**Series 460** **Test No. 581**

**October 2007**

**U.S. CUSTOMS AND BORDER PROTECTION**

**Customs Broker License Examination**

**DIRECTIONS - READ CAREFULLY**

This examination consists of 80 questions. The minimum passing score is
75%. For each question, choose the letter representing your answer
(**A**, **B**, **C**, **D**, or **E**) and completely darken the
corresponding space on your answer sheet.

You are responsible for having the following references:

-   **Harmonized Tariff Schedule of the United States (2007)** USITC
    Publication 3840

-   

-   **Title 19, Code of Federal Regulations** Revised as of April 1,
    2007 (**Parts 1-199**)

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-   **Customs and Trade Automated Interface Requirements** (CATAIR)

+-------------------------------+--------------------------------------+
| -   Introduction              | -   Appendix E -- Valid Entry        |
|                               |     Numbers                          |
+-------------------------------+--------------------------------------+
| -   Getting Started           | -   Appendix G -- Common Errors      |
+-------------------------------+--------------------------------------+
| -   Requirements              | -   Appendix H -- Census Warning     |
|                               |     Messages                         |
+-------------------------------+--------------------------------------+
| -   Appendix B -- Valid Codes | -   Appendix L -- Drawback Errors    |
+-------------------------------+--------------------------------------+
| -   Appendix D -- Metric      | -   Glossary of Terms                |
|     Conversion                |                                      |
+-------------------------------+--------------------------------------+

-   **Instructions for Preparation of CBP Form 7501 (8-30-2005)**

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-   **Remote Location Filing**

-   

-   **Submission Changes for Supplemental Information Letters and Post
    Entry Amendments**

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-   **Directives**

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-   3510-004, Monetary Guidelines for Setting Bond Amounts

-   Amendment to 3510-004 for Certain Merchandise Subject to
    Antidumping/Countervailing Duty Cases

-   3550-055, Instructions for Deriving Manufacturer/Shipper
    Identification Code

-   3550-067, Entry Summary Acceptance and Rejection Policy

-   3550-079A, Ultimate Consignee at time of Entry or Release

-   3560-001A, Census Interface-Processing Procedures

-   5610-002A**,** Standard Guidelines for the Input of Names and
    Addresses Into Automated Commercial System (ACS) Files

There is no penalty for guessing; therefore, you should attempt to
answer every question. **Each question is designed to have a single best
answer.**

This examination lasts four (4) hours. When you finish, please give your
answer sheet to the test administrator. **You may take this booklet with
you**.

**DO [NOT]{.underline} TURN THIS PAGE UNTIL TOLD TO DO SO BY THE
EXAMINER.**

THIS PAGE IS INTENTIONALLY BLANK.

# [Customs Broker License Examination]{.underline}

# 

# Section 1 - ENTRY Questions 1 - 14

#  

# 

# Section 2 - CLASSIFICATION Questions 15 - 33

# 

# 

# Section 3 - BROKER COMPLIANCE Questions 34 - 42

# 

# 

# Section 4 - TRADE AGREEMENTS Questions 43 - 51

# 

# 

# Section 5 - DRAWBACK Questions 52 - 56

# 

# 

# Section 6 - VALUE Questions 57 - 61

# 

# 

# Section 7 - WAREHOUSE Questions 62 - 66

# 

# 

# Section 8 - GENERAL Questions 67 - 80

# [Section 1 ENTRY]{.underline}

1.  When are A.T.A. Carnets allowed for mail shipments?

    A.  When the value of the goods is over \$1000

    B.  When the value of the goods is under \$1000

    C.  When the merchandise is for use at a trade show only

    D.  Never

    E.  When the merchandise is for sample purposes only

2.  Which of the following is a special indicator for the Dominican
    Republic-Central America-United States Free Trade Agreement?

    A.  A, A\*, or A+

    B.  P or P+

    C.  C

    D.  D

    E.  P\*

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3.  An informal entry may **NOT** be made for \_\_\_\_\_.

