**Series 200** **Test No. 581**

**April 2001**

**United States of America**

**CUSTOMS SERVICE**

**Customs Broker Licensing Examination**

**DIRECTIONS TO THE COMPETITOR - READ CAREFULLY**

This examination consists of 80 questions. A passing score is 75%. You
are to choose the correct answer to each question from among the five
alternatives (**A**, **B**, **C**, **D**, or **E**) presented. Then,
record your answer on the separate answer sheet by darkening the answer
space, which corresponds to the letter of the alternative you chose.

You may refer **ONLY** to the following:

> \- **[Harmonized Tariff Schedule of the United States
> (2000)]{.underline}** (USITC Publication 3378)
>
> (No supplements)
>
> \- **[Title 19, Code of Federal Regulations]{.underline}** (19 CFR
> Parts 1 to 199) Revised as of April 15, 2000

Applicants are responsible for having current references. Although you
may also use the Customs Regulations received by subscription or
privately printed reprints of the two specified references, Customs does
not guarantee that they are up to date, and their use is at the
applicant's risk.

You may use a silent battery-operated calculator.

There is no penalty for guessing. Therefore, it is to your advantage to
answer every question that you can, even if you are not sure of the
correct answer.

The examination lasts 4 hours. When you finish, give this booklet and
your answer sheet to the test administrator.

**DO NOT TURN THIS PAGE UNTIL TOLD TO DO SO BY THE EXAMINER.**

1)  When goods are prima facie, classifiable under two or more headings,
    which **ONE** of the following is a true statement?

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A)  The goods are always classified under the heading that occurs last
    in numerical order among those headings that equally merit
    consideration.

B)  The heading that provides the most specific description shall be
    preferred to headings providing a more general description.

C)  When two or more headings each refer to part only of the materials
    or substances contained in mixed or composite goods or to part only
    of the items in a set put up for retail sale, the heading with the
    most complete or precise description of the goods is to be used.

D)  Mixtures shall be classified according to the main ingredient by
    description.

E)  Each component of a set put up for retail sale must always be
    classified separately.

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2)  Which **ONE** of the following is not an acceptable method of
    collection of Customs duties, taxes, fees, interest, and other
    charges?

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A)  Any form of United States currency or coin legally current at the
    time of acceptance.

B)  Any bank draft or cashiers check, drawn on a national or state bank
    or

> trust company of the United States, or a bank in Puerto Rico or any
> possession of the United States.

C)  An uncertified check drawn by an interested party on a national or
    state bank or trust company of the United States, or a bank in
    Puerto Rico, or any possession of the United States.

D)  A United States Government Check endorsed by the payee to the U.S.
    Customs Service, a domestic traveler's check, or a U.S. postal,
    bank, express, or telegraph money order.

E)  Any Foreign Currency.

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3)  Which one of the following procedures constitutes an "assembly"
    operation for purposes of classification under 9802.00.80, the
    provision for foreign articles assembled with U.S. components?

####  Painting

####  Laminating

A)  Mixing ingredients in a soup

B)  Smelting

C)  Inspecting and packing fruit

# A shipment of canned tuna made in Spain and subject to a tariff-rate quota arrives in Miami, Florida. The quota for this merchandise is filled. The importer may choose to do all of the following **EXCEPT** \_\_\_\_\_\_\_\_\_. Which **ONE** of the following choices correctly fills in the blank?

A)  Pay the reduced rate of duty

B)  Pay the higher rate of duty

C)  Place the merchandise in a foreign trade zone

D)  Enter the merchandise for warehouse

E)  Export or destroy the merchandise under Customs supervision

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4)  A new business, Cleanse Free, imports its first shipment of cleaning
    supplies manufactured in Japan. The entry is secured by a single
    entry bond. Cleanse Free files the entry summary twelve working days
    after the time of entry, which was the date the merchandise was
    released by Customs. Customs issues a demand for liquidated damages
    for failure to file the entry summary timely. The demand for
    liquidated damages should be issued in what amount?

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A)  Two times the bond amount.

B)  Three times the bond amount.

C)  One times the bond amount.

D)  Half the bond amount.

E)  Five times the bond amount.

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5)  Any funds received from a client for payment to the U.S. government
    that are received by the broker after the date due shall be
    transmitted by the broker to the U.S. government within
    \_\_\_\_\_\_\_ working days after receipt. Funds received by a
    broker from the U.S. government that are owed to a client must be
    paid to the client or accounted for in writing to the client within
    \_\_\_\_\_\_\_ calendar days of receipt. Which one of the following
    choices correctly fills in the two blanks?

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A)  5 ; 10

B)  10 ; 10

C)  10 ; 60

D)  5 ; 60

E)  10 ; 30

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6)  ABC bonded warehouse has had four final withdrawals made on November
    1, 2000. Unless otherwise exempted, the warehouse proprietor must
    submit the permit file folders to Customs by \_\_\_\_\_\_\_\_ to
    avoid issuance of liquidated damages. Which one of the following
    choices correctly fills in the blank?

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A)  November 6, 2000

B)  December 1, 2000

C)  November 30, 2000

D)  November 8, 2000

E)  December 14, 2000

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7)  Which one of the following is **NOT** a condition of a basic
    importation and entry bond?

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A)  Agreement to pay duties, taxes and charges.

B)  Agreement to comply with electronic entry filing requirements.

C)  Agreement to produce documents and evidence.

D)  Agreement to rectify any non-compliance with provisions of
    admission.

