**Series 220** **Test No. 581**

**October 2001**

**United States of America**

**CUSTOMS SERVICE**

**Customs Broker Licensure 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
> (2001)]{.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)** Which **ONE** of the following statements correctly defines
"quota-class merchandise"?

**A)** Merchandise that has no quantitative restrictions for
importation.

**B)** Banned import as determined by the U.S. Department of Commerce.

> **C)** Imported merchandise subject to limitations under an absolute
> or tariff-rate quota.

**D)** Merchandise that is conditionally free or at a reduced rate.

> **E)** Merchandise for which entry into the United States is
> restricted or prohibited.

**2)** Which **ONE** of the following is **NOT** an option, which may be
used when an absolute quota is filled?

**A)** Export the merchandise.

**B)** Pay a higher rate of duty.

**C)** Enter the merchandise into a bonded warehouse.

**D)** Enter the merchandise into a foreign trade zone.

**E)** Destroy the merchandise.

**3)** In applying the rules of origin when determining which one of two
or more materials imparts the essential character of a good, various
factors may be examined depending upon the type of good involved. Which
**ONE** of the following **WOULD NOT** be a factor to consider?

**A)** Color

**B)** Bulk

**C)** Quantity

**D)** Weight

**E)** Value

**4)** Dan works for a broker and sees how hard many of his colleagues
must study in order to pass the Customs Broker Licensure Examination.
Dan is not a licensed broker, but he decides that he is having none of
that. He decides to go out on his own and to advertise his services as a
"Customs Consultant". Dan offers the same services as his former
employer, the broker, to the extent that he advises his clients on
classification and appraisement issues and prepares entry documents. He
does, however, ask his clients to file the entry documents with Customs,
explaining that this is the reason why his services are so much cheaper
than "other" brokers. Dan's former employer finds out about his
activities and notifies Customs. Customs investigates and discovers that
Dan has indeed completed 10 separate transactions for which a license
was required. What is the **MAXIMUM** penalty that Customs can assess
against Dan?

> **A)** \$ 500.00

**B)** \$ 1,000.00

**C)** \$ 10,000.00

**D)** \$ 30,000.00

**E)** \$100,000.00

5)  Lopez Food Stores imports a shipment of black cherries which is
    released under a special permit for immediate delivery. The U.S.
    Department of Agriculture then refuses to allow this shipment of
    black cherries to proceed and Customs demands redelivery. The
    importer elects to destroy the cherries under Customs supervision.

> Choose the **ONE** correct answer, which will correctly complete the
> following sentence: An entry/entry summary with deposit of estimated
> duties \_\_\_\_\_\_\_\_\_\_\_.

A)  Is not required if the cherries are destroyed within 30 days after
    release.

B)  Is not required if the cherries are destroyed within 10 working days
    after release.

C)  Is not required regardless of when destroyed, if destruction is
    under Customs supervision.

D)  Is required for the shipment in its original condition regardless of
    the disposition of the cherries.

E)  Is required for the ruined remains of the cherries even if they have
    no value.

**6)** ABC Brokerage has decided that it would like to start
transmitting data electronically. Which one of the following statements
is **NOT** a requirement when filing an Automated Broker Interface (ABI)
Letter of Intent?

A)  A description of the computer hardware, communications and entry
    processing equipment to be used.

B)  The participant's entry filer code.

C)  The name of the software vendor and contact person.

D)  The software costs.

E)  The average number of entries filed monthly.

**7)** To be eligible for filing electronic immediate delivery and
electronic entry, the filer must be which **ONE** of the following?

A)  Qualified to use the Automated Broker Interface (ABI), a feature of
    the Automated Commercial Systems (ACS).

B)  Authorized to use the Automated Clearinghouse (ACH) statement
    processing.

C)  Qualified to file electronic export entries via the Automated Export
    Systems (AES).

D)  Authorized to use the Customs Electronic Bulletin Board.

E)  Authorized to file electronic protests.

**8)** Which **ONE** of the following statements is **FALSE**?

A)  Merchandise not entitled to temporary importation under bond shall
    NOT be imported under cover of an A.T.A. carnet.

B)  Carnets shall not be accepted for importations by mail.

C)  An A.T.A carnet's period of validity can be extended a total of one
    additional year.

D)  A.T.A. carnets may be accepted for unaccompanied samples.

E)  The A.T.A. carnet is an international customs document that serves
    simultaneously as a Customs entry document and bond.

**9)** When merchandise is withdrawn from a bonded warehouse for
transportation to another port of entry, the Customs Form 7501/7512 does
**NOT** need to show which one of the following?

A)  The estimated duties, if any.

B)  The name of the consignee at the port of destination.

C)  The original entry number.

D)  The entered value of the merchandise.

E)  The date of liquidation of the entry.

