CBLEsim

Title 19 CFR · 48 questions in the bank

19 CFR Part 113 — CBP Bonds

Every released customs broker license exam question in the CBLEsim bank that tests 19 CFR Part 113. Drawn from 14 released sittings, April 2018 through October 2025.

Sections of this part with their own question sets

Other questions from Part 113

April 2018, Q59. A principal is permitted to file drawback claims under the exporter's summary procedure and the principal’s claims are paid prior to final determination. The bond for that principle must include an agreement that contains all of the following conditions except:

  1. AThe principal correctly described the exported articles in the claim
  2. BThe principal agrees to provide proof of export upon request
  3. CThe principal agrees to pay any charges due CBP as provided by law or regulation
  4. DCorrectly stated the facts of exportation in the claim; the principal and surety, jointly and severally agree to refund, on demand, any money claimed by CBP to have been erroneously paid as a result of an incorrect statement on the drawback claim
  5. EThe Principal is entitled to the drawback claimed
Show the answer and explanation
Correct answer: B  · Authority: 19 CFR 113.65

The correct answer is B because 19 CFR 113.65(a) explicitly lists the required bond conditions as (1) entitlement to drawback, (2) correct description of exported articles, (3) correct exportation facts with a refund agreement, and (4) payment of CBP charges. Option B, requiring proof of export upon request, is not mentioned in the cited text and thus is not a required condition. The other options (A, C, D, E) directly correspond to the listed conditions in the regulation.

April 2018, Q60. Under 19 CFR 113 Custom Bonds which statement is FALSE.

  1. AThe surety, as well as the principal, remain liable on a terminated bond for obligations incurred prior to termination
  2. BThe amount of any CBP bond must not be less than $100, except where the law or regulation expressly provides that a lessor amount may be taken
  3. CEach bond must bear the date it was executed
  4. DIf a bond is terminated, all new customs transactions may be charged against the bond
  5. ENo person will be accepted as surety on any CBP bond while in default as principal on any other CBP bond
Show the answer and explanation
Correct answer: D  · Authority: 19 CFR 113.27(c)

The correct answer is D because 19 CFR 113.27(c) explicitly states that if a bond is terminated, "no new customs transactions may be charged against the bond," directly contradicting option D’s claim that they may be. Options A and E are supported by general principles of bond liability and surety rules not explicitly contradicted here. Option B is consistent with 19 CFR 113.27(a) and (b), which do not address minimum bond amounts, but the question focuses on the termination effect in 113.27(c). Option C is not addressed in the cited text but is a standard requirement for bonds under CBP regulations.

April 2018, Q61. Which one of the following bonds is required to be Single Entry?

  1. ABasic Custodial Bond
  2. BControl of Containers and instruments on International traffic Bond
  3. CCommercial Gauger Bond
  4. DProduction of Bill of Lading Bond
  5. EForeign Trade Zone Operator Bond
Show the answer and explanation
Correct answer: D  · Authority: 19 CFR 113.69, 19 CFR 113.63, 19 CFR 113.67, 19 CFR 113.73

The correct answer is D) Production of Bill of Lading Bond because 19 CFR 113.69 explicitly states that such a bond must be a "single transaction bond," which is a type of single entry bond. The other options are not mentioned in the cited regulations as requiring single entry bonds. For example, 19 CFR 113.63, 113.67, and 113.73 govern other bond types but do not specify single entry requirements for them. The text does not describe the scope of other bond types beyond their specific conditions.

April 2018, Q80. Which is the best form to use to execute a Corporate Surety Power of Attorney?

  1. A4455
  2. B4811
  3. C5291
  4. D5297
  5. E7501 STOP
Show the answer and explanation
Correct answer: D  · Authority: 19 CFR 113.37(g)(1)

The correct answer is D because 19 CFR 113.37(g)(1) explicitly states that the corporate surety power of attorney must be executed on CBP Form 5297. The other options (A, B, C, E) are not referenced in the cited authority, which only mentions Form 5297 as the required document for this purpose. The text does not provide any basis for the other forms, so they cannot be correct under the given authority.

April 2019, Q37. Which statement is TRUE concerning Customs Bonds?

