October 2022 Customs Broker Exam

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.

Q7. Which Customs Regulation provides the process for separating quantities of merchandise into separate entries and provides the exception to the rule that all merchandise arriving on one conveyance and consigned to one consignee must be included on one entry, under the facts of this Practical Exercise?

1. ANone, because the importer or broker decides how many entries to file for a quantity of merchandise arriving on one conveyance and consigned to one consignee.
2. B19 CFR, Part 10
3. C19 CFR 141.51
4. D19 CFR 141.52(g)
5. E19 CFR 141.54(a)

Q31. 123 Import Company, a US importer, is seeking guidance on valuation methods for its various contracts with overseas vendors from whom it has imported or intends to import merchandise from a duly licensed broker. Which one of the following contracts would the broker advise 123 Import Company that transaction value cannot be the basis of appraisement on importation as the regulatory requirements for using transaction value are not met?

1. A123 Import Company has contracted with Y Toy Company abroad to purchase toys. The Y Toy company owes money to its creditor Z Factor Company. The Y Toy Company contract with 123 Import Company provides that 123 Import Company will pay Z Factor Company one-third of the purchase price and pay the remaining two-thirds to Y Toy Company. The contract price is for both payments.
2. B123 Import Company has contracted with Y Toy Company abroad to manufacture toys. 123 Import Company has contracted with, and will directly pay, Tiny’s Beads, a foreign manufacturer, to ship the plastic beads to Y Toy Company that it needs to manufacture the toys. The contract price is for Y Toy Company’s costs and profit.
3. C123 Import Company has contracted with 123 Export Company, an unrelated company abroad to import National Football League (NFL)-branded jerseys. 123 Import Company has an NFL license and pays a royalty to the NFL for every NFL-branded jersey it imports. The contract price is as determined by 123 Export Company in the signed contract.
4. D123 Import Company has contracted with X-treme Company abroad to import office chairs on consignment. 123 Import Company will offer the office chairs for sale in the US and pay X-treme Company within 10 days of the sale. The contract price is for 40% of the usual retail price of the chairs with payment due within 10 days of each sale.
5. E123 Import Company (importer) has contracted with New Company (seller) abroad to import 1000 units of a brand-new product for which the market in the US is uncertain. Importer agrees to pay seller $10.00 per unit immediately with an additional $10.00 upon the sale of each unit in the US. Seller will buy back any unsold merchandise in 180 days. The contract price is $10,000.00, plus $10 per unit due after sale.

Q64. A duly licensed broker has a power of attorney (POA) on file from Valley Computer Co., Inc. (Valley, Inc.), a publicly traded California corporation. Michael Valley called the broker and advised that he has reorganized Valley, Inc. and it is now a privately held corporation, incorporated in Delaware and it is also called Valley Computer Co., Inc. (Valley Delaware). Michael Valley, in his capacity as President of Valley Delaware, wants the broker to clear a shipment on an ocean cargo ship that will arrive in 20 days. Before entry can be filed, what action must the broker take regarding the POA?

1. ANo action need be taken because the Valley, Inc. POA does not expire.
2. BNo action need be taken because the standard POA language provides that successor companies are covered by the terms of the agreement with the Customs broker.
3. CReview the POA and, if the POA was signed by Michael Valley as an officer of the California corporation, no additional action need be taken.
4. DRequest a POA termination letter from the California corporation named Valley Computer Co., Inc.
5. ERequest a new POA from Michael Valley and the Delaware corporation named Valley Computer Co., Inc.

Q15. What is the proper CLASSIFICATION of a battery-operated scuba dive watch computer with a liquid crystal display (LCD) screen, exclusive of the strap/band? The scuba dive watch computer manages a watch mode and dive mode. The watch component features a 12/24 clock with minutes and seconds, a second time setting, an option to switch between primary and secondary time, a calendar, a stopwatch, a countdown, and an alarm. The scuba mode provides management of recreational dive profiles with a Bühlmann ZHL-16C decompression algorithm for 1 or 2 mixes (air, Nitrox, and mixes with O2% concentrations up to 99%). The dive watch computer contains an LCD screen and an adjustable backlight. The subject article is designed to be worn on the wrist and is water resistant up to 100 meters. The case and the case back of the subject article are composed of stainless steel and the strap/band is made of rubber. The dive watch computer is covered with a rubber protector.

1. A8471.41.0150
2. B9102.12.8000
3. C9014.80.2000
4. D8543.70.8900
5. E9101.19.2080