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10) The Literary Company, a major book importer, imported books on
    October 28^th^, and filed a CF-3461 entry on October 30^th^. The
    entry was processed on October 31^st^ and the merchandise was
    released on Nov 1^st^.

> Choose the **ONE** correct answer, which correctly completes the
> following sentence: The entry summary must be filed within
> \_\_\_\_\_\_\_\_\_\_.

A)  10 working days from the date of importation.

B)  10 calendar days from the date of entry.

C)  10 calendar days from the date of filing the CF-3461.

D)  10 calendar days from the date of processing.

E)  10 working days from the date of release.

**11)** Which **ONE** of the following statements signifies the legal
evidence of liquidation for formal entries?

A)  When the Import Specialist makes the final computation of duty.

B)  When the courtesy notice of liquidation is mailed.

C)  When the courtesy notice of liquidation is received.

D)  When the bulletin notice of liquidation is posted or lodged in the
    Customhouse.

E)  120 days from the date of the bulletin notice of liquidation.

**12)** With the exception of powers of attorney, brokers must retain
their records for a specific period of time. Which **ONE** of the
following is the correct time frame for which such records must be
retained by a broker?

A)  7 years from date of entry.

B)  5 years from date of entry.

C)  7 years from date of importation.

D)  5 years from date of liquidation.

E)  3 years from date of importation.

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13) The failure of a broker that is licensed as a corporation,
    association, or partnership to have, during any continuous period of
    \_\_\_\_\_\_\_\_\_, at least one officer of the corporation, or
    association or at least one member of the partnership validly
    licensed, may result in the revocation by operation of law of its
    license and any permits issued to the corporation, association, or
    partnership.

Choose the **ONE** correct answer to fill in the blank found directly
above.

A)  90 days

B)  60 days

C)  120 days

D)  180 days

E)  30 days

**14)** Which **ONE** of the following **CANNOT** be protested under the
provisions of section 514, Tariff Act of 1930, as amended?

A)  The refusal to pay drawback.

B)  The classification and rate and amount of duties chargeable.

C)  The exclusion of merchandise from entry or delivery under any
    provision of the Customs laws.

D)  The appraised value of merchandise.

E)  Post importation claim of preferential treatment under NAFTA.

**15)** A protest shall contain all of the following information
**EXCEPT\_\_\_\_\_\_\_\_.**

> Choose **ONE** of the following answers, which will correctly fill in
> the blank found directly above.

A)  A copy of the bill of lading.

B)  A specific description of the merchandise affected by the decision
    as to which protest is made.

C)  The importer number of the protestant. If the protestant is
    represented by an agent having power of attorney, the importer
    number of the agent should also be shown.

D)  The name and address of the protestant, i.e., the importer of record
    or consignee, and the name and address of his agent or attorney if
    signed by one of these.

E)  The number and date of entry.

**16)** Which **ONE** of the following choices is **NOT** indicative of
a factor indicating a lack of responsible supervision and control by a
Customs broker?

A)  A high rate of entry rejections when compared with other brokers in
    the permitted district.

B)  Employing a licensed individual for a minimal number of days each
    120- or 180- day period so as to avoid violation of the statute.

C)  A high number of missing document cases when compared with other
    brokers in the permitted district.

D)  Failure to settle (including petitioning) liquidated damages claims
    in a timely manner.

E)  A high rate of employee turnaround.

**17)** Viewfinders Inc. recently imported a shipment of instant print
photographic cameras from Taiwan. The shipment consisted of 10,000
auto-focused cameras valued at \$100,000.00. You were asked to classify
the shipment. What is the correct classification of the cameras?

**A)** 9006.10.0000

B)  9006.40.4000

C)  9006.40.6000

D)  9006.40.9000

E)  9006.52.6000

**18)** Specialty Homes Inc. is a builder of custom designed homes in
Williamsburg, Virginia. Specialty Homes imports worked roofing slate
through the Port of Norfolk, Virginia. What is the proper classification
of the roofing slate imported from France?

A)  6802.29.0000

B)  6802.92.0000

C)  6803.00.1000

D)  6810.19.5000

E)  6815.99.4000

**19)** Boa, Inc. imports high fashion snakeskin men's anoraks from
China. What is the proper classification of the anoraks?

A)  4203.10.2000

B)  4203.10.4010

C)  4203.10.4030

D)  6101.90.9060

E)  6201.99.9060

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20) The term "fancy" as applied to leather, in the HTSUS,
    means\_\_\_\_\_\_\_\_\_?

Choose **ONE** of the following to correctly fill in the blank found
directly above.

A)  Incredible leather.

B)  Decorated leather.

C)  Italian Grade A leather.

D)  Composition leather.

E)  Dehaired leather.