E)  Agreement to enter any diverted instruments on international
    traffic.

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8)  Under the immediate delivery procedures, the time of entry shall be
    the time when \_\_\_\_\_\_\_\_\_. Which **ONE** of the following
    choices correctly fills in the blank?

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A)  The merchandise enters the port limits

B)  The special permit for immediate delivery is filed

C)  The appropriate Customs officer authorizes release of the
    merchandise

D)  The entry summary is filed in proper form with estimated duties
    attached

E)  The entry summary is transmitted via the Automated Broker Interface
    (ABI)

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9)  Jose Garcia passes the April 2000 brokers exam. He receives his
    license in November 2000. Mr. Garcia should file his first triennial
    status report by \_\_\_\_\_\_\_\_, and pay the accompanying status
    report fee of \_\_\_\_\_\_\_\_\_, to avoid having his license
    suspended. Which **ONE** of the following choices correctly fills in
    the two blanks?

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A)  February 2003; \$100.00

B)  February 2002; \$200.00

C)  February 2001; \$100.00

D)  April 2003; \$200.00

E)  November 2003; \$100.00

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10) Which one of the following types of merchandise may **NOT** be
    entered by an appraisement entry?

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A)  Personal effects of a citizen of the United States who has died
    abroad.

B)  Household effects imported for sale in the United States.

C)  Tools of trade of a person arriving in the United States.

D)  Goods damaged by accidental fire on the voyage of importation.

E)  Merchandise recovered from a wrecked or stranded vessel.

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11) In the absence of a request for accelerated disposition, which
    **ONE** of the following issues requires the Port Director to act on
    a protest within 30 days from the date that the protest was filed?

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A)  Country of origin marking of imported merchandise.

B)  Valuation of merchandise.

C)  The exclusion of merchandise.

D)  Drawback of duties.

E)  Classification of merchandise.

# A shipment valued at \$175.00 arrives by a commercial carrier. This shipment qualifies for informal entry and meets the requirements of section 10.151 of the Customs regulations. The bill of lading representing the entry must contain all of the following **EXCEPT** \_\_\_\_\_\_\_. Which **ONE** of the following choices correctly fills in the blank?

A)  Country of origin of the merchandise

B)  Shipper name, address and country

C)  Quantity

D)  Ultimate Consignee number

E)  Value

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14) Muy Frio, SA de CV in Mexico just received an order for 20,000 air
    conditioning window units (8415.10) from the Iceman. The Iceman
    needs to save as much money as possible because of his high
    electricity bill and would like to claim NAFTA on the air
    conditioning window units. He visits your office and asks for your
    expertise. The bill of materials reads as follows:

> [Component Qty/a-c unit Country of origin Cost/unit]{.underline}

Condenser 1 Mexico \$15.00

Compressor 1 U.S. \$55.00

Chassis 1 Germany \$ 5.00

Evaporator 1 U.S. \$30.00

Control Panel 1 France \$12.00

> The Iceman also tells you that the sale is at an arms length
> transaction and the transaction value accepted by U.S. Customs is
> \$137.00 per unit. Do the air conditioning units qualify for NAFTA?

A)  Yes, under criteria A; all components are "wholly obtained or
    produced" in a NAFTA country.

B)  Yes, under criteria B; each of the non-originating components made
    the necessary tariff shift as required by GN12(t) of the HTSUS.

C)  Yes, under criteria B; some of the non-originating components did
    not make the necessary tariff shift as required under GN12(t) of the
    HTSUS, but the good satisfies the De Minimis Rule.

D)  Yes, under criteria B; each of the non-originating components made
    the necessary tariff shift and the good satisfies the applicable
    regional value-content as required by GN12(t).

E)  No. The air conditioning units do not qualify for NAFTA.

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15) For statistical purposes, the HTSUS lists many symbols and
    abbreviations which should be used to represent certain meanings.
    Which one of the following is **NOT** listed as a symbol or
    abbreviation representing a given meaning?

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A)  "GBq" = gigabecquerels

B)  "Mck" = Maganese chlorocarbonate in kilograms

C)  "Jwls" = Number of dutiable jewels

D)  "Vkg" = Vanadium content in kilograms

E)  "ode" = ozone depletion equivalent

# All of the following entities, except one, may request a country-of-origin advisory ruling or final determination relating to the Government Procurement Act under Title III, "Trade Agreements Act of 1979". Which **ONE** of the following is the exception?

A)  A foreign manufacturer, producer, or exporter of merchandise.

B)  A manufacturer, producer, or wholesaler in the United States of a
    like product.

C)  United States members of a labor organization whose members are
    employed in the manufacture, production, or wholesale in the United
    States of a like product.

D)  Trade associations, a majority of whose members manufacture,
    produce, or wholesale a like product in the United States.

E)  Trade associations, a majority of whose members manufacture,
    produce, or wholesale a like product in a country other than the
    United States.

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16) For country of origin marking purposes, abbreviations, which
    unmistakably indicate the name of the country of origin, are
    acceptable according to the U.S. Customs Regulations. Which one of
    the following abbreviations is **UNACCEPTABLE**?

