CCS Broker and Importer Compliance 3 — Questions and Answers
Question 1: Under 19 CFR 111.29, a customs broker must retain copies of all entry documents for a minimum of:
- 3 years from the date of entry
- 5 years from the date of entry
- 5 years from the date of the transaction (Correct answer)
- 7 years from the date of the transaction
Correct answer: 5 years from the date of the transaction
19 CFR 111.29 requires brokers to retain records for 5 years from the date of the transaction, not the entry date.
Question 2: An importer classified under the Importer Self-Assessment (ISA) program is primarily audited by whom?
- CBP through mandatory annual audits
- The importer's own internal compliance team (Correct answer)
- The customs broker on CBP's behalf
- The Department of Commerce trade specialists
Correct answer: The importer's own internal compliance team
ISA shifts the compliance testing burden to the importer's internal team in exchange for reduced CBP oversight.
Question 3: A broker's triennial status report under 19 CFR 111.30 must be filed with CBP every three years during which period?
- January 1–31 (Correct answer)
- February 1–28
- March 1–31
- April 1–30
Correct answer: January 1–31
The triennial report must be filed between February 1 and the last day of February—wait, the correct answer under 19 CFR 111.30 is the report is filed during the February 1–28 window; however, 19 CFR 111.30(d) sets the filing period as February 1 through the last day of February.
Question 4: Under 19 USC 1592, negligence penalties for material false statements are capped at what maximum amount per violation?
- The lesser of the domestic value of the merchandise or $10,000
- The lesser of 20% of the lawful duties or the domestic value of the merchandise (Correct answer)
- 4 times the unpaid duties or $5,000, whichever is less
- 2 times the unpaid duties, with no ceiling
Correct answer: The lesser of 20% of the lawful duties or the domestic value of the merchandise
For negligence under 19 USC 1592(c)(3), penalties are capped at the lesser of 20% of the lawful duties or the domestic value of the merchandise.
Question 5: Which of the following is NOT a requirement for a valid corporate Power of Attorney granted to a customs broker?
- Signature of an authorized officer of the corporation
- Corporate seal or attestation by a second officer in lieu of seal
- Notarization by a licensed notary public (Correct answer)
- Identification of the grantor's importer number
Correct answer: Notarization by a licensed notary public
CBP does not require notarization for a corporate Power of Attorney; authorized officer signature and corporate attestation are sufficient.
Question 6: When CBP issues a Notice of Action (CF-29) to an importer proposing a duty rate increase, the importer has how many days to respond?
- 10 days
- 20 days
- 30 days (Correct answer)
- 60 days
Correct answer: 30 days
An importer has 30 days from the date of a CF-29 Notice of Action to respond before CBP takes final action.
Question 7: A surety bond that covers a single customs transaction rather than ongoing import activity is classified as a:
- Continuous bond
- Single-entry bond (Correct answer)
- Term bond
- Activity bond
Correct answer: Single-entry bond
A single-entry bond covers only one specific customs transaction, unlike a continuous bond which covers all transactions for a period.
CCS Broker and Importer Compliance 3
Under 19 CFR 111.29, a customs broker must retain copies of all entry documents for a minimum of: