entry summary number
D. manufacturer (or supplier), country of origin, and the sixth digit harmonized tariff schedule number
Answer: D
4. Which of the following is NOT an invoice requirement?
A. An adequate description of the merchandise
B. The quantities of the merchandise
C. The values or approximate values of the merchandise
D. An attached sample of the merchandise
Answer: D
5. Merchandise subject to a countervailing duty order for which entry is required must be entered within: note :
A. five working days after landing from an ocean vessel.
B. five calendar days after arriving from an aircraft.
C. ten calendar days after arriving from a vehicle.
D. fifteen calendar days after arrival at the port of destination in the case of merchandise transported in bond.
Answer: D
6. A broker may be listed as an ultimate consignee on a formal entry if:
A. the ultimate consignee has not been determined by importer, and the broker is not the owner of the merchandise.
B. the delivery destination of the merchandise has not yet been determined by the importer.
C. they own the merchandise, or there is no known U.S. buyer and the accompanying documentation shows the broker premises as the location to which the merchandise is to be delivered.
D. the merchandise is owned by a foreign company and the location of the delivery for the merchandise is unknown.
E. the merchandise is going be exported through another port.
Answer: C
7. Which of the following is required for the importation of raw cane sugar from the Dominican Republic?
A. Special Indicator “E”
B. Special Indicator “J”
C. Certificate of Quota Eligibility
D. Certificate of Quota Eligibility
E. Centrifugal Form
Answer: C
8. Fish are caught by a Norwegian flagged vessel in international waters off the coast of Portugal. The fish are kept either whole or filleted on board. The fillets are sent to England, where they are seasoned, battered, and pre-fried. What is the country of origin of the battered fillets?
A. Portugal
B. Norway
C. England
D. European Union
E. Spain
Answer: B
9. The underscoring of a NAFTA trade classification rule subdivision designation in General Note (GN) 12(t) indicates which of the following?
A. The underscoring in GN 12(t) should be disregarded if the good is a motor vehicle of chapter 87 or will be used in a motor vehicle of chapter 87.
B. if the underscore applies to the classification of your goods then the valuation rules that apply are those found in Title 19 of the Code of Federal Regulations (CFR) 181 Appendix Section 6.
C. If the good is a motor vehicle of chapter 87 or will be used in a motor vehicle of chapter 87 then the valuation rules that apply are those found in 19 CFR 181 Appendix Section 9 or Section 10.
Answer: C
10. Metal eyeglass frames are manufactured in Korea. The manufacturing process includes production of all metal parts, welding the parts together and polishing the eyeglass frames. The products from Korea are assembled and shaped metal eyeglass frames, including the temple tips and nose pads. All items are then shipped to Germany where the frames are plated, the country of origin is printed on the temple, the temple tips and nose pads are assembled onto the frame and the frame (without lenses) is packaged and prepared to be shipped to the United States. What is the country of origin and appropriate marking of metal eyeglass frames manufactured in Korea?
A. Country of Origin Germany / “Frames made in Germany”
B. Country of Origin Korea / “Frames made in Korea”
C. Country of Origin Germany / “Made in Germany”
Answer: B
11. Which of the following is NOT an additional commercial invoice requirement?
A. Aluminum and alloys of aluminum classifiable in 7601.10.60, 7601.20.60, 7601.20.90 or 7602.00.00 require a statement about the amount of percentages by weight of any metallic element contained in the article.
B. Copper articles classifiable in 7404.00.60, 7408.19.00, 7412.10.00 or 7410.11 require a statement of percentage of the copper content and all other elements by weight to articles classifiable according to the copper content.
C. Steel classifiable in heading 7308 requires a mill test certificate.
D. Ferrosilicon manganese requires a mill test certificate.
Answer: C
12. The importation of goods into the U.S. Virgin Islands is governed by the:
A. Virgin Islands law
B. U.S. Customs and Border Protection
C. U.S. Department of the Interior
Answer: A
13. What is the timeframe for merchandise permitted for removal from a foreign trade zone for importation?
A. Within 5 business days
B. Within 30 business days
C. Within 90 business days
Answer: A
14. An Attached sample of the merchandise is an invoice requirement
A. True
B. False
Answer: B
15. A domestic express consignment courier, who is an unlicensed person and possesses no financial interest of the imported merchandise, may engage in which of the following role and/or responsibility?