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A)  "Gt. Britain" for "Great Britain"

B)  "Luxemb" for "Luxembourg"

C)  "C.R." for "Czech Republic"

D)  "Brasil" for "Brazil"

E)  "Italie" for "Italy"

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18) Specific Electric imports control instruments for use in heating
    systems from Canada. The HTSUS classification is 9032.89.6025. The
    materials used are:

> -thermostats (9032.10) Canada \$ 2.50
>
> -wiring harnesses (8544.51) U.S. \$ 5.75
>
> -printed circuit board (8534.00) Japan \$ 3.25
>
> -diodes (8541.10) Germany \$ 2.50
>
> -transistors (8541.21) Italy \$ 2.00
>
> -integrated circuit (8542.13) Mexico \$ 8.50
>
> The transaction value of the control instruments is \$47.50. Do the
> control instruments qualify for NAFTA?

A)  Yes, under criteria A; all components are "wholly obtained or
    produced" in a NAFTA country.

B)  Yes, under criteria B; each of the non-originating components made
    the necessary tariff shift as required by GN12(t) of the HTSUS.

C)  Yes, under criteria B; some of the non-originating components did
    not make the necessary tariff shift as required under GN12(t) of the
    HTSUS, but the good satisfies the De Minimis Rule.

D)  Yes, under criteria B; each of the non-originating components made
    the necessary tariff shift AND the good satisfies the applicable
    regional value-content requirement as specified by GN12(t) of the
    HTSUS where the applicable rule specifies both a change in tariff
    classification and regional value requirement.

E)  No. The control instruments do not qualify for NAFTA.

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19) What is the correct classification of artificial flowers made of
    paper and assembled by binding with flexible materials?

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A)  4823.70.0000

B)  4823.90.8500

C)  6702.10.4000

D)  6702.90.3500

E)  6702.90.6500

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20) What is the correct classification of a fly fishing reel valued at
    \$120.00?

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A)  9507.10.0040

B)  9507.10.0080

C)  9507.30.4000

D)  9507.30.6000

E)  9507.90.8000

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21) Classify a baby's (18 months) matching color-coordinated woven dress
    and bonnet imported together to the U.S. from Jamaica. The dress is
    constructed of 45% polyester by weight and 55% cotton fabric by
    weight. The bonnet is constructed of 100% cotton material. At the
    time of importation, both garments were entered into the U.S. on
    hangers in adjoining plastic bags.

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A)  6209.20.1000 and 6505.90.2030

B)  6209.20.1000

C)  6209.30.3020

D)  6209.30.3030

E)  6505.90.2030

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22) Which **ONE** of the following is the correct classification for 1.5
    liter bottles of 86.4 proof scotch whiskey?

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A)  2207.10.3000

B)  2207.20.0000

C)  2208.30.3030

D)  2208.30.3060

E)  2208.30.6085

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23) A domestic water dispensing machine is imported. It consists of a
    closed metal frame that acts as a stand and a case. It holds a large
    bottle of water inverted on top. The water flows by gravity into two
    small tanks inside the metal frame. One tank is fitted with an
    electrical element that heats the water. The other tank is fitted
    with electric cooling coils that cool the water. The two tanks are
    of equal size. On the outside of the frame case are two spouts that
    are valve operated. One spout is for the hot water and one is for
    the cold water. They are side by side and are of equal size. Which
    **ONE** of the following is the correct classification of this water
    machine?

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A)  7323.94.0080

B)  8418.69.0020

C)  8419.89.9020

D)  8419.89.9060

E)  8516.10.0080

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24) Which **ONE** of the following is the correct classification of a
    shipment of leather insoles for shoes made wholly of composition
    leather?

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A)  6406.10.0500

B)  6406.10.6500

C)  6406.10.9090

D)  6406.99.6000

E)  6406.99.9000

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25) Your client, a non-profit institution, plans to import a shipment of
    live tropical fish. The fish will be displayed at a public
    exhibition, then sold to a retail pet store approximately two weeks
    after the date of entry. You advise the client to properly classify
    the fish under which **ONE** of the following provisions?

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A)  0301.10.0000

B)  9817.00.7000

C)  0302.69.4070

D)  9810.00.7000

E)  0301.99.0000

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26) Supreme Clothiers imports top of the line women's dresses from Hong
    Kong. What is the correct quota/visa category of a 60% polyester,
    40% wool woven dress valued at \$100.00?

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A)  636

B)  no quota/visa category number

C)  436

D)  836

E)  336

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27) The Christi Hotel imports pairs of gold earrings from Singapore to
    sell in its lobby gift shop. The earrings are individually packed in
    pairs in flimsy cardboard boxes. The hotel pays \$25.00 for each,
    including \$0.50 for the box. Using principles of classification,
    which **ONE** of the following is correct?

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A)  Classified under 4819.20.0040 with a value of \$25.00.

B)  Classified under 7113.19.5000 with a value of \$24.50.

C)  Classified under 7113.19.5000 with a value of \$0.50 and under
    4819.20.0040 with a value of \$24.50.

D)  Classified under 7113.19.5000 with a value of \$25.00 and under
    4819.20.0040 with a value of \$0.50.

E)  Classified under 7113.19.5000 with a value of \$25.00.

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28) Sands of Time Watch Retailers recently imported 50,000 reptile
    leather watch straps at a total value of \$112,000.00. The shipment
    included only the straps and was imported from Argentina. The watch
    straps will be attached to watches at Sands of Time's corporate
    facilities in Charleston, SC. What is the correct classification of
    the watch straps?

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A)  9102.19.60

B)  9102.29.60

C)  9113.20.20

D)  9113.90.80

E)  4203.40.30

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29) You are the importer of leather guitar strings, which you sell
    wholesale to retailers around the country. What is the correct
    classification of the guitar strings used only with guitars?