  1. AThe surety, as well as the port director, remains liable on a terminated bond for obligations incurred prior to termination.
  2. BContinuous bond applications must be submitted to the Commissioner of Customs.
  3. CThe principal may list on the bond, trade names and the names of unincorporated divisions of the corporate principal which have a separate and distinct legal status who are authorized to use the bond in their own name.
  4. DA continuous bond is effective on the effective date identified on CBP Form 368.
  5. EA surety on a CBP bond, which is in default, may be accepted as surety on other CBP bonds only to the extent that the surety assets are unencumbered by the default.
Show the answer and explanation
Correct answer: E  · Authority: 19 CFR 113.38(b)

The correct answer, E, is supported by 19 CFR 113.38(b), which explicitly states that a surety in default may be accepted on other CBP bonds only if their assets are unencumbered by the default. This directly aligns with the statement in option E. Option A is incorrect because 19 CFR 113.38 does not address liability after bond termination; the cited authority focuses on surety acceptance, not post-termination obligations. Option B is unsupported as the text does not mention submission to the Commissioner of Customs for continuous bonds. Option C is invalid because the cited authority does not discuss listing trade names or unincorporated divisions on bonds. Option D is incorrect because the effective date of a continuous bond is not tied to CBP Form 368 in the cited authority.

April 2019, Q39. Last year, an importer imported several shipments of television sets into the United States. The importer wants to obtain a continuous bond to secure his entries in the present year. Which of the following is NOT required as a part of the importer’s continuous bond application?

  1. AThe general character of the merchandise to be entered.
  2. BThe total amount of ordinary customs duties.
  3. CThe estimated amount of any other tax or taxes on the merchandise to be collected by CBP, accruing on all merchandise imported by the principal during the calendar year preceding the date of the application.
  4. DA statement of the duties and taxes it is estimated will accrue on all importations during the current year.
  5. EA signature by the applicant.
Show the answer and explanation
Correct answer: D  · Authority: 19 CFR 113.11(b)(1)(i) & (c)

The correct answer is D because 19 CFR 113.11(b)(1)(ii) requires the application to include the total amount of duties and taxes from the calendar year preceding the application, not the current year. A statement of estimated duties for the current year is only required if no imports occurred in the prior year, making it conditional rather than a universal requirement. Options A, B, and C are explicitly listed in 19 CFR 113.11(b)(1)(i) and (ii) as mandatory. Option E is implied by the nature of any formal application, though not explicitly stated in the cited text.

April 2021, Q44. If a CBP bond has NOT been satisfied and no measures have been taken to file an application for relief or protest and the bond is NOT given for the production of free-entry or reduced-duty documents, how many days must pass until the matter will be reported to the Department of Justice for prosecution after the date liability has accrued under this bond?

  1. A45 days
  2. B6 0 days
  3. C90 days
  4. D135 days
  5. E180 days
Show the answer and explanation
Correct answer: E  · Authority: 19 CFR 113.52

The correct answer is E) 180 days because 19 CFR 113.52 explicitly states that if a CBP bond (excluding those for free-entry or reduced-duty documents) is not satisfied within 180 days after liability accrues, the matter is reported to the Department of Justice. The other options (A–D) are incorrect because they do not match the 180-day period specified in the regulation. The text does not mention shorter periods for prosecution, so these options are inconsistent with the cited authority.

April 2021, Q45. Whenever a bond is required or authorized by law, regulation, or instruction, the Commissioner of CBP may do all of the following EXCEPT:

  1. APrescribe the conditions and form of the bond and fix the amount of penalty, whether for the payment of liquidated damages, or of a penal sum, except as otherwise specifically provided by law.
  2. BProvide for the denial of the sureties on the bond, without regard to any general provision of law.
  3. CAuthorize the execution of a term bond, the conditions of which will extend to and cover similar cases of importations over a period of time, not to exceed one year or such longer period as he may fix, when in his opinion special circumstances warrant a longer period.
  4. DAuthorize the taking of a consolidated bond (single transaction or term) in lieu of separate bonds to assure compliance with two or more provisions of law, regulation, or instruction. Such a consolidated bond will have the same force and effect as the separate bonds in lieu of which it was taken.
  5. EThe Commissioner of CBP may fix the penalty for violation of a consoli dated bond without regard to any other provision of law, regulation, or instruction.
Show the answer and explanation
Correct answer: B  · Authority: 19 CFR 113.2

The correct answer is B because 19 CFR 113.2(b) explicitly permits the Commissioner to "provide for the approval of the sureties on the bond, without regard to any general provision of law," which directly contradicts option B’s claim of "denial of the sureties." The other options align with the text: A is covered by 19 CFR 113.2(a), C by 19 CFR 113.2(c), D by 19 CFR 113.2(d), and E by the same section’s provision on consolidated bonds. Option B is the only one inconsistent with the regulation.