A. Engage in “Customs business”
B. Serve as the ultimate consignee
C. Act as the nonresident importer of record
D. Act as the Customs broker
E. Obtain a valid power of attorney from an importer
Answer: E
16. A foreign business entity may NOT be the ultimate consignee _____.
A. For entries wherein the entered merchandise is valued at $1,999
B. When the vehicle registered by and used on behalf of the entity takes part in races in Daytona, Florida, is temporarily imported under the Harmonized Tariff Schedule 9813.00.35
C. And the nonresident importer of record when the U.S. agent is not authorized to accept service of process against the nonresident importer by means of the power of attorney
D. When the commercial invoice identifies the merchandise as new pneumatic tires, of rubber for use on motor cars with a value of $2,000
E. When a Customs assigned number is used on a temporary importation entry for contest sail boats
Answer: D
17. Which of the following items are excepted from the country of origin marking?
A. Firewood
B. Toys
C. Picture frames
D. Bunches of artificial flower
E. Bagged carrots packaged for retail sale
Answer: A
18. As a licensed broker, you filed entry summaries on behalf of Spyglass, Inc. for five shipments of binoculars invoiced at $50,000 per shipment. Weeks later your client discovered that a computer error had generated incorrect invoices. The correct value of each shipment was actually $150,000. Because the merchandise was duty-free, Spyglass, Inc. decided it was not necessary to notify you or Customs and Border Protection (CBP). A year later CBP discovered the discrepancies through an audit. A penalty was assessed under 19 U.S.C. 1592 for gross negligence against the five shipments. The amount of the penalty assessed would have been:
A. $80,000
B. $150,000
C. $300,000
D. $750,000
Answer: C
19. The computed value of imported merchandise would include all of the following EXCEPT:
A. The cost or value of the materials, fabrication, and other processing used in the production of the imported merchandise
B. An amount for any tax imposed on the merchandise by the government of the exporting country which is refunded to the producer upon exportation of the merchandise
C. The cost of any containers, coverings, and/or packing required to ship the merchandise
D. The cost of any containers, coverings, and/or packing required to ship the merchandise
E. An amount for the producer’s profit and general expenses.
Answer: B
20. A broker files a drawback claim on behalf of its client on February 1, 1999. The exports on the claim range from April 1, 1998 to January 4, 1999. In April, 2000, the client asks the broker to amend the claim. The drawback entries covered by the claim have not yet been liquidated. May the broker file the amended claim?
A. No, because filed drawback claims cannot be amended
B. Yes, because unliquidated drawback claims can be amended any time up to the date of liquidation of the drawback entries
C. No, because amendments to unliquidated drawback claims must be made within 90 days of the date that the claims were filed
D. Yes, because unliquidated drawback claims may be amended within 3 years after the date of exportation or destruction of the articles which are the subject of the original drawback claim
E. No, because unliquidated drawback claims must be protested
Answer: D
21. Customs brokers can be located at inland “ports” to clear merchandise sent “in bond” but most are located at major ________ and harbors with international traffic.
A. Airport
B. Airport security
C. Airline hub
D. Air traffic control
Answer: A
22. In the United States, customs brokers are licensed by the ________.
A. United States Coast Guard
B. United States Secret Service
C. U.S. Immigration and Customs Enforcement
D. U.S. Customs and Border Protection
Answer: D
23. Customs brokers need to be familiar with the Tariff Schedule, a listing of duty rates for imported items, and the regulations governing importations found in the ________ Title 19, known as 19 CFR.
A. Administrative law judge
B. Code of Federal Regulations
C. Rulemaking
D. Administrative law
Answer: B
24. This involves the preparation of documents and/or electronic submissions, the calculation (and usually the payment) on behalf of the client of taxes, duties and ________, and facilitating communication between the importer/exporter and governmental authorities.
A. Tax haven
B. Progressive tax
C. Land value tax
D. Excise
Answer: D
25. In ________ customs brokers are licensed by Canada Border Service Agency (Canada Customs) .
A. Canada
B. United States
C. Barbados
D. United Kingdom
Answer: A
26. Customs brokerage is a profession that involves the ‘clearing’ of goods through customs barriers for importers and ________ (usually businesses).
A. Trade
B. International trade
C. Export
D. Economics
Answer: C