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A.  a kitchen table and chairs owned by a U.S. college student in Canada

B.  footwear lacings of cotton, valued at U.S. \$750

C.  castile soap in the shape of swans, valued at U.S. \$1200

D.  children's picture books imported by a library

E.  handles for night tables, of plastic, valued at U.S. \$235

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4.  The entry type for merchandise valued at \$10,000, classified as
    American Goods Returned, and imported for repair or alteration prior
    to re-exportation is \_\_\_\_\_.

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A.  02

B.  12

C.  03

D.  08

E.  11

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5.  If CBP finds an error in a type "01" ABI entry summary 45 days after
    it was submitted timely, the entry summary will be \_\_\_\_\_.

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A.  rejected

B.  late

C.  accepted

D.  invalid

E.  liquidated

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6.  A broker transmits an entry via ABI on behalf of an importer under a
    single entry bond and immediately receives a paperless release. The
    broker forgets to flag the entry for statement payment, and the
    duties, taxes and fees are paid 30 days later. CBP will then issue
    \_\_\_\_\_.

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A.  a penalty to the broker for breach of the importer's bond

B.  a penalty to the importer of record for late file

C.  a penalty to both the broker and importer for late file

D.  liquidated damages and a penalty to the importer for late file

E.  liquidated damages to the importer of record for late file

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7.  What are the total duties and fees for an air shipment of gold
    necklaces from China valued at \$15,700 and classified under
    7113.19.2900?

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A.  \$ 864

B.  \$ 896

C.  \$ 916

D.  \$ 119

E.  \$ 139

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8.  What is the Merchandise Processing Fee for an importation from Italy
    of 10 Italian-made cars each valued at \$29,500?

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A.  \$ 369

B.  \$ 62

C.  \$ 620

D.  \$ 485

E.  \$ 25

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9.  What are the total duties and fees for a shipment of 500 cartons
    (984 gross) of lead encased pencils for writing imported by vessel?
    The country of origin is China. The shipment is valued at \$15,624.
    The applicable anti-dumping duty rate is 44.66%.

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A.  \$ 7,716

B.  \$ 7,807

C.  \$ 7,030

D.  \$ 862

E.  \$ 7,840

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10. For an article to qualify for a trade fair entry, the trade fair
    must be designated by the \_\_\_\_\_.

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A.  Port Director

B.  Secretary of Commerce

C.  Assistant Commissioner

D.  Court of International Trade

E.  CBP Officer

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11. The **MAXIMUM** amount of time merchandise formally entered
    temporarily under bond under HTS \# 9813.00.75 may remain in the
    Customs territory of the U.S. is \_\_\_\_ from the date of
    importation into the U.S.

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A.  four years

B.  three years

C.  two years

D.  six months

E.  three years plus one 6-month extension

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12. What is the **DATE OF EXPORTATION** for the following oil shipment
    to the U.S.?

> June 4 - the oil is produced in Algeria
>
> June 6 - the oil is shipped via pipeline to a storage facility in
> Morocco
>
> June 20 - the oil's owners in France find a buyer located in Houston,
>
> Texas
>
> June 28 - the oil is loaded onto a U.S.-bound tanker in Casablanca
>
> June 30 - the tanker sets sail for the U.S.

A.  June 4

B.  June 6

C.  June 20

D.  June 28

E.  June 30

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13. Imported merchandise must be entered within \_\_\_\_\_ days after
    landing from the vessel, aircraft or vehicle.

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A.  15 working

B.  15 calendar

C.  20 calendar

D.  20 working

E.  30 calendar

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14. Mailed packages containing merchandise subject to an absolute quota
    that has filled shall be returned to sender and notified by CBP Form
    \_\_\_\_\_.

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A.  3509

B.  3311

C.  3419

D.  5251

E.  7512

**[Section 2 CLASSIFICATION]{.underline}**

15. What is the **CLASSIFICATION** for a mahogany case containing a set
    of six (6) make-up brushes of varying sizes? Each brush has a
    mahogany handle and is manufactured with muskrat bristles. The
    brushes were hand-made in China and packaged for sale in the
    specially fitted mahogany case that is suitable for long-term use.