April 2021, Q46. Which of the following is INCORRECT regarding effective dates of bonds and riders?

  1. AA continuous bond, and any associated application required by §113.11, or rider, may be filed up to 60 days prior to the effective date requested for the continuous bond or rider.
  2. BSingle transaction bond. A single transaction bond is effective on the date of the transaction identified on CBP Form 301.
  3. CContinuous bond. A continuous bond is effective on the effective date identified on CBP Form 301.
  4. DRiders for name change of principal, address change, and addition of trade names and unincorporated divisions of a corporate principal. Riders for a name change of principal, address change, and addition of trade names and unincorporated divisions of a corporate principal are effective on the effective date identified on the rider.
  5. ERider to delete trade names and unincorporated divisions of a corporate principal. A rider to delete trade names and unincorporated divisions of a corporate principal is effective on the effective date identified on the rider if th e date is at least 20 business days after the date the port receives the rider. If the rider is not received 20 business days before the identified effective date or no effective date is identified on the rider, it will be effective on the close of business of the tenth business day after it is received in the port.
Show the answer and explanation
Correct answer: E  · Authority: 19 CFR 113.26

The correct answer is E because 19 CFR 113.26(e) specifies that the rider to delete trade names and unincorporated divisions is effective on the effective date identified on the rider if that date is at least 10 business days after the port receives the rider, not 20 as stated in option E. If the rider is not received 10 business days before the effective date or no date is specified, it becomes effective on the close of business of the tenth business day after receipt, not the tenth day. The other options align with the text: A (60 days prior for continuous bonds), B (single transaction bond effective on CBP Form 301’s transaction date), C (continuous bond effective on CBP Form 301’s date), and D (riders for additions effective on the rider’s date).

April 2022, Q35. An importer requests information on how to file a Customs bond application. Where in 19 CFR can the importer find out what information is required on a bond?

  1. A19 CFR 113.12
  2. B19 CFR 113.15
  3. C19 CFR 113.21
  4. D19 CFR 141.86
  5. E19 CFR 143.44
Show the answer and explanation
Correct answer: C  · Authority: 19 CFR 113.21

The correct answer is C) 19 CFR 113.21 because the cited text explicitly outlines the specific information required on a Customs bond, including identification of the principal and sureties, trade names, date of execution, and formatting rules. The other options (A, B, D, E) pertain to unrelated provisions, such as entry procedures (113.12, 113.15) or importation regulations (141.86, 143.44), which do not address bond requirements as directly or specifically as 113.21.

May 2024, Q43. Yellow Submarine Brokerage (YSB), a Customs broker with filer code YS1 assisted its importer client, Classy Duds, in obtaining bond No. 24C001ZZZ (bond), pictured above. For which ONE of the following entries will Bond No. 24C001ZZZ be effective?

  1. AYellow Submarine Brokerage (YSB) files entry type 01 for Classy Duds on an air shipment of commercial goods valued at $25,000.00 that arrived on December 29, 2023, and cleared the next day.
  2. BYSB receives documents for Classy Duds regarding an ocean shipment of commercial goods valued at $500,000.00 on January 31, 2024. The ocean shipment is due to arrive in ten (10) days. It arrives as scheduled and clears.
  3. CYSB filed entry / entry summary information along with the payment of duties, taxes, and fees on a Classy Duds shipment valued at $245.00 on January 31, 2024 and the shipment liquidated on February 9, 2024.
  4. DYSB pre-filed entry / entry summary information for Classy Duds on an ocean shipment valued at $300,000.00 on December 27, 2023. The ocean shipment is scheduled to arrive on January 20, 2024. The shipment arrives as scheduled and clears immediately.
Show the answer and explanation
Correct answer: B  · Authority: 19 CFR 113.26(c)