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A)  9209.92.8000

B)  9209.99.8000

C)  4204.00.6000

D)  4205.00.4000

E)  4205.00.8000

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30) The Mar-Stone Institute imports marble slabs originating in Italy.
    The slabs meet the Customs definition of "slabs." What is the
    correct classification of the marble slabs?

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A)  6802.91.1500

B)  6802.91.0500

C)  6802.21.5000

D)  6802.10.0000

E)  6801.00.0000

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31) Conveyor belts of vulcanized rubber are being imported by the Audrey
    McBeal Company. The belts are reinforced with plastics only. What is
    the correct classification of the conveyor belts?

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A)  3926.90.5900

B)  3926.90.6090

C)  4010.12.9000

D)  4010.13.0000

E)  4010.19.9000

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32) Funky Fences Inc. is a hardware store in Blaine, Washington. Funky
    Fences imports many different types of wire for their fence making
    operations. You are the broker and must classify the latest shipment
    imported from Canada. Funky Fences describes the wire to you as
    round wire with a diameter of 1.4 mm; it is made of zinc-plated,
    non-alloy steel, and contains 1% carbon. What is the proper
    classification of this wire?

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A)  7217.20.4560

B)  7217.90.5090

C)  7217.10.8075

D)  7212.20.0000

E)  7210.30.0000

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33) Oceanic Melodies, a music company, imports and sells all kinds of
    musical instruments. A shipment has just arrived in Los Angeles, CA
    from England. The shipment consists of 1000 violins (valued at
    \$60.00 per), 1000 violin bows, 500 violas, 600 guitars, and 275
    viola cases. What is the correct classification of the bows?

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A)  9202.90.6000

B)  9202.90.4000

C)  9202.10.0000

D)  9202.92.6000

E)  9202.92.8000

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34) Tomato Heaven Inc. imports tomatoes from Mexico. You have before you
    a shipment of field-grown cherry tomatoes entered November 16, 2000.
    What is the correct classification?

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A)  0702.00.2035

B)  0702.00.4030

C)  0702.00.6010

D)  0702.00.6035

E)  0702.00.6095

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35) LaDonna makes additional money by playing her harp at weddings. At
    her cousin's wedding in Chicago, Illinios, she was furiously playing
    a wedding song when a harp string broke. She went to the local music
    store, which had just received a shipment of her favorite brand of
    replacement harp strings. What is the correct classification of the
    replacement harp strings imported by the local music store?

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A)  9202.10.0000

B)  9202.90.6000

C)  9209.30.0000

D)  9209.92.6000

E)  9209.92.8000

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36) Blair Bensen is a potato farmer in Idaho. He imports all of his seed
    potatoes from Ireland in 50 kg sacks. Blair's latest shipment
    arrived one week ago in the Port of Seattle, Washington just in time
    for planting. How should you, the broker, classify his potatoes?

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A)  0710.10.0000

B)  1209.19.0000

C)  2004.10.8040

D)  2005.20.0070

E)  0701.10.0040

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37) Holiday Cheer, of New Orleans, Louisiana imports Christmas tree
    light sets from China. The lighting sets come in many styles. The
    latest shipment was a miniature wired set. What is the correct
    classification of this shipment?

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A)  9505.10.2500

B)  9505.10.1000

C)  9505.90.6000

D)  9405.30.0010

E)  9405.30.4000

### Oregon Trail Retailers recently imported backpacks manufactured in China. The backpacks were made of 100% cotton and were marked with a sewn-in label on the inside stating "CHINA." The backpacks were received by the retail customer, packaged inside a plastic wrap, which was labeled "OREGON QUALITY". They were imported through the Port of Portland, Oregon. Which **ONE** of the following statements is correct?

A)  The backpacks are appropriately marked because they were imported in
    Portland, Oregon.

B)  The backpacks are appropriately marked because they have a sewn-in
    label stating the country of origin.

C)  The backpacks are appropriately marked because they satisfy the
    cotton products marking requirements.

D)  The backpacks are appropriately marked because Oregon is not a
    country.

E)  The backpacks are not appropriately marked.

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39) Which **ONE** of the following determines classification, for legal
    purposes?

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A)  Title of Sections

B)  Alphabetical Index

C)  Table of Contents

D)  Section Notes

E)  Title of Chapter

# Wired Up Inc. imports electrical conductors from Mexico. The manufacturer, Wired Up de Mexico is related to Wired Up Inc. and the relationship influences the sales price. The production process uses copper wire from Japan. All other material used is of U.S. origin. The net cost of the electrical conductors is \$56.00 per unit. In order for the electrical conductors to qualify for NAFTA preferential duty treatment under Criterion B (General Note 12 (b)(ii)), the value of the copper wire used per electrical conductor must **NOT** be greater than \_\_\_\_\_\_\_\_\_\_. Which **ONE** of the following choices correctly fills in the blank?

A)  \$33.60

B)  \$22.40

C)  \$28.00

D)  \$56.00

E)  The value of the copper wire is irrelevant because the copper wire
    makes the necessary tariff shift.