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A.  4202.19.0000

B.  4202.99.2000

C.  4420.90.2000

D.  9603.30.6000

E.  9616.20.0000

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16. What is the **CLASSIFICATION** for an anorak made of leather?

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A.  4203.10.4010

B.  4203.10.4085

C.  4203.40.6000

D.  6101.90.9060

E.  6201.19.9060

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17. What is the **CLASSIFICATION** for an original abstract jade
    sculpture made by a recognized artist in 1892?

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A.  7103.99.5000

B.  7116.20.4000

C.  7116.20.5000

D.  9703.00.0000

E.  9706.00.0000

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18. What is the **CLASSIFICATION** for an automatic sewing machine used
    to stitch pages to book covers? The value of the sewing machine is
    \$400. The sewing machine, of German origin, is imported into the
    U.S. by Company A in 2001, exported to Germany in 2002 for repair,
    and sold to Company B while in Germany. It is now being re-imported
    into the U.S. by Company B for use in a bookbinding factory.

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A.  8440.10.0000

B.  8452.29.9000

C.  9801.00.1055

D.  9801.00.2000

E.  9813.00.0520

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19. What is the **CLASSIFICATION** for decorative foliage made with
    polyester woven fabric and assembled to flexible wire stems by
    gluing?

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A.  6702.10.2000

B.  9902.25.65

C.  9902.25.65

> 6702.90.3500

D.  6702.90.6500

E.  6702.90.3500

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20. What is the **CLASSIFICATION** for a copper wind chime?

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A.  7419.99.5050

B.  8306.10.0000

C.  8306.29.0000

D.  9206.00.6000

E.  9206.00.8000

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21. What is the **CLASSIFICATION** for men's synthetic 100% nylon woven
    pants (not knitted or coated with plastics or rubber) typically used
    for cold weather activity such as skiing, snowboarding, and
    snowshoeing? The pants feature cold weather insulation, water
    resistance, scuff guards, tightening at the ankle, and reinforcement
    in the knees.

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A.  6203.49.2015

B.  6203.43.3510

C.  6203.43.3590

D.  6203.43.4010

E.  6203.49.1005

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22. What is the **CLASSIFICATION** for knitted women's sweaters made of
    75% cotton, 20% polyester, and 5% mink and having a stitch count of
    12 stitches per 2 centimeters with sewn-on collars and cuffs made of
    mink fur?

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A.  6110.12.2030

B.  6110.20.1020

C.  6110.20.2020

D.  6110.20.2077

E.  6110.20.2079

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23. What is the **CLASSIFICATION** for a woven, 86% cotton, 14%
    polyester handkerchief that is hemmed, fringed, and measures 61cm X
    59cm?

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A.  6117.10.6010

B.  6117.80.9510

C.  6213.20.1000

D.  6214.90.0010

E.  6217.10.9510

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24. What is the **CLASSIFICATION** for a knit, 50% cotton, 50% polyester
    unisex T-shirt for adults?

    A.  6109.10.0027

    B.  6109.10.0040

    C.  6109.90.1007

    D.  6109.90.1050

    E.  6109.90.8030

25. What is the **CLASSIFICATION** for a stainless steel turkey fryer
    that uses propane fuel?

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A.  7321.11.1060

B.  7321.19.0080

C.  7321.81.1000

D.  7323.92.0040

E.  7326.90.8587

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25. What is the **CLASSIFICATION** for a set of four (4) glass dessert
    dishes valued at \$5.65 per set, not specially tempered and not cut
    or engraved?

    A.  7013.37.2000

    B.  7013.49.1000

    C.  7013.49.2000

    D.  7013.49.6000

    E.  7013.99.9000

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27. What is the **CLASSIFICATION** for leather golf bags?

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A.  4202.31.6000

B.  4202.91.0010

C.  4202.92.4500

D.  9506.39.0080

E.  9506.99.6080

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28. What is the **CLASSIFICATION** for a retail package of medicated
    shampoo consisting of selenium disulphide suspended in soap?