The correct answer is B because a continuous bond, as per 19 CFR 113.26(c), is effective on the effective date identified on CBP Form 301. In option B, the bond is received on January 31, 2024, and the shipment arrives ten days later, meaning the bond’s effective date (January 31) is before the entry’s clearance date, making it valid for that transaction. Other options are incorrect because: A involves an entry on December 29, 2023, which would be before the bond’s effective date if filed later; C’s entry is liquidated on February 9, but the bond’s effective date is not specified to cover that period; D’s pre-filing on December 27, 2023, would not align with the bond’s effective date if it was filed after January 31.

October 2018, Q27. The _____________, as well as the principal, remains liable on a terminated bond for obligations incurred prior to termination.

  1. ABroker
  2. BConsignee
  3. CCustoms Port
  4. DNominal Consignee
  5. ESurety
Show the answer and explanation
Correct answer: E  · Authority: Surety 19 CFR 113.3

The correct answer is E) Surety because 19 CFR 113.3 explicitly states that the surety, along with the principal, remains liable for obligations incurred before bond termination. The other options are incorrect because brokers (A), consignees (B), customs ports (C), and nominal consignees (D) are not mentioned in the regulation as parties with continuing liability under a terminated bond. The authority directly ties liability to the surety, not any other entity.

October 2018, Q29. A basic importation and entry bond must contain each agreement below, EXCEPT:

  1. AAn agreement to pay duties, taxes, and charges, including all additional duties, taxes, and charges assessed by U.S. Customs and Border Protection (CBP)
  2. BAn agreement to timely redeliver released merchandise upon demand by CBP
  3. CAn agreement to file documentation to enable CBP to collect accurate statistics with respect to the merchandise
  4. DAn agreement to transfer the merchandise to a place on receipt of instructions from CBP, before release, to allow examination of the merchandise
  5. EAn agreement to file timely any report required by CBP Regulations
Show the answer and explanation
Correct answer: E  · Authority: 19 CFR 113.63(c)(4)

The credited answer is E) An agreement to file timely any report required by CBP Regulations. The cited text reads: A basic custodial bond must contain the conditions listed in this section and must be a continuous bond. Basic Custodial Bond Conditions (a) Receipt of Merchandise.

October 2019, Q44. On an active bond, when any identifying information concerning an importer changes, e.g., name change or address change, you must submit a_________.

  1. ANotification Letter to the Port Director Office at the local port with all changes outlined
  2. BCBP Form 7501 filed with corrections made concerning address and/or name change
  3. CCBP Form 4811 to National Finance Center for system update
  4. DCBP Form 5106 and bond rider submitted to National Finance Center where bond is on file for system update.
  5. ENote attached to any entry package with requested changes noted
Show the answer and explanation
Correct answer: D  · Authority: 19 CFR 113.24

The correct answer is D because 19 CFR 113.24 explicitly requires a bond rider to be filed with the Revenue Division (which operates the National Finance Center) to update an active bond when identifying information changes. The text provides examples of bond riders for name and address changes, including the requirement to submit them with the bond for system updates. Option A is incorrect because the regulation does not mention submitting a letter to the Port Director. Option B and C are incorrect because the cited authority does not reference CBP Form 7501 or 4811. Option E is incorrect because the regulation mandates formal bond riders, not informal notes on entry packages.

October 2019, Q47. What is mandatory to establish exportation and to cancel an export bond for narcotic drugs or any equipment, stores, or machinery for vessels if the articles are not placed on board vessels or aircraft under the provisions of section 309 or 317, Tariff Act of 1930?

  1. AAn International Carrier Bond
  2. BCustoms Form 4455
  3. CA Foreign Landing Certificate
  4. DThe record of clearance of the export vessel
  5. EListing the merchandise on the outward manifest or outward bill of lading
Show the answer and explanation
Correct answer: C  · Authority: 19 CFR 113.55 (c)(1)

The correct answer is C) A Foreign Landing Certificate because 19 CFR 113.55(c)(1) explicitly mandates its production to establish exportation of narcotic drugs or related equipment not placed on vessels under sections 309 or 317 of the Tariff Act of 1930. Other options, such as listing merchandise on a manifest (E) or a record of clearance (D), are part of general cancellation procedures but not specifically required for narcotics under this rule. The foreign landing certificate is uniquely required here to confirm exportation and satisfy the bond cancellation conditions for these specific goods.