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41) Laminate Industries in Seattle, Washington, sells laminated plywood
    sheets to the building and home improvement industries. It purchases
    its large plywood sheets from its parent company, Canadian
    Laminates, located in Alberta, Canada. Canadian Laminates imports
    the sheets from its British manufacturer and then sends them to the
    U.S. firm. The Canadian firm stopped manufacturing in Canada because
    the general expense cost skyrocketed to15%, while the profits were
    only 1% for these plywood laminate sheets. This was not the result
    of problems at Canadian Laminates, but reflective of the entire
    Canadian industry that produces these laminated products for export
    sales to the United States. In Britain plywood laminate producers
    are able to hold general expenses to 3%, while recouping a 7%
    profit. The correct basis of appraisement is Computed Value. The
    information available is as follows:

Materials \$10,000.00

Labor \$10,000.00

Fabrication \$ 1,000.00

General Expenses and Profit \$ 1,050.00

What is the correct computed value?

A)  \$22,543.00

B)  \$22,050.00

C)  \$23,100.00

D)  \$25,578.00

E)  \$24,360.00

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42) A foreign shipper sells 1000 leather attaché cases to a related U.S.
    importer. The foreign shipper does not sell to any unrelated person.
    Customs determines that the relationship between the foreign shipper
    and the U.S. importer influences the price. There is no identical or
    similar merchandise from the same country of production. The U.S.
    importer sells the attaché cases in their imported state to three
    domestic buyers approximately one month after importation. The first
    buyer purchases 350 cases for \$100.00 each. The second purchaser
    gets an even better deal, 400 cases for \$80.00 each. The third
    buyer snaps up the remaining 250 cases for \$75.00 each. The
    importer also incurred the following expenses:

-   Actual international transportation and insurance costs of
    \$2000.00;

-   Domestic transportation costs of \$1000.00;

-   Customs duties totaling \$500.00.

> In addition, the importer realized profits and general expenses of
> \$5.00 per case sold.
>
> What is the deductive value of the imported merchandise?

A)  \$71,500.00

B)  \$88,500.00

C)  \$80,000.00

D)  \$78,000.00

E)  \$77,500.00

```{=html}
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```
43) Fred's Salvage Place imports both ball bearings (8482.10.1040 --1.2%
    (MX)) and tapered roller bearings (8482.20.0040 -- 1.9% (MX)) from
    Mexico. Fred has a completed certificate of origin for both types of
    bearings from the manufacturer. He claims NAFTA at time of entry on
    all his bearing shipments from this particular Mexican manufacturer
    to take advantage of the lower duty rate. On one particular
    shipment, the part numbers were inverted and Fred mistakenly
    classified ball bearings as tapered roller bearings. Consequently he
    paid the 1.9% NAFTA duty rate instead of the correct 1.2% NAFTA duty
    rate. He does not discover the error until after the entry
    liquidates. He would like to get a refund for the additional duty
    and on September 5, 2000 requests your advice as a competent broker.
    He gives you the following information:

Import Date October 10, 1999

Entry Summary Date October 15, 1999

Liquidation Date March 15, 2000

Which **ONE** of the following actions would you advise him to take?

A)  File a 520(d) Post NAFTA Claim.

B)  File a 514 Protest.

C)  He's out of luck since it is past 90 days of liquidation.

D)  File a 520(c) Claim.

E)  Don't file anything, because U.S. Customs will assess 1592
    penalties.

# During a review of 1999 entry summaries, Reasonable Care Brokers discovered the omission of proceeds paid by OK Trades to the foreign seller on imports of lamps for 10 entries. Reasonable Care Brokers advises OK Trades to submit a Prior Disclosure to the U.S. Customs Service. To be accorded the full benefits of Prior Disclosure treatment, OK Trades must provide all of the following **EXCEPT** \_\_\_\_\_\_\_. Which **ONE** of the following choices correctly fills in the blank?

A)  Tender of actual loss of duties, taxes and fees or actual loss of
    revenue

B)  The class or kind of merchandise involved in the violation

C)  A list of all entry numbers for the 1999-year imports by OK Trades

D)  The material false statements, omissions, or acts including an
    explanation as to how and when they occurred

E)  The true and accurate information that should have been provided in
    the entry or drawback claim documents

```{=html}
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```
44) EXCEPT for foreign materials incorporated into a good of HTSUS
    Chapters 1-4, 7,8,11,12,15,17, 20 or into textile or apparel
    products, foreign materials that do not undergo the applicable
    change in tariff classification or satisfy the other applicable
    requirements under the Rules of Origin when incorporated into a good
    shall be disregarded in determining the country of origin of the
    good if \_\_\_\_\_\_\_. Which **ONE** of the following choices
    correctly fills in the blank?

```{=html}
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```
A)  The value of those materials is no more than 7 % of the value of the
    good

B)  The value of those materials is more than 7 % of the value of the
    good

C)  The value of those materials is more than 10 % of the value of a
    good of Chapter 22, HTSUS

D)  The total weight of those materials is not more than 7 % of the
    total weight of the good

E)  The value of all foreign materials is no more than 7 % of the value
    of the good

```{=html}
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```
45) AC Corp. sends U.S. hoses and tubing along with French fittings to
    be assembled into air conditioner (a/c) hoses in Mexico. The
    finished a/c hoses will then be imported back to the U.S. under the
    9802.00.80 provision. The Declaration by the Assembler should
    identify the description, value, quantity, and manufacturer of
    \_\_\_\_\_\_\_\_\_\_\_. Which **ONE** of the following choices
    correctly fills in the blank?

```{=html}
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```
A)  The finished a/c hoses

B)  The U.S. origin components

## The Mexican origin components

## The French origin components

C)  All components

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```
46) You are the broker for a large importer of woolen products from
    Scotland. At your client's request, you have filed a timely protest
    against the changed liquidation of several entries which resulted in
    an increase in the amount of duties assessed. After consultation
    with your client, you decide that you wish to supplement your
    protest in writing with several additional arguments. The reviewing
    officer will consider your additional arguments provided which
    **ONE** of the following requirements are satisfied?