**21)** Throughout the HTSUS, the term "base metals" means all of the
following **EXCEPT?**

A)  Zirconium

B)  Copper

C)  Tin

D)  Palladium

E)  Rhenium

**22)** Mushroom Logic, Inc., imports frozen mushrooms from Mexico. What
is the correct classification of the Mexican mushrooms entered in
Nogales?

A)  0709.51.0010

B)  0709.51.0090

C)  0710.80.2000

D)  0712.30.1000

E)  2003.10.0053

**23)** Papaya Power Juice Bar is an importer in San Diego, California.
Papaya Power imports papayas and asks you, the broker, to provide a
correct classification of the imported fresh papayas used to make papaya
juice. What correct classification do you provide to Papaya Power?

A)  0807.19.7000

B)  0807.20.0000

C)  0813.40.1000

D)  0805.90.0000

E)  2001.90.6000

**24)** When in the tariff schedule goods are classified as a set in
accordance with General Rules of Interpretation 3(b) or 3(c), the set is
to be identified by placing what prefix in front of the statistical
reporting numbers applicable to the set?

A)  "X"

B)  "S"

C)  "SET"

D)  "2"

E)  "Z"

**25)** Upon importation, which **ONE** of the following containers is
classified separately from its contents?

**A)** A plain glass bottle containing wine subject to a specific rate
of duty.

**B)** A Waterford cut crystal decanter containing Cognac.

**C)** A \$50.00 fitted leather case for a musical instrument.

D)  An elaborate retail packing, provided that the packing is more
    valuable than the

> Contents.

**E)** A musical instrument case specifically provided for under heading
4202.

**26)** Correctly classify a nonworking, plastic model steamboat without
a motor and made to scale at a ratio of 1 to 60.

**A)** 8906.00.9090

**B)** 9503.80.0025

**C)** 9503.80.0050

**D)** 9503.90.0045

> **E)** 9023.00.0000

**27)** Which **ONE** of the following is the correct classification for
dyed warp knitted fabric weighing more than 100 grams per square meter,
consisting of 85% cotton and 15% manmade fibers, and is 60 centimeters
wide?

**A)** 5208.32.30

**B)** 5408.23.19

**C)** 6002.20.30

**D)** 6002.49.00

**E)** 6002.42.00

**28)** Which **ONE** of the following is the correct classification of
a shipment of chocolate-covered wafers packaged in 12-ounce metal tins?

**A)** 1806.31.0080

**B)** 1806.90.9090

**C)** 1806.90.9019

**D)** 1905.30.0049

**E)** 1905.90.1090

**29)** Tim's Home Fashions is importing woven tablecloths from
Bangladesh. The textile fiber breakdown, by weight, is 50 percent
polyester and 50 percent cotton. Which **ONE** of the following is the
correct classification of the tablecloths?

**A)** 6302.53.0020

**B)** 6302.51.2000

**C)** 6302.51.3000

**D)** 6302.40.2020

**E)** 6302.59.0020

**30)** Joe's Polos buys fabric made in Korea, cuts the fabric into
shirt components in the United States, then exports the cut components
to Honduras for assembly. Which **ONE** is the correct classification of
the completed polo shirts?

**A)** 9802.00.5060

**B)** 9802.00.8015

**C)** 9802.00.8055

**D)** 9802.00.8066

**E)** 9802.00.9000

**31)** Edna's Bicycle Shop is not selling enough bicycles to stay in
business. Edna sees every kid in town riding a scooter and wants to get
in on the action. She gets a great deal on a shipment of children's
scooters from China. What is the correct classification for Edna's
scooters?

**A)** 8712.00.4800

**B)** 8712.00.5000

**C)** 9501.00.4000

**D)** 8716.80.5090

**E)** 9503.90.0045

**32)** Water Street Fishhouses is importing a beer from Mexico to sell
at their eating establishments in Texas. The beer is made from malt with
an alcoholic strength by volume of 0.4 percent. It is shipped in 1 liter
glass bottles. What is the correct classification of the beer?

**A)** 2202.90.9010

**B)** 2203.00.0060

**C)** 2203.00.0030

**D)** 2203.00.0090

**E)** 2202.90.9090

**33)** Which **ONE** of the following is the correct classification of
a shipment of women's golf shoes, made wholly of leather and valued at
\$18.00 a pair, that are designed for the attachment of metal spikes,
but are being imported without the spikes?

**A)** 6402.19.9060

**B)** 6402.30.9000

**C)** 6403.19.5061

**D)** 6403.19.5090

**E)** 6403.59.9045

**34)** Silk yarn is manufactured in Korea and then sent to Japan where
it is woven into fabric. The fabric is purchased by an Italian shawl
manufacturer, who sends the fabric to his factory in Malta, where the
fabric is printed, cut to shape and sewn. The shawls are then sent back
to Italy, where they are inspected and packed. The shawls are then
imported into the United States directly from Italy, and correctly
entered under heading 6214. What is the correct country of origin of the
shawls?