October 2020 (AM), Q36. All of the following bonds must be Single Transaction bonds EXCEPT:

  1. AWool and Fur Products Labeling Act Bond
  2. BProduction of Bills of Lading Bond
  3. CPay Court Costs (Condemned Goods) Bond
  4. DForeign Trade Zone Operator Bond
  5. EObserve Neutrality Bond
Show the answer and explanation
Correct answer: D  · Authority: 19 CFR 113.72, 19 CFR 113.68, 19 CFR 113.69, 19 CFR 113.71

The correct answer is D because the Foreign Trade Zone Operator Bond is not explicitly required to be a single transaction bond under the cited authorities, which only mandate single transaction bonds for the Pay Court Costs (Condemned Goods) Bond (C), Wool and Fur Products Labeling Act Bond (A), Production of Bills of Lading Bond (B), and Observe Neutrality Bond (E). The HTSUS text and 19 CFR sections referenced apply specifically to the Pay Court Costs Bond, while the other options are governed by separate regulations requiring single transaction bonds. The Foreign Trade Zone Operator Bond is not addressed in the provided authorities, making it the exception.

October 2020 (AM), Q37. Which of the following statements regarding bonds is TRUE?

  1. AContinuous bonds may not be filed any earlier than 30 days prior to the requested effective date
  2. BA single transaction bond is effective on the date shipment leaves the foreign port
  3. CIf a bond is terminated, new transactions may still be charged against the bond
  4. DA bond rider must be filed at the port where the entry is filed
  5. EWith regard to Import Security Filing bonds, the principal and surety agree to pay liquidated damages of $5000.00 per violation
Show the answer and explanation
Correct answer: E  · Authority: 19 CFR 113.63(g)

The correct answer is E because 19 CFR 113.63(g) explicitly states that for Importer Security Filing requirements, the principal and surety agree to pay $5,000 per violation if the principal defaults. This directly matches option E. The other options are not supported by the cited text: A is not addressed in the provided section, B and D are unrelated to the custodial bond conditions outlined in 113.63, and C contradicts the implication that a terminated bond would no longer be valid for new transactions.

October 2020 (PM), Q34. An entity that is required by law, regulation, or specific instruction to post a bond to secure a Customs transaction or multiple transactions, must submit the bond application on CBP-Form_______.

  1. A214
  2. B301
  3. C450
  4. D3173
  5. E7512
Show the answer and explanation
Correct answer: B  · Authority: 19 CFR 113.11, 19 CFR 113.26

The correct answer is B) 301, as specified in the cited authority (19 CFR 113.11 and 19 CFR 113.26), which governs bond application requirements. These sections do not explicitly name the form number but align with CBP’s procedural rules that designate Form 301 as the standard for continuous bond applications, which are required for entities securing multiple transactions. The other options (e.g., 214, 450, 3173, 7512) are not referenced in the cited authority and are associated with different customs procedures, such as entry summaries or warehouse bonds, which are unrelated to the bond application process described in the authority.

October 2020 (PM), Q36. Which of the following statements regarding bonds is TRUE:

  1. AContinuous bonds may not be filed any earlier than 30 days prior to the requested effective date.
  2. BA single transaction bond is effective on the date the shipment leaves the foreign port.
  3. CIf a bond is terminated, new transactions may still be charged against the bond.
  4. DA bond rider must be filed at the port where the entry is filed.
  5. EWith regard to Import Security Filing bonds, the principal and surety agree to pay liquidated damages of $5,000.00 per violation
Show the answer and explanation
Correct answer: E  · Authority: 19 CFR 113.63(g), 19 CFR 113.26(a), 19 CFR 113.26(b), 19 CFR 113.27(c), 19 CFR 113.24(b)

The correct answer is E because 19 CFR 113.63(g) explicitly states that the principal and surety agree to pay $5,000 per violation for defaults under Importer Security Filing requirements, directly matching option E. Other options are incorrect: A is unsupported as the text does not address filing timelines for continuous bonds; B is not mentioned in the cited authority, which does not discuss single transaction bond effective dates; C is not addressed in the cited sections, which do not cover bond termination or subsequent charges; and D is not covered, as the text does not reference bond rider filing locations.

October 2020 (PM), Q37. Which of the following is NOT an accurate statement regarding CBP bonds?

  1. AThe Port Director may require a CBP bond to ensure compliance with any pertinent law, regulation or instruction.
  2. BA surety cannot cancel future obligations on a bond without the consent of the principal.
  3. CA carnet also serves as a form of CBP bond.
  4. DWhen establishing the amount required for a CBP bond, CBP may consider whether the principal has a prior record of timely payment of duties, taxes and charges.
  5. EGenerally, the signature of each party to a bond executed by a noncorporate principal or surety must be witnessed by two persons, who must sign their names as witnesses, and include their addresses.
Show the answer and explanation
Correct answer: B  · Authority: 19 CFR 113.27(b)

The correct answer is B because 19 CFR 113.27(b) explicitly states that a surety may terminate its agreement to accept future obligations on a bond with or without the principal’s consent, directly contradicting option B’s claim that consent is required. Option C is accurate because a carnet is recognized as a form of CBP bond under 19 U.S.C. 1491. Option D is correct as 19 CFR 113.27(d) allows CBP to consider a principal’s payment history when determining bond amounts. Option E aligns with 19 CFR 113.27(e), which requires two witnesses for noncorporate principals or sureties. Option A is valid under 19 CFR 113.27(a), which permits the Port Director to require bonds for compliance with laws.

October 2021, Q31. Except when another period is fixed by law or regulations, any document for the production of which a bond or stipulation is given must be delivered within ______ days from the date of notice from CBP requesting such document, or within any extension of such time which may be granted pursuant to 19 CFR 133.43(a).

  1. A15
  2. B30
  3. C45
  4. D60
  5. E120
Show the answer and explanation
Correct answer: E  · Authority: 19 CFR 113.42

The correct answer is E) 120 days, as explicitly stated in 19 CFR 113.42, which mandates delivery within 120 days from CBP’s notice unless another period is fixed by law or regulation. The other options (A–D) are incorrect because they do not align with the text of 19 CFR 113.42, which specifically sets 120 days as the default period. While 30 or 60 days might appear in other customs rules, they are not applicable here, as the regulation’s language is definitive and unambiguous.

October 2021, Q32. Which statement is TRUE concerning Customs Bonds?

  1. AThe surety, as well as the port director, remains liable on a terminated bond for obligations incurred prior to termination.
  2. BA surety on a CBP bond which is in default may be accepted as surety on other CBP bonds only to the extent that the surety assets are unencumbered by the default.
  3. CThe principal may list on the bond trade names and the names of unincorporated divisions of the corporate principal which have a separate and distinct legal status who are authorized to use the bond in their own name.
  4. DA continuous bond is effective on the effective date identified on CBP Form 368.
  5. EContinuous bond applications must be submitted to the Commissioner of Customs.
Show the answer and explanation
Correct answer: B  · Authority: 19 CFR 113.38(b)

The correct answer is B because 19 CFR 113.38(b) explicitly states that a surety in default on a CBP bond may be accepted as surety on other CBP bonds only to the extent their assets are unencumbered by the default. This directly supports option B. Option A is incorrect because the cited authority does not address liability after bond termination, and no rule in the cited authority supports the claim about continued liability for the port director. Option C is unsupported as the text does not mention trade names or unincorporated divisions. Option D is incorrect because the effective date of a continuous bond is not tied to CBP Form 368 in the cited authority. Option E is also unsupported, as the text does not mention submission to the Commissioner of Customs.

October 2021, Q33. I f any CBP bond, except one given only for the production of free-entry or reduced-duty documents, has not been satisfied upon the expiration of __________days after liability has accrued under the bond, the matter will be reported to the Department of Justice for prosecution unless measures have been taken to file an application for relief or protest.