```{=html}
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```
A)  No more than 30 days have gone by since the protest was filed.

B)  The Protestant applied for and was granted further review.

C)  The 90-day protest filing period has not yet expired.

D)  There has not yet been a disposition of the protest.

E)  The Protestant did not request accelerated disposition of the
    protest.

```{=html}
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```
47) Which **ONE** of the following is **NOT** required information on a
    certificate of manufacture and delivery?

```{=html}
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```
A)  Date of manufacture or production of the articles.

B)  HTSUS number for the imported merchandise to at least the 8^th^
    digit.

C)  The quantity, kind and quality of imported, duty-paid merchandise or
    drawback product designated.

D)  Date received at factory.

E)  The person to whom the article or drawback product is delivered.

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```
48) Which of the following is **NOT** considered an *Assembly Operation*
    under the provisions of 9802.00.80?

```{=html}
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```
A)  Riveting

##### Welding

B)  Force Fitting

C)  Fastening

D)  Mixing of liquids

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```
49) The Port Director may approve a blanket application to manipulate
    goods in a bonded warehouse for which **ONE** of the following time
    periods?

```{=html}
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```
A)  Up to 5 years

B)  Up to 90 days

C)  Any length of time, with the consent of the warehouse proprietor

D)  Up to 1 year

E)  Up to 1 month

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```
50) On November 11, 2000, LAC Ltd., of Quebec, consigned 4000 jewelry
    boxes to

> AJ Enterprises in Boise, Idaho. AJ, in turn, sells these boxes to two
> retail outlets throughout the United States. LAC has previously
> consigned identical merchandise in similar quantities to unrelated
> buyers in the United States. On October 28, 2000, LAC made an
> unrelated sale of identical Canadian produced boxes to DC Jewelers in
> Indianapolis, Indiana. Based on this information, the basis of
> appraisement for the 4000 jewelry boxes would be?

A)  Transactions Value

B)  Transaction Value of Identical merchandise bases on LAC's previously
    consigned merchandise

C)  Transaction Value of identical merchandise, based on the sale to DC
    Jewelers

D)  Computed Value

E)  Deductive Value

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```
51) You are the broker for Hanworth Industries. Hanworth wishes to file
    a drawback claim. You advise Hanworth that it may get a refund on
    all but which **ONE** of the following types of duties and fees
    paid?

```{=html}
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```
A)  Ordinary duties paid on an entry for consumption that has been
    finally liquidated.

B)  Marking duties.

C)  Duties tendered in connection with notices of prior disclosure.

D)  Voluntary tenders.

E)  Antidumping duties.

```{=html}
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```
53) The total time for which extensions of liquidation may be granted by
    the Port Director may not exceed \_\_\_\_\_ year(s). Which **ONE**
    of the following choices correctly fills in the blank?

```{=html}
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```
A)  1

B)  2

C)  3

D)  4

E)  5

```{=html}
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```
54) According to the Customs recordkeeping regulations, all but which
    **ONE** of the following persons are required to maintain records
    and render them available to Customs for examination?

```{=html}
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```
A)  A consumer who purchases an imported automobile from a domestic
    dealer.

B)  A person who exports goods to Canada or Mexico for which a
    Certificate of Origin was completed and signed.

C)  A Customs broker who enters merchandise for clients.

D)  An owner who imports merchandise into the Customs territory of the
    United States.

E)  A person who transports merchandise under bond.

```{=html}
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```
55) Which **ONE** of the following qualifies as "merchandise" under the
    Foreign Trade Zone regulations?

```{=html}
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```
A)  Lottery tickets.

B)  Firecrackers.

C)  A forklift for moving pallets of merchandise within the zone.

D)  Lumber imported for constructing a fence in the zone.

E)  A shipment of manifestos urging the overthrow of the U.S.
    government.

```{=html}
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```
56) Merchandise may remain in a bonded warehouse for a period not to
    exceed \_\_\_\_\_ year(s) from the date of importation. Which
    **ONE** of the following choices correctly fills in the blank?

```{=html}
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```
A)  1

B)  2

C)  3

######  5

D)  10

```{=html}
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```
57) Except for bills resulting from dishonored checks or dishonored ACH
    transactions, all other bills for duties, taxes, fees, interest, or
    other charges are due and payable within \_\_\_\_ days of the date
    of issuance of the bill. Which **ONE** of the following choices
    correctly fills in the blank?

```{=html}
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```
A)  10

###### 15

B)  30

C)  20

D)  90

# Best Brokers, Inc. decides to consolidate its records. Its notice of consolidation must include a detailed statement describing all of following **EXCEPT** \_\_\_\_\_\_. Which **ONE** of the following choices correctly fills in the blank?

A)  The methodology of record maintenance

B)  A list of Best's customs business activity locations

C)  All the records to be maintained at each consolidated location

D)  Any automated data processing to be applied

E)  The addresses at which BEST currently maintain its records

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```
59) An entry for consumption is the only acceptable form of entry if
    more than \_\_\_\_\_\_\_\_ have elapsed from the date of the
    original importation of merchandise received under an immediate
    transportation entry. Which **ONE** of the following choices
    correctly fills in the blank?