**A)** United States

**B)** Italy

**C)** Malta

**D)** Japan

**E)** Korea

35) Automobiles entered under classification 9813.00.75, which are
    intended solely for show purposes, admitted free under Temporary
    Importation under Bond can only remain in the United States for a
    maximum period of \_\_\_\_\_\_\_\_\_ including extension without
    violating the conditions of the bond.

Choose the correct answer to fill in the blank found directly above.

A)  1 year

B)  6 months

C)  3 years

D)  5 years

E)  3 months

**36)** Products from many countries are eligible for special tariff
treatment provided for by special trade programs. To identify such
special tariff treatment, a corresponding symbol is indicated in the
"Special" subcolumn of the HTSUS. Which **ONE** of the following is
**NOT** a correct symbol, or program, for such use?

A)  K; Agreement on Trade in Pharmaceutical Products.

B)  M; Macedonian Recovery Act of 2000.

C)  B; Automotive Products Trade Act.

D)  J; Andean trade Preference Act.

E)  E; Caribbean Basin Economic Recovery Act.

**37)** The United States military has received funding that has to be
directed toward naval operations. It has been determined that new
periscopic telescopes are needed for the submarine fleet. A foreign
supplier has manufactured the telescopes to specification and the
importation has arrived. What is the proper classification of the
periscopic telescopes?

A)  9013.90

B)  9015.10

C)  9005.90

D)  9005.80

E)  9013.10

**38)** What is the correct classification of reinforced vulcanized
rubber brake hoses with fittings for use in station wagons?

A)  3917.40.0010

B)  3917.39.0010

C)  4009.50.0020

D)  8708.39.5050

E)  8708.99.8005

**39)** Which **ONE** of the following is **NOT** required in order for
an item to qualify for statutory provision 9802.00.80 HTSUS for articles
assembled abroad?

A)  The components must be of United States origin, excluding textile
    articles.

B)  The assembly process is done in the United States.

C)  The components must have been exported from the United States in
    condition ready for assembly.

D)  The components have not lost their physical identity.

E)  The components are not advanced in value or improved in condition
    abroad except by being assembled.

**40)** When using statutory provision 9802.00.8066 HTSUS, the General
Rate of Duty will be which **ONE** of the following?

A)  Unconditionally Free.

B)  The duty rate assessed on the full value of the imported article
    derived from CH 1-97.

C)  The duty rate assessed on the full value of the imported article,
    less the cost of the United States components at the time of last
    purchase.

D)  10 percent of the full value of the imported article.

E)  An average of the duty rates for all components used in the assembly
    process.

**41)** Seven Chinese components classified under HTSUS 8481.90 are
assembled in Germany to make a finished product classified under HTSUS
8481.10. The finished product is exported to Mexico where it is used for
three years. No further processing is done in Mexico. After its use in
Mexico, the finished product is exported to the United States. What is
the country of origin?

A)  Germany

B)  China

C)  Mexico

D)  United States

E)  Cannot be determined because we do not know which component imparts
    the essential character of the finished product.

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42) TANO Corp. in the United States exports alternators to Canada to be
    repaired. Upon importation back into the U.S. TANO Corp. decides to
    claim 9802.00.50. US Customs requests proof of exportation for the
    alternators from the United States. Which **ONE** of the following
    is **NOT** an acceptable proof of export?

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A)  Foreign Customs Invoice.

B)  Bill of Lading.

C)  Certificate of origin.

D)  Foreign landing certificate.

E)  Foreign Customs Entry.

# 

**43)** Peteco would like to set up a shelter operation in Malaysia for
the assembly of newspaper vending machines. Pete, the owner and CEO of
Peteco, meets with his United States broker and would like to take
advantage of the 9802.00.80 assembly provision upon importation into the
United States. All components used will be of United States origin and
are exported to Malaysia ready for assembly. Which **ONE** of the
following operations performed in Malaysia will preclude the application
of such exemption for the newspaper vending machines when re-imported
into the United States?

A)  Application of preservative paint or coating.

B)  Painting primarily intended to enhance the appearance.

C)  Trimming, filing, or cutting off of small amounts of excess
    materials.

D)  Cleaning.

E)  Testing.

**44)** A Gallinae is described as a class of live game animals and
birds admitted free of duty for stocking purposes under the provisions
of subheading 9817.00.70. What type of live game is a Gallinae commonly
known as?

A)  Deer

B)  Elk

C)  Turkeys, grouse, pheasants, partridges and quail

D)  Ducks and geese

E)  Rabbit

**45)** If a complete or finished article to be entered is unassembled
or disassembled, how should it be classified using the HTSUS?

