CBLEsim

Exam topic · 96 questions in the bank

Broker Compliance questions from past customs broker exams

CBP's released exams return to broker compliance every sitting: it is 96 of the 1,129 current-law questions in the CBLEsim bank. Drawn from 7 released sittings, April 2021 through October 2025. The 10 below are the ones that are not governed by a single controlling CFR section, so they are published here in full.

April 2021, Q13. At what value is a mail shipment REQUIRED to be formally entered for commercial merchandise imported into the United States, excluding special classes of merchandise?

  1. A$800.00
  2. B$2,000.00
  3. C$2,550.00
  4. D$10,000.00
  5. EThere is no specified value.
Show the answer and explanation
Correct answer: C  · Authority: 19 CFR 145.12(a)(2)

The credited answer is C) $2,550.00. The cited text reads: (a) Formal entries-(1) Discretionary. CBP may require formal entry of any mail shipment regardless of value if it is necessary to protect the revenue. (2) Required.

April 2025, Q9. Forty-two days ago, a customs broker knowingly hired a person convicted of a felony. At no point has the customs broker sought approval for this hire from CBP. Additionally, CBP is not aware of this hire. As of today, what is the heaviest single maximum penalty that can be assessed by CBP against this broker for not seeking approval from the appropriate Executive Director, Office of Trade for the felon's continued employment?

  1. A$5,000.00 penalty
  2. B$10,000.00 penalty and a suspension of their license
  3. C$25,000.00 penalty
  4. D$30,000.00 penalty and revocation of their license
Show the answer and explanation
Correct answer: C  · Authority: 19 CFR 171, Appendix C, VII(C)

The correct answer is C because 19 CFR 171, Appendix C, VII(C) specifies that the maximum penalty for a customs broker who knowingly hires a person convicted of a felony without CBP approval is 25,000. This is the highest single penalty explicitly stated in the regulation for this specific violation. Options A and B are incorrect because they do not reflect the maximum penalty outlined in the cited authority. Option D is incorrect because revocation of the license is not mentioned as a penalty under VII(C); such severe consequences would likely require additional factors or repeated violations not described in the question.

April 2025, Q11. Which of the following is a TRUE statement regarding decisions to remit or mitigate a penalty or cancel a claim for liquidated damages upon payment of a lesser amount?

  1. ADecisions to remit or mitigate a penalty or cancel a claim for liquidated damages upon payment of a lesser amount are filed in the Automated Commercial Environment (ACE) and are protestable within 365 days from the date of the initial penalty or claim.
  2. BDecisions to remit or mitigate a penalty or cancel a claim for liquidated damages upon payment of a lesser amount are only protestable if a paper protest is filed at the port of entry within 180 days from the date of the initial penalty or claim.
  3. CDecisions to remit or mitigate a penalty or cancel a claim for liquidated damages upon payment of a lesser amount are only protestable if protested in person to the CBP, Chief of Penalties Branch within 180 days from the date of the initial penalty or claim.
  4. DDecisions to remit or mitigate a penalty or cancel a claim for liquidated damages upon payment of a lesser amount are not protestable.
Show the answer and explanation
Correct answer: D  · Authority: 19 CFR 172.22(a)

The correct answer is D because 19 CFR 172.22(a) explicitly states that decisions to remit, mitigate, or cancel claims for liquidated damages are not protestable under 19 U.S.C. 1514. Options A, B, and C incorrectly assume protestability, which is prohibited by the regulation. The text clarifies that such decisions are not subject to protest, regardless of filing method or time frame.

April 2025, Q13. Which of the following statements is legally TRUE regarding a customs broker conducting "customs business?”