```{=html}
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```
A)  2 working days

B)  15 calendar days

C)  30 days

D)  6 months

E)  3 years

```{=html}
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```
60) Rockport Interiors of Texas sells seashell lamps. It sources them
    from a Mexican manufacturer, Luz, SA de CV. Rockport provides leased
    molds, engineering drawings, and the seashell components, all free
    of charge, to Luz. The molds are leased from an unrelated U.S. firm,
    Corpus Christi Molders, for \$200.00. They are worth \$4000.00. The
    freight bill from Corpus Christi to Luz is \$150.00. The engineering
    drawings were produced at Rockport Interiors and are valued at
    \$1000.00. The seashells were purchased from another unrelated firm
    for \$700.00 and cost an additional \$60.00 to ship to the Luz
    manufacturing facility. The invoice price for the lamps, excluding
    the above items, is \$14,000.00. What is the proper appraised value
    of the lamps, under Transaction Value, of the Instant Shipment?

# \$15,110.00

A)  \$18,910.00

B)  \$14,000.00

C)  \$19,910.00

D)  \$19,700.00

# An application for a national permit must include all of the following information **EXCEPT** \_\_\_\_\_\_\_. Which **ONE** of the following choices correctly fills in the blank?

A)  The applicant's broker license number and date of issuance

B)  The address and telephone number of the office designated as the
    office of record for national permit activities

C)  The list of activities for which the national permit will be used

D)  A receipt or other evidence showing payment of the permit and user
    fees

E)  The name, broker license number, office address, and telephone
    number of the individual broker who will exercise responsible
    supervision and control over the activities of the applicant,
    conducted under the national permit

```{=html}
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```
62) The period of time during which merchandise entered temporarily
    under bond may remain in the Customs territory of the United States
    may be extended for not more than \_\_\_\_\_\_\_\_ further period(s)
    of 1 year each, or such shorter period as may be appropriate. Which
    **ONE** of the following choices correctly fills in the blank?

###### One

A)  Two

B)  Three

C)  Four

D)  Five

# If upon examination of a protest for which an application for further review has been denied in whole or in part by the Port Director, the protest shall be reviewed by the Commissioner of Customs or his designee, provided the protest and application raised an issue in all of the following **EXCEPT** \_\_\_\_\_\_\_. Which **ONE** of the following choices correctly fills in the blank?

A)  The existence of an established and uniform practice

B)  The lack of uniformity of treatment

C)  Questions which have not been the subjects of a Headquarters, U.S.
    Customs Service ruling or court decision

D)  The preliminary examination for the purpose of determining the
    timeliness of the protest

E)  The interpretation of a court decision or ruling of the Commissioner
    of Customs or his designee

```{=html}
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```
64) A brokers license is required to carry out which **ONE** of the
    following activities for another person?

```{=html}
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```
A)  Making a vessel entry.

B)  Entering merchandise to be transported in bond.

C)  Paying import duties to Customs.

D)  Applying for privileged foreign status for merchandise in a foreign
    trade zone.

E)  An individual entering a single noncommercial shipment for another.

```{=html}
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```
65) When liquidation of an entry continues to be suspended beyond the
    \_\_\_\_\_year period due to a statute or court order, the entry
    shall be liquidated within \_\_\_\_\_\_\_\_days after removal of the
    suspension. Which **ONE** of the following choices correctly fills
    in the two blanks?

```{=html}
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```
A)  4 ; 90

B)  5 ; 60

C)  3 ; 30

D)  5 ; 90

E)  2 ; 30

```{=html}
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```
66) Distilled spirits warehoused under section 5214(a)(9), Internal
    Revenue Code, may be withdrawn only for the purpose
    of\_\_\_\_\_\_\_\_\_\_\_, either directly or after re-warehousing at
    the same or another port. Which **ONE** of the following choices
    correctly fills in the blank?

```{=html}
<!-- -->
```
A)  manipulation

B)  exportation

C)  re-importation

D)  domestic consumption

E)  manufacturing

# The Port Director may accept all of the following in lieu of sureties on bonds **EXCEPT** \_\_\_\_\_\_\_. Which **ONE** of the following choices correctly fills in the blank?

A)  U.S. money

B)  U.S. certificates of Indebtedness

C)  Treasury bills

D)  Treasury notes

E)  Savings bonds

```{=html}
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```
68) Which **ONE** of the following is not covered by a National Permit?

```{=html}
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```
A)  NCAP participation

B)  PATS

C)  Electronic Drawback Claims

D)  Employee Implant

E)  Representations after entry summary acceptance

```{=html}
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```
69) Which one of the following is **NOT** an allowable means of testing
    the acceptability of a related party transaction?

```{=html}
<!-- -->
```
A)  Looking at the price to see if it includes all costs plus a profit
    equal to a firm's overall profit over a representative period of
    time in sales of merchandise of the same class or kind.

B)  Looking at a previously determined test value to see if the related
    price closely approximates that price.

C)  Looking at a previously determined foreign value in the country of
    production.

D)  Finding that the price was based on a formula derived for the two
    related parties that was standard for the industry.

E)  Finding that the seller prices goods to non-related parties at the
    same prices.

```{=html}
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```
70) Pete files a consumption entry for perishable goods that is subject
    to absolute quota, electing immediate delivery on a Customs
    Form 3461. His merchandise is released January 2. The quota category
    for the merchandise Pete is importing closes on January 4. Pete
    files his entry summary with payment of duties on January 8. Which
    **ONE** of the following actions is correct?