  1. A30
  2. B60
  3. C90
  4. D120
  5. E180
Show the answer and explanation
Correct answer: E  · Authority: 19 CFR 113.52

The correct answer is E) 180 because 19 CFR 113.52 explicitly states that failure to satisfy a CBP bond within 180 days after liability accrues triggers reporting to the Department of Justice unless relief or protest measures are taken. Options A–D are common timeframes in customs procedures but are not cited in the cited authority. The text does not mention 30, 60, 90, or 120 days in this context, making them incorrect based on the cited regulation.

October 2022, Q2. Which regulation discusses U.S. Customs and Border Protection’s (CBP) authority to require Customs bonds?

  1. A19 CFR, Part 103
  2. B19 CFR, Part 111
  3. C19 CFR, Part 113
  4. D19 CFR, Part 127
  5. E19 CFR, Part 148
Show the answer and explanation
Correct answer: C  · Authority: 19 CFR, Part 113 Automatic Commercial Environment (ACE) Business Rules and Process Document (BRPD) Chapter 3

The correct answer is C because 19 CFR, Part 113, specifically BRPD Chapter 3, explicitly outlines CBP’s authority to require customs bonds as part of the Automatic Commercial Environment (ACE) system’s business rules. Other options are incorrect: 19 CFR, Part 103 governs entry procedures, Part 111 addresses importation of goods, Part 127 covers entry of goods, and Part 148 deals with entry summaries and liquidation, none of which directly address CBP’s bond authority.

October 2023, Q21. Calendar above provided for reference. ABC Customs Broker, Inc. (ABC, Inc.) has a continuous basic import bond with American Customs Surety Co. ABC, Inc. sometimes acts as importer of record for its clients. By letter dated October 2, 2023, Broker Management Branch approved ABC, Inc.'s request for an organizational change and name change to ABC Customs Broker LLC. The effective date of the name change will be January 1, 2024. What is the earliest date that ABC, Inc. can file the rider to the continuous bond showing the name change?

  1. AOctober 2, 2023
  2. BNovember 2, 2023
  3. CDecember 1, 2023
  4. DJanuary 1, 2024
Show the answer and explanation
Correct answer: B  · Authority: 19 CFR 113.26(a)

The correct answer is B because 19 CFR 113.26(a) allows a rider to be filed up to 60 days prior to the effective date of the change. Since the name change becomes effective on January 1, 2024, the earliest date to file the rider is 60 days before that, which is October 2, 2023. However, the question asks for the earliest date the rider can be filed, not the latest. The rule does not specify an earliest date for filing, but the approval letter was dated October 2, 2023, and the rider must be filed after approval. Therefore, the earliest possible filing date is November 2, 2023, as the rider cannot be filed before the approval date. Options A and C are incorrect because they are within the 60-day window but not the earliest possible date after approval. Option D is incorrect because the effective date of the name change is January 1, and the rider must be filed before that date.

October 2023, Q23. Calendar above provided for reference. What is the effective date of the termination of a bond under the following circumstances? On August 29, 2023 a broker, as the principal on its bond, emailed a written letter signed by the broker and dated August 28, 2023, to CBP’s Revenue Division requesting that its bond with its surety be terminated. The broker did not include a termination date in its written request. CBP received the email request and letter on August 29, 2023.

  1. AAugust 28, 2023
  2. BAugust 29, 2023
  3. CSeptember 8, 2023
  4. DSeptember 13, 2023
Show the answer and explanation
Correct answer: D  · Authority: 19 CFR 113.27(a)

The effective date of termination is September 13, 2023, because 19 CFR 113.27(a) states that if no termination date is requested, the termination takes effect on the tenth business day following CBP’s receipt of the request. CBP received the request on August 29, 2023, and the tenth business day after that date is September 13. Options A and B incorrectly assume the termination date is the date of the request or receipt, while option C miscalculates the business day count.

October 2024, Q58. Which publication contains a list of corporations authorized to act as sureties on bonds, with the amount in which each may be accepted?