A)  Classify the article under the HTS number under which the finished
    or complete article would be classified.

B)  Classify each part separately under its own HTS number.

C)  Classify all the parts under the HTS number for the part with the
    greatest value.

D)  Classify all the parts under the HTS number for the part which gives
    the article its essential character.

E)  Classify the article in Heading 9802 as articles assembled abroad.

**46)** In which **ONE** of the following situations may Customs issue a
ruling letter?

A)  Hypothetical importation.

B)  Oral Request.

C)  Completed transaction.

D)  Pending case before the Court of International Trade.

E)  Prospective transaction.

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47) Intentional removal, defacement, destruction, or alteration of a
    marking of the country of origin in order to conceal this
    information may result in criminal penalties of up
    to\_\_\_\_\_\_\_\_\_\_\_.

Choose the **ONE** answer that correctly fills in the blank found
directly above.

A)  \$ 10,000.00 and 5 years in jail.

B)  \$100,000.00 and 20 years in jail.

C)  \$ 5,000.00 and 10 years in jail.

D)  \$ 5,000.00 and 1 year in jail

E)  10 times the value of the shipment and 6 months in jail.

**48)** Which **ONE** of the following imported articles is **NOT** a
J-list exception to the country of origin marking requirements?

A)  Playing Cards from Canada.

B)  Livestock from Mexico.

C)  Firewood from Canada.

D)  Christmas trees from Canada.

E)  Barbed wire from Mexico.

## 

**49)** In calculating Total Cost for NAFTA purposes, which **ONE** of
the following is **NOT** included?

A)  Value of direct labor.

B)  Value of materials.

C)  Value of direct overhead.

D)  Profit earned by the producer.

E)  Period costs.

**50)** A Post NAFTA Claim 520(d) may be denied for all of the following
reasons **EXCEPT?**

A)  Failure to file timely.

B)  Failure to submit the claim on a CF19.

C)  Failure to provide a certificate of origin pertaining to the good.

D)  Failure for the imported goods to qualify as an originating good
    following initiation of an origin verification by the Port Director.

E)  Failure to submit three written statements indicating:

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1.  Whether or not the importer of the good provided a copy of the entry
    summary or equivalent documentation to any other person.

2.  Whether or not the importer of the good is aware of any claim for
    refund, waiver or reduction of duties relating to the good within
    the meaning of Article 303 of the NAFTA.

3.  Whether or not any person has filed a protest or a petition or
    request for reliquidation relating to the good under any provision
    of law.

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51) For NAFTA purposes, in order for a Certificate of Origin to be
    valid, it must be signed by which **ONE** of the following?

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A)  Importer.

B)  Customs Broker having a valid power of attorney from the importer.

C)  Exporter or exporter's authorized agent having knowledge of the
    facts.

D)  Port Director of the port where the importation will take place.

E)  The Certificate of Origin does not have to be signed by anyone to be
    valid.

**52)** Which **ONE** of the following is **NOT** included when
determining computed value?

A)  Cost of materials.

B)  Overhead/General expense.

C)  Labor/Fabrication expense.

D)  Customs Duties paid.

E)  Profit.

# 

# 

**53)** The application to record a trademark with the U.S. Customs
Service should be in writing and must include all of the following
**EXCEPT?**

A)  The name, complete business address, and citizenship of the
    trademark owner or owners.

B)  The U.S. Ports where the goods bearing the recorded trademark may be
    imported.

C)  The places of manufacture of goods bearing the recorded trademark.

D)  The name and principal business address of each foreign person or
    business entity authorized or licensed to use the trademark and a
    statement as to the use authorized.

E)  The identity of any parent or subsidiary company or other foreign
    company under common ownership or control which uses the trademark
    abroad.

# 

54) Who Knows & Co. owns a trademark that is registered with the U.S.
    Patent & Trademark Office and recorded with the U.S. Customs
    Service. Copycat Trades has attempted to import jeans bearing marks
    that are counterfeit of Who Knows & Co\'s trademark for the fourth
    time in three years. In addition to any other penalty or remedy as
    authorized by law, the U.S. Customs Service may impose a civil fine
    on Copycat Trades of not more than \_\_\_\_\_\_\_ the value of the
    merchandise as if it had been genuine, based on the manufacturer\'s
    suggested retail price of the merchandise at the time of seizure.

> Which **ONE** of the following choices correctly fills in the blank
> found directly above?

A)  Two times

B)  One times

C)  Three times

D)  Five times

E)  Ten times

**55)** Which **ONE** of the following is **NOT** considered an assist
when supplied free of charge by the importer to the manufacturer for the
production of the merchandise being imported?

A)  Materials, components, or parts incorporated into the imported
    merchandise.

B)  Tools, dies, and molds used in the production of the imported
    merchandise.