```{=html}
<!-- -->
```
A)  Pete must file a corrected consumption entry and pay a higher rate
    of duty.

B)  Pete must file a temporary importation bond entry because his
    merchandise was released before the quota category closed.

C)  Pete must redeliver the merchandise, pay a higher rate of duty, and
    file a revised consumption entry.

D)  Pete must file a warehouse entry, export, or destroy the merchandise
    under Customs supervision.

E)  Pete will lose his special permit for immediate delivery.

# Merchandise unladen in which **ONE** of the following harbors is **NOT** subject to the Harbor Maintenance Fee?

# Vancouver, WA

A)  Washington, DC

B)  Silver Bay, MN

C)  Gary, IN

D)  Albany, NY

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```
71) Which one of the following may **NOT** be used as the basis of
    appraisement for valuation if other values cannot be determined?

```{=html}
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```
A)  The 90-day requirement for the sale of merchandise under Deductive
    value may be adjusted.

B)  Identical merchandise from a different country of production may be
    used.

C)  Previously determined values based on computed value may be used.

D)  Values of identical U.S. manufactured merchandise may be used.

E)  Date of exportation requirements for identical merchandise may be
    flexibly interpreted.

```{=html}
<!-- -->
```
72) A correction of a clerical error, mistake of fact, or other
    inadvertence pursuant to 520(c)(1), Tariff Act of 1930, as amended,
    must be filed within \_\_\_\_\_\_\_\_\_. Which **ONE** of the
    following choices correctly fills in the blank?

```{=html}
<!-- -->
```
A)  One year after liquidation

B)  One year of importation date

C)  One year of entry summary date

D)  Ninety days after liquidation

E)  Fifteen months of entry summary date

```{=html}
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```
73) Moneytree Inc. has submitted a purchase order to Trousers Unlimited
    for 100 dozen trousers. Trousers Unlimited buys cotton grown and
    harvested in the U.S. and sends it to France to be spun into yarn.
    The yarn is shipped to Italy where it is woven into fabric. The
    fabric is then sent to Belgium where it is dyed red. The red fabric
    finally goes to Spain where it is made into trousers. Moneytree Inc.
    then imports the trousers into the U.S. What is the country of
    origin of the trousers?

```{=html}
<!-- -->
```
A)  U.S.

B)  France

C)  Belgium

D)  Spain

E)  Italy

```{=html}
<!-- -->
```
74) Dutiable merchandise imported and afterwards exported is subject to
    duty on every subsequent importation into the Customs territory of
    the United States, even though duty may have been paid on the first
    importation. Which one of the following is **NOT** an exception to
    this statement?

```{=html}
<!-- -->
```
A)  Personal and household effects taken abroad by a resident of the
    United States and brought back on his return to this country.

B)  Domestic animals taken abroad for temporary pasturage purposes and
    returned after 1 year.

C)  Automobiles and other vehicles taken abroad for noncommercial use
    and returned.

D)  Articles exported under lease to a foreign manufacturer and
    returned.

E)  Professional books, implements, instruments, and tools of trade,
    occupation, or employment taken abroad by an individual and brought
    back on his return to the country.

```{=html}
<!-- -->
```
75) Which one of the following is **NOT** related to the transportation
    of merchandise in bond?

```{=html}
<!-- -->
```
A)  Entry for transportation & exportation

B)  Entry for exportation

C)  Entry for immediate transportation.

D)  Warehouse or re-warehouse withdrawal for transportation

E)  Immediate Delivery

```{=html}
<!-- -->
```
76) A shipment of shrimp is entered and released. It is later found to
    be prohibited. The Port Director demands its return to Customs
    custody. An entry summary and the deposit of estimated duties, if
    any, shall **NOT** be required provided an entry for exportation or
    an application to destroy the shrimp under Customs supervision is
    made within \_\_\_\_\_ days after the time of entry, and the
    exportation or destruction is accomplished promptly. Which **ONE**
    of the following choices correctly fills in the blank?

```{=html}
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```
A)  5

B)  10

C)  15

D)  30

E)  60

```{=html}
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```
77) Which **ONE** of the following is the time limit for filing an entry
    for transportation and exportation after release under immediate
    delivery is?

```{=html}
<!-- -->
```
A)  5 working days.

B)  15 calendar days.

C)  10 working days.

D)  30 working days.

E)  1 year.

```{=html}
<!-- -->
```
78) Total Communications located in Blue Bell, Pennsylvania is a wholly
    owned subsidiary of Web Com in Montreal, Quebec. When analyzing the
    invoiced sale price, you may use which **ONE** of the following to
    establish the acceptability of the price?

```{=html}
<!-- -->
```
A)  WebCom sells to all non-related Canadian company at the same price
    as the sale to Total Communications.

B)  WebCom has completed a NAFTA verification, and based on the
    Transaction Value Method, they have a Regional Value content of at
    least 60%.

C)  A significantly higher test value is available, and may be adopted
    as the Transaction Value of the Instant Shipment.

D)  WebCom's price to Total Communications is sufficient to recover all
    costs, plus their annual overall company profit of 5%.

E)  WebCom bases their price to Total Communications on a formula, which
    is a usual industry method.

```{=html}
<!-- -->
```
79) Which one of the following classifications does **NOT** represent
    eligible articles entitled to duty-free treatment under the
    Caribbean Basin Initiative?

```{=html}
<!-- -->
```
A)  6109.90.1007

B)  7411.10.5000

C)  6117.80.8500

D)  0709.90.3500

E)  2402.10.3030