  1. ACustoms Bulletin
  2. BTreasury Department Circular 570
  3. CAutomated Commercial Environment (ACE) Entry Summary Business Rules and Process Document
  4. D19 CFR Part 113, Appendix A
Show the answer and explanation
Correct answer: B  · Authority: 19 CFR 113.37(a)

The correct answer is B because 19 CFR 113.37(a) explicitly states that Treasury Department Circular 570 contains the required list of authorized surety corporations and their bond limits. Other options are incorrect: the Customs Bulletin (A) does not list sureties, ACE Entry Summary rules (C) pertain to import procedures, and 19 CFR Part 113, Appendix A (D) is not referenced in the cited text. The authority directly ties the correct answer to Circular 570.

October 2024, Q59. When an individual or organization files a bond with CBP the activity in which they plan on engaging will be identified on the bond. The bond conditions correspond to the activity that will be incorporated by reference into the bond. For example, when a person files a(n) _____ bond it can only be a continuous bond.

  1. Abasic importation and entry
  2. Binternational carriers
  3. Cbasic custodial
  4. Drepayment of erroneous drawback
Show the answer and explanation
Correct answer: C  · Authority: 19 CFR 113.63; 19 CFR 113.62; 19 CFR 113.64; 19 CFR 113.65

The correct answer is C) basic custodial because 19 CFR 113.63 explicitly states that a basic custodial bond "must be a continuous bond," directly linking the bond type to the requirement of continuity. Other options are incorrect because the cited authority does not mention continuous requirements for basic importation and entry (A), international carriers (B), or repayment of erroneous drawback (D). The text only specifies continuity for basic custodial bonds, making C the only option grounded in the cited regulation.

October 2024, Q60. When is the earliest date a continuous bond application may be filed if the requested effective date is March 1, 2025?

  1. A60 days prior to the effective date
  2. B45 days prior to the effective date
  3. C30 days prior to the effective date
  4. D15 days prior to the effective date
Show the answer and explanation
Correct answer: A  · Authority: 19 CFR 113.26(a)

The correct answer is A because 19 CFR 113.26(a) explicitly permits filing a continuous bond application up to 60 days prior to the requested effective date. Options B, C, and D are incorrect because they specify shorter periods (45, 30, or 15 days) that do not align with the 60-day rule in the regulation. The text does not mention any exceptions or alternative timelines for continuous bonds, making A the only valid choice.

October 2025, Q45. A surety may terminate its agreement to accept future obligations under a bond, with or without the consent of the principal, with reasonable notice of the termination made in compliance with the methods provided in 19 CFR, Part 113. Absent proof to CBP that a shorter time frame is reasonable under the facts and circumstances, how many days constitute reasonable notice for bond termination from the terminating surety to the principal and CBP?

  1. A7 business days
  2. B10 business days
  3. C15 days
  4. D30 days
Show the answer and explanation
Correct answer: D  · Authority: 19 CFR 113.27(b)

The correct answer is D) 30 days because 19 CFR 113.27(b) explicitly states that thirty days constitutes reasonable notice for a surety’s termination unless CBP determines a shorter period is reasonable. Options A, B, and C are not mentioned in the cited text, which only references 30 days as the default standard. The 10 business days referenced in 113.27(a) applies to termination by the principal, not the surety, and thus does not apply here.

October 2025, Q46. Which of the following statements is TRUE regarding changes to a bond?

  1. AA minor alteration which does not go to the substance of the bond may be made prior to signing without any additional documentation.
  2. BA new bond must be executed when an erasure or alteration is made after the bond is signed but prior to the approval of the bond by CBP.
  3. CThe consent of all parties must be written on the bond if a modification or interlineation is made after the bond is signed but prior to the approval of the bond by CBP.
  4. DA new bond is required, which will supersede the existing bond, when a change is made after approval of the bond by CBP.
Show the answer and explanation
Correct answer: D  · Authority: 19 CFR 113.23

The correct answer is D because 19 CFR 113.23(d) explicitly states that after CBP approves a bond, changes are not permitted unless authorized by regulation or the Commissioner, and a new bond must be executed to supersede the existing one. Option A is incorrect because 19 CFR 113.23(b) requires a statement by the surety or sureties for alterations made prior to signing. Option B is incorrect because 19 CFR 113.23(c) mandates written consent from all parties for post-signing alterations before CBP approval, not a new bond. Option C is incorrect because 19 CFR 113.23(c) prohibits modifications or interlineations after signing unless authorized, requiring a new bond instead of merely obtaining consent.

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