C)  Engineering, development, artwork, design work, and plans undertaken
    by an employee of the importer domiciled in the United States and
    incidental to other engineering, development, artwork, design work,
    and plans undertaken within the United States.

D)  Merchandise consumed in the production of the imported merchandise.

E)  Heavy-duty machinery used in the production of the imported
    merchandise.

# 

56) For substitution unused merchandise drawback, the claimant must have
    had possession of the exported or destroyed merchandise at some time
    during the \_\_\_\_\_\_ year period following the date of
    importation of the imported designated merchandise; and the
    merchandise to be exported or destroyed to qualify for drawback must
    be exported, or destroyed under Customs supervision, before the
    close of the \_\_\_\_\_\_ year period beginning on the date of
    importation of the imported designated merchandise.

Select the **ONE** answer that correctly fills in the blanks found
directly above.

A)  3; 5

B)  3; 3

C)  2; 5

D)  2; 3

E)  1; 5

**57)** You prepare a drawback claim for your client. Assuming the claim
has merit and the documentation is correctly prepared and filed,
drawback of Customs duty will be allowed if the articles are shipped to
which **ONE** of the following places?

A)  U.S. Virgin Islands

B)  Puerto Rico

C)  Guam

D)  Guantanamo Bay Naval Station

E)  American Samoa

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58) Class \_\_\_\_ warehouses are used for selling, for use outside the
    Customs territory, conditionally duty-free merchandise owned or sold
    by the proprietor and delivered from the warehouse to an airport or
    other exit point for exportation by, or on behalf of, individuals
    departing from the Customs territory for destinations other than
    foreign trade zones.

Choose the **ONE** answer that correctly fills in the blank found
directly above.

A)  1

B)  2

C)  3

D)  6

E)  9

**59)** Records pertaining to articles that are admitted free of duty
and tax pursuant to 19 U.S.C. 1321(a)(2) and 19 CFR 10.151 through
10.153 shall be kept for \_\_\_\_\_\_\_ from the date of entry.

Choose the **ONE** answer that correctly fills in the blank found
directly above.

A)  60 calendar days

B)  5 years

C)  2 years

D)  1 year

E)  90 calendar days

**60)** Arrow Brokers receives a written demand from Customs for the
production of certain entry records. The demand is not being made in
connection with a determination regarding the admissibility or release
of merchandise. Arrow Brokers must produce the entry records within
\_\_\_\_\_ calendar days of receipt of the demand.

Choose the **ONE** answer that correctly fills in the blank found
directly above.

A)  30

B)  10

C)  5

D)  60

E)  90

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61) An importer who fails to comply with a lawful demand for entry
    records can avoid penalties if s/he can show that the records are
    unavailable for any of the following reasons
    **EXCEPT\_\_\_\_\_\_\_.**

> Choose **ONE** of the following answers, which will correctly fill in
> the blank found directly above:

A)  That the loss of the demanded record was the result of an act of God
    or other natural casualty or disaster beyond the fault of such
    person or an agent of the person.

B)  That he has been certified as a participant in the Recordkeeping
    Compliance Program, that he is generally in compliance with the
    appropriate procedures and requirements of that program, and that
    the violation in question is his first violation and was a
    non-willful violation.

C)  He thought that his Customs broker was responsible for maintaining
    his records.

D)  That the record demanded was presented to and retained by Customs at
    the time of entry or submitted in response to an earlier demand.

E)  On the basis of other evidence satisfactory to Customs, that the
    demand was substantially complied with. On the basis of other
    evidence satisfactory to Customs, that the demand was substantially
    complied with.

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62) Waste recovered from any manipulation or manufacture of privileged
    foreign merchandise in a Foreign Trade Zone\_\_\_\_\_\_\_\_\_\_.

> Which **ONE** of the following choices correctly completes the
> sentence found directly above:

A)  Is, by extension, also considered privileged foreign merchandise.

B)  Is considered non-privileged foreign merchandise.

C)  Requires a separate application for Status Designation on CF 214.

D)  Cannot enter the Customs territory of the United States.

E)  Has zone-restricted status.

**63)** Which **ONE** of the following represents the correct duration
of powers of attorney issued by a partnership?

A)  A period not to exceed 2 year from the date of execution.

B)  A period not to exceed 1 years from the date of execution.

C)  A period not to exceed 3 years from the date of execution.

D)  A period not to exceed 5 years from the date of execution.

E)  Partnership powers of attorney are valid until revoked.

**64)** Unless by special authority of the Commissioner of Customs,
merchandise in bulk in a bonded warehouse shall not be withdrawn in
quantities less than \_\_\_\_\_\_\_\_\_\_\_\_\_\_.

> Which **ONE** of the following choices most accurately completes the
> sentence found directly above?

A)  30 kg in weight.

B)  5 tons in weight, or the entire quantity imported, whichever is
    smaller.

