CCS Broker and Importer Compliance 2 — Questions and Answers
Question 1: Under 19 CFR Part 111, a customs broker's license may be revoked or suspended for which of the following violations?
- Charging fees above the broker's posted tariff schedule
- Transacting customs business while the broker's permit is suspended (Correct answer)
- Failing to maintain a separate trust account for client funds
- Refusing to represent an importer with a poor compliance history
Correct answer: Transacting customs business while the broker's permit is suspended
Transacting customs business while a permit is suspended is a direct violation of 19 CFR 111 and grounds for license revocation or suspension.
Question 2: An importer of record must retain entry records for a minimum of how many years from the date of entry?
- 2 years
- 3 years
- 5 years (Correct answer)
- 7 years
Correct answer: 5 years
19 CFR 163.4 requires importers to retain entry records for 5 years from the date of entry.
Question 3: Which document serves as the primary authority granted by an importer to a customs broker to transact business on the importer's behalf?
- Customs bond (Form 301)
- Power of Attorney (Correct answer)
- Entry summary (CBP Form 7501)
- Importer Security Filing (ISF)
Correct answer: Power of Attorney
A Power of Attorney authorizes a customs broker to act as the importer's agent for customs transactions.
Question 4: A customs broker who discovers that a previously filed entry contained a material error is required to:
- Wait for CBP to discover the error during a focused assessment
- File a prior disclosure before CBP identifies the error to mitigate penalties (Correct answer)
- Refile the entire entry with corrected information
- Notify the importer only and take no further action
Correct answer: File a prior disclosure before CBP identifies the error to mitigate penalties
Filing a prior disclosure under 19 USC 1592(c)(4) before CBP discovers an error significantly reduces potential penalties.
Question 5: Under the Customs Modernization Act, which party bears the ultimate responsibility for exercising 'reasonable care' in making entry?
- The customs broker as the licensed professional
- The importer of record (Correct answer)
- The freight forwarder arranging transportation
- CBP through its trade compliance programs
Correct answer: The importer of record
The Customs Modernization Act places the legal obligation of reasonable care on the importer of record, not the broker.
Question 6: When a customs broker operates under a continuous bond, the bond amount must be at least what percentage of the duties, taxes, and fees paid in the prior calendar year?
- 5%
- 10% (Correct answer)
- 15%
- 20%
Correct answer: 10%
Continuous bonds must be set at a minimum of 10% of duties, taxes, and fees paid in the prior year, with a minimum of $50,000.
Question 7: Which CBP program allows trusted importers to receive expedited release of low-risk shipments in exchange for supply chain security commitments?
- Focused Assessment Program (FAP)
- Customs-Trade Partnership Against Terrorism (C-TPAT) (Correct answer)
- Remote Location Filing (RLF)
- Importer Self-Assessment (ISA)
Correct answer: Customs-Trade Partnership Against Terrorism (C-TPAT)
C-TPAT is the voluntary supply chain security program that grants trusted importers expedited processing benefits.
CCS Broker and Importer Compliance 2
Under 19 CFR Part 111, a customs broker's license may be revoked or suspended for which of the following violations?