  1. AA customs broker may outsource the preparation of entries to a company located in India, but the entry must be transmitted by the broker.
  2. BA customs broker must designate a knowledgeable point of contact to be available to CBP during (but not outside of) normal business hours to respond to customs business issues.
  3. CA customs broker residing in the U.S. but on vacation in Europe may transmit entries as long as they have a secure Internet connection.
  4. DA customs broker may hire a remote employee living in Puerto Rico to help determine classification of merchandise.
Show the answer and explanation
Correct answer: D  · Authority: 19 CFR 101.1; 19 CFR 111.3(a); 19 CFR 111.3(b)

The correct answer, D, is legally true because Puerto Rico is within the "customs territory of the United States" as defined in 19 CFR 101.1, allowing a customs broker to hire a remote employee there to assist with classification. Option A is incorrect because 19 CFR 111.3(a) requires the broker to prepare and transmit entries themselves, not outsource preparation. Option B is incorrect because 19 CFR 111.3(b) does not mandate availability only during business hours for the point of contact. Option C is incorrect because the broker must be physically located within the customs territory (as per 19 CFR 101.1), and Europe is outside that territory.

May 2024, Q2. Number One Car Company (NOC Co.) is an existing importer whose account is not in frozen or void status with the CBP Office of Finance Revenue Division and whose account is assigned to the Automotive and Aerospace Center of Excellence and Expertise (A&A Center). NOC Co.’s broker is Jack Frost Customhouse Broker (Jack Frost). Jack Frost is licensed and has his National Permit through Los Angeles/Long Beach and his processing Center is the Electronics Center of Excellence and Expertise (Electronics Center). NOC Co. has advised Jack Frost that it is adopting an alternate name of NOC Co. as it has permission from its State of incorporation. Which of the following correctly states a method Jack Frost can use to notify CBP of NOC Co.'s adoption of an alternate name?

  1. AJack Frost will email a completed and signed Customs Form 5291 showing the NOC Co.’s alternate name to the A&A Center.
  2. BJack Frost will use NOC Co.'s ACE Portal account to create an Importer Certifying Statement showing the adoption of the alternate name.
  3. CJack Frost will email a completed and signed Customs Form 5106 showing NOC Co.'s alternate name to the A&A Center.
  4. DJack Frost will follow the change of name instructions found in 19 CFR 111.30(c) and email the Electronics Center with NOC Co.'s alternate name.
Show the answer and explanation
Correct answer: C  · Authority: ACE BRPD Chapter 23, Section 23.6 23.10

The correct answer is C because the ACE BRPD Chapter 23, Section 23.6 and 23.10 explicitly state that changes to importer identification, including the adoption of an alternate name, must be reported using Customs Form 5106. This form is specifically designated for updating importer records with CBP. Option A is incorrect because Customs Form 5291 is unrelated to name changes and is used for customs bonds. Option B is incorrect because the ACE Portal does not handle name changes for importers; such updates require a formal form submission. Option D is incorrect because 19 CFR 111.30(c) governs name changes for importers but does not specify the use of Form 5106, which is mandated by the cited ACE BRPD sections.

May 2024, Q15. 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?

  1. AA $45,000.00 penalty may be assessed against the client under 19 USC 1497, but no penalty will be assessed against the broker as only one penalty may be assessed.
  2. BA $45,000.00 penalty may be assessed against the broker under 19 USC 1641(d)(1)(D), and a $45,000.00 penalty may be assessed against the client under 19 USC 1497.
  3. CA $30,000.00 penalty may be assessed against the broker under 19 USC 1641(d)(1)(D), and a $45,000.00 penalty may be assessed against the client under 19 USC 1497.
  4. DA $30,000.00 penalty under 19 USC 1641 may be assessed against the broker and the client jointly, because penalties against a broker may not exceed $30,000.00.
Show the answer and explanation
Correct answer: C  · Authority: 19 CFR 171, Apx C Section VI(D)(1)

The correct answer is C because 19 USC 1641(d)(1)(D) limits a customs broker’s penalty to the lesser of the value of the goods or 30,000, which applies here (30,000). Under 19 USC 1497, the client (importer) may be penalized the full value of the undervalued or undeclared goods (45,000) if they knowingly failed to declare dutiable items. Options A and B incorrectly assume the broker’s penalty could exceed 30,000, while D misstates that penalties may be assessed jointly, which is not permitted under the statute.