C)  1 ton in weight or the entire quantity imported, whichever is
    larger.

D)  5 tons in weight, or the entire quantity imported, whichever is
    larger.

E)  1 ton in weight or the entire quantity imported, whichever is
    smaller.

> **65)** Subject to exceptions relating to surcharges and to
> aggregation, the *ad valorem* merchandise processing fee assessed on
> merchandise that is formally entered or released shall not exceed
> \_\_\_\_\_ and shall not be less than \_\_\_\_\_.
>
> Choose the **ONE** answer that correctly fills in the blanks found
> directly above.

A)  \$ 9.00; \$ 2.00.

B)  \$ 425.00; \$50.00.

C)  \$ 425.00; \$25.00.

D)  \$ 485.00; 25.

E)  \$1,000.00; 10.

**66)** What is the current fee, which an applicant must pay when
submitting an Application for Customs Broker License (CF 3124)?

A)  \$ 25.00.

B)  \$100.00.

C)  \$200.00.

D)  \$300.00.

E)  \$400.00.

**67)** A+ Brokers, Inc., prides itself on the high quality of service
it provides to its clients. It offers regular training to its employees
in a continuing effort to remain one of the best in the business. In one
of its training sessions, the trainer enumerates the actions that will
place its broker license in jeopardy. Which **ONE** of the following is
**NOT** an action that places the broker license in jeopardy?

> **A)** The broker knowingly employed a person with a record of felony
> embezzlement without first obtaining written permission from Customs
> for the employment.

B)  The broker has been without a licensed permit qualifier in one of
    the broker districts in which it maintains an office for 125 days.

C)  The broker made a false statement with respect to a material fact in
    its license application.

D)  The broker counseled a client to conceal assist costs, with the
    understanding that the client would share the duties saved with the
    broker.

E)  The broker has been convicted of a misdemeanor embezzlement charge
    six years after receiving its license.

**68)** Many types of entries and withdrawals may legally be made for
merchandise to be transported in bond. Which **ONE** of the following is
**NOT** one of these types of withdrawals or entries?

A)  Entry for exportation.

B)  Entry for immediate transportation without appraisement.

C)  Warehouse or rewarehouse withdrawal for exportation or for
    transportation and exportation.

D)  Entry for temporary importation under bond.

E)  Entry for transportation and exportation.

**69)** Any protestant, whose protest has been denied, in whole or in
part, may contest the denial by filing a civil action. Which **ONE** of
the following is **NOT** a correct statement?

A)  File a civil action within 90 days after the date of mailing of
    notice of denial, in whole or in part, of a protest.

B)  File a civil action within 180 days after the date of mailing of
    notice of denial, in whole or in part, of a protest.

C)  File a civil action within 180 days after the date a protest, for
    which accelerated disposition was requested, is deemed to have been
    denied in accordance with 174.22(d).

D)  File a civil action within 180 days after the date that a protest is
    deemed denied in accordance with 174.21(b) or 151.16(g).

E)  File a civil action in the United States Court of International
    Trade in accordance with 28 U.S.C. 2632.

**70)** Which **ONE** of the following countries is **NOT** listed in
the Customs Regulations, as one of the currency conversion countries
certified for the quarterly rate of exchange?

A)  Canada

B)  Mexico

C)  Syria

D)  Austria

E)  Sweden

**71)** Which **ONE** of the following **CANNOT** be accepted on a bond
rider?

A)  Name change of principal.

B)  Address change of principal.

C)  Addition of a witness.

D)  Addition of a trade name.

E)  Deletion of a trade name.

**72)** What type of bond contains a condition whereby the bond
principal agrees to keep safe any merchandise placed in its custody
including, when approved by Customs, repacking and transferring such
merchandise when necessary for its safety or preservation?

A)  Basic Custodial Bond.

B)  Basic Importation and Entry Bond.

C)  International Carrier Bond.

D)  Repayment of Erroneous Drawback Payment Bond.

E)  Commercial gauger and Commercial Laboratory Bond.

**73)** A demand for the return of merchandise to Customs custody shall
not be made in which **ONE** of the following situations?

A)  Prior to liquidation of the entry.

B)  Prior to collection processing.

C)  After the filing of the entry summary.

D)  After liquidation of the entry.

E)  After statement processing.

**74)** Line Release (currently known as BRASS) is an automated system
designed to release and track repetitive, high volume shipments. After
an application for Line Release has been approved for final processing,
the entry filer shall preprint invoices or print labels with the C-4
code in bar code and alpha-numeric format. Bar codes will be printed
according to the specifications stated in which **ONE** of the following
publications?

A)  Federal Register.

B)  Customs Bulletin.

C)  Customs Publications 561.

D)  United States Code.

E)  Customs Regulations.

