October 2018 Customs Broker Exam

Correct answer: D  · Authority: 19 CFR 152.103(a)

The correct answer is D because the entered value is the price actually paid or payable, as per 19 CFR 152.103(a), which explicitly states that transaction value is determined without regard to additional costs like duties, freight, or taxes. The 47,780 ex-factory price is the agreed-upon amount paid by the importer, and the other charges (duties, MPF, HMF, inland freight) are not included in the transaction value under the regulation. Options A, B, and C incorrectly subtract or add costs not part of the transaction value, while E erroneously includes all charges, none of which are part of the entered value calculation.

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.

Correct answer: C  · Authority: 19 CFR 133.25(a)

The correct answer is C because 19 CFR 133.25(a) explicitly states that merchandise subject to restrictions under §§ 133.22 and 133.23 is detained for 30 days from the date it is presented for CBP examination. The 5-day notice period mentioned in the same section refers to informing the importer after the detention decision, not the detention duration itself. Options A, B, D, and E are incorrect because they misstate the timeframe or reference the "date of entry" instead of the "date of presentation for examination," which is the key trigger in the regulation.

Correct answer: D  · Authority: 19 CFR 171.2 (b)

The correct answer is D because 19 CFR 171.2(b)(1) explicitly states that petitions for relief from seizures must be filed within 30 days from the date of mailing of the notice of seizure. Options A and C reference the "Notice of Detention," which is not mentioned in the regulation; the statute applies to "Notice of Seizure," not detention. Option B is incorrect because it specifies 10 days, which does not align with the 30-day requirement in the cited rule. Option E refers to 60 days, which applies to penalties under 171.2(b)(2), not seizures.

Correct answer: B  · Authority: 19 CFR 159.31 19 CFR 159.34

The correct answer is B) 150,000 because 19 CFR 159.31 and 19 CFR 159.34 require the use of the certified exchange rate on the date of shipment (March 25, 2018), which was 1.50. The value is calculated by multiplying the invoice amount (100,000 GBP) by this rate, resulting in 150,000. Options A, C, D, and E are incorrect because they either use the wrong exchange rate (e.g., the April 3 rate in C) or misapply the rules by ignoring the shipment date requirement. The regulations explicitly prioritize the certified rate on the shipment date, not the arrival date or any other arbitrary rate.