October 2022, Q76. What must a corporate broker do to continue to conduct Customs business after the corporate officer who qualified its license retires?

  1. ASubmit a request for a waiver to CBP allowing continued use of the broker’s license to conduct Customs business.
  2. BAppoint a new broker as an officer of the corporation and notify CBP of the new license qualifier.
  3. CSubmit a power of attorney to CBP from the retiring license qualifier.
  4. DNotify the port director in writing that the broker has retired and is no longer an officer of the corporation but will continue to be the license qualifier.
  5. ENotify the broker who is retiring to surrender the broker’s license to CBP for cancellation.
Show the answer and explanation
Correct answer: B  · Authority: 19 CFR 111

The correct answer is B because 19 CFR 111.15 requires a corporation to have a licensed broker as an officer to qualify for a license. When the qualifying officer retires, the corporation must appoint a new licensed broker as an officer and notify CBP, ensuring compliance with the regulation. Options A, C, D, and E do not address the requirement to replace the qualifying officer, which is explicitly mandated by 19 CFR 111.15. A waiver (A) or power of attorney (C) is irrelevant here, while D and E fail to resolve the need for a new qualifier.

October 2023, Q30. How many characters is the unique filer code assigned by CBP to qualified licensed Customs brokers and self-filing importers?

  1. ATwo (2)
  2. BThree (3)
  3. CFour (4)
  4. DFive (5)
Show the answer and explanation
Correct answer: B  · Authority: ACE BRPD Chapter 2

The correct answer is B because the unique filer code assigned by CBP to qualified licensed customs brokers and self-filing importers is three characters long, as specified in ACE BRPD Chapter 2. Options A, C, and D are incorrect because they do not align with the specific requirement outlined in the cited authority, which explicitly states the three-character format for filer codes. Other options may reflect common misconceptions or unrelated CBP code structures, but the authority directly confirms the three-character rule.

October 2024, Q14. Which ONE of the following is subject to mandatory seizure under 19 USC 1595a(c)?

  1. AMerchandise that is stolen, smuggled, or clandestinely imported or introduced.
  2. BMerchandise in which copyright, trademark, or trade name protection violations are involved.
  3. CMerchandise marked intentionally in violation of 19 USC 1304.
  4. DMerchandise that requires a license to import and is not accomplanied by such license.
Show the answer and explanation
Correct answer: A  · Authority: 19 CFR 162.23(a)

The correct answer is A because 19 CFR 162.23(a)(1) explicitly mandates seizure of merchandise that is stolen, smuggled, or clandestinely imported, directly aligning with option A. The other options are addressed in 19 CFR 162.23(b), which permits, but does not mandate, seizure for violations such as copyright/trademark infringement (b)(3), marking violations (b)(5), or missing licenses (b)(2). These are permissive, not mandatory, under the cited authority.

October 2025, Q4. What are the requirements for CBP to consider an offer in compromise under the Tariff Act of 1930 (as amended) arising from a violation of Customs law?

  1. ATender of a 20% deposit of the total sum offered and an offer in writing.
  2. BTender of the specific sum offered and an offer in writing.
  3. CTender of the domestic value of the claim and an offer in writing.
  4. DTender of at least $1,000.00 and an offer in writing.
Show the answer and explanation
Correct answer: B  · Authority: 19 CFR 161.5

The correct answer is B because 19 CFR 161.5(b) explicitly requires that an offer in compromise must include a specific sum tendered and that this amount must be deposited with the Treasurer of the United States or a Federal Reserve bank. The regulation does not mention a percentage deposit (eliminating A), domestic value (eliminating C), or a minimum amount like 1,000 (eliminating D). The requirement for a written offer is also mandated by 19 CFR 161.5(a), which aligns with option B.

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