**75)** After an applicant passes the Customs Broker Licensure
Examination, within what time frame must the applicant submit an
Application for Customs Broker License if the applicant desires a
license?

**A)** 2 years

**B)** 5 years

C)  30 days

D)  1 year

E)  3 years

**76)** Which **ONE** of the following situations will preclude the use
of transaction value?

A)  The United States buyer furnishes the foreign manufacturer with
    \$5000.00 worth of material to be used in the production of the
    imported merchandise.

B)  The United States importer is a wholly-owned subsidiary of the
    foreign manufacturer and purchases merchandise at the same price as
    non-related buyers.

C)  The United States importer forwards a percentage of the resale price
    back to the foreign manufacturer.

D)  The merchandise is sold to the United States importer from an
    unrelated foreign shipper, at a price that is dependent on the
    resale of the product and on the purchase of additional units of
    related merchandise.

E)  The United States importer pays an additional fee for special export
    packing.

**77)** Which **ONE** of the following facts about test values and
related parties is true?

A)  If the related party value does not closely approximate the test
    value, then the test value will be used for transaction value of the
    instant shipment.

B)  Test values must be previously established in the country of
    production.

C)  A test value may only be used for comparison purposes.

D)  Even if an importer can establish that the related price closely
    approximates the test value, he must also furnish evidence that the
    related price is sufficient to recover all costs, plus a profit
    equal to a firm's overall profit over a representative period of
    time.

E)  No allowances in pricing may be made in comparing test values.

**78)** CIT Electronics Corporation is a small, newly formed electronics
company located in Kitchener, Ontario. The owners are young electronic
game designers and this company is their first business venture. They
plan to concentrate in the design and production phase of the company
and hire a sales consultant, Tom Black, to market and sell their
products to retail establishments. The first game is Corpo Man, and
their consultant is very successful in his efforts to market and sell
the product. The game is priced at \$49.95. You are reviewing the
invoices to Tina's Electronic Treasures in Dunkirk, New York, to
determine the correct entered value. In addition to the price of
\$49.95, there is a separate invoice for a 10 percent commission payable
to Tom Black. Both of these invoices show Tina's as the buyer. Which
**ONE** of the following statements pertaining to the appraisement of
this importation is correct?

A)  Appraisement should be at \$49.95 each. The 10 percent is a separate
    payment and cannot be added to the price paid or payable.

B)  Appraisement should be at \$49.95 each. The 10 percent represents a
    buying commission that cannot be added to the invoice price.

C)  Appraisement should be at \$49.95 each, less 10 percent.

D)  Appraisement should be at \$49.95 each, plus 10 percent selling
    commission.

E)  Appraisement is not possible because this is a new product.

**79)** Which **ONE** of the following may **NOT** be included in a
calculation of Transaction Value?

A)  Selling commissions relating to the importation.

B)  Assists related to the imported merchandise.

C)  Labor costs of packing that are incurred by the buyer with respect
    to the imported merchandise.

D)  Royalties that the buyer is required to pay as a condition of the
    sale.

E)  Profit costs that are usual in the industry.

**80)** Which **ONE** of the following choices describes an assist?

A)  Yankee Superheroes of New York is importing plastic action figures
    from a Taiwanese toy maker. The importer is very concerned that the
    figures look as accurate as possible, so it has the molds made in
    its own facility, and then sells them at full cost to the Taiwanese
    manufacturer.

B)  Buffalo Mugs, a United States importer, designs a new non-tip coffee
    mug, and contracts with a Canadian firm, MugMakers in Thorold,
    Ontario for the production. Buffalo Mugs supplies MugMakers with
    detailed drawings for the production.

C)  A major United States luggage importer and retailer arranges for the
    manufacture of small rolling duffel bags with a Mexican
    manufacturer. They specify in the contract that the Mexican firm
    must source the wheel mechanism from an unrelated Canadian
    manufacturer.

D)  GrindCo, a United States machinery manufacturer, arranges to
    purchase grinding wheel from an English producer, Abrasives Limited.
    Abrasives runs into a production quality problem with the glue for
    the abrasives. Grindco has had this problem previously, and has
    identified the best glue for their needs. They purchase it from an
    unrelated supplier in England, and arrange to have it delivered
    immediately, at no cost to Abrasives Limited.

E)  A beanbag chair manufacturer in Monterey, Mexico has contracted to
    produce toddler chairs for a United States importer, Little Ones.
    Little Ones furnished detailed drawings to the Monterey company;
    however, during the first production run, a minor glitch in the
    design has been uncovered. Little Ones dispatches one of its
    Laredo-based designers, who was involved in the original design to
    go to Monterey for an afternoon to help explain the original design.

> **STOP.**
>
> **THIS IS THE END OF THE TEST.**
>
> **You may use the remaining time to go back and check your answers.**