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A.  3004.90.9190

B.  3305.10.0000

C.  3401.11.5000

D.  3401.19.0000

E.  3401.20.0000

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29. What is the **CLASSIFICATION** for a fabricated one piece stainless
    steel sink unit? The unit is composed of a molded stainless steel
    sink welded to stainless steel countertops fabricated of steel
    sheet.

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A.  6910.10.0030

B.  7324.10.0000

C.  7324.90.0000

D.  7326.90.8587

E.  9403.20.0020

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30. What is the **Classification** for a household steel wine rack that
    holds 15 bottles of wine? It measures 33" high and is designed to be
    placed on the floor.

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A.  7323.94.0080

B.  7323.99.9060

C.  7615.19.9000

D.  9403.20.0015

E.  9403.20.0030

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31. What is the duty rate for NAFTA-originating fresh cucumbers from
    Mexico released under a special permit for immediate delivery on
    February 23, 2007 if the entry summary is filed in proper form on
    March 8, 2007?

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A.  Free

B.  4.2 cents/kilogram

C.  5.6 cents/kilogram

D.  0.8 cents/kilogram

E.  6.6 cents/kilogram

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32. What is the **CLASSIFICATION** for purebred breeding swine?

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A.  0102.10.0010

B.  0102.10.0030

C.  0103.10.0000

D.  0103.92.0020

E.  0103.92.0091

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33. What is the **CLASSIFICATION** for a unisex polyester woven
    windbreaker jacket that has been coated with wax on the outer shell?

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A.  6102.30.2010

B.  6201.93.3000

C.  6201.93.3511

D.  6202.93.4500

E.  6202.93.5011

## [Section 3 BROKER COMPLIANCE]{.underline}

34. "Customs business" includes \_\_\_\_.

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A.  classification and valuation

B.  marine transactions

C.  in-bond movement or transportation of merchandise

D.  Foreign Trade Zone admissions

E.  electronic transmission of data received for transmission to CBP

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35. After an entry has been filed and the duties paid on a shipment, a
    notice of action is received from the Import Specialist stating that
    the shipment is excluded from entry due to insufficient production
    records to prove country of origin. If the importer has these
    records, the broker's best advice to the importer is to \_\_\_\_\_.

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A.  file a petition with the office of Fines, Penalties, and Forfeitures

B.  file a Post Entry Amendment (SIL/PEA) because the entry has not
    liquidated

C.  immediately file a protest against CBP's decision to exclude the
    merchandise

D.  take the production records to the Problem Resolution Desk for
    clearance

E.  advise that it is too late to reconcile anything with CBP and
    suggest he/she make arrangements to export the merchandise

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36. Upon termination, an individual broker who was the license qualifier
    for an association or corporation must provide \_\_\_\_\_.

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A.  written notice to the Assistant Commissioner within 30 days of
    his/her termination

B.  notice immediately via any means of communication to the
    Commissioner and send a copy to each Port Director where a permit
    has been granted

C.  written notice immediately to the Assistant Commissioner and send a
    copy to each Port Director where a permit has been granted

D.  written notice within 10 days to the Assistant Commissioner and send
    a copy to the Port Director only at the Port of Entry for the
    corporate headquarters

E.  written notice immediately to the Assistant Commissioner only

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37. A licensed individual not currently working for a broker or actively
    engaged in Customs business\_\_\_\_\_.

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A.  must file a written status report and submit a \$100 fee to CBP
    Headquarters each year

B.  must file a written status report and submit a \$125 fee to CBP
    Headquarters every third year from 1985

C.  does not have to file a written status report or submit a fee since
    he is not actively engaged in "Customs business"

D.  must file a written status report and submit a \$100 fee to the CBP
    port through which he received his license, every third year from
    1985

E.  must file a written status report and submit a \$200 fee to the CBP
    port through which he received his license every third year from
    1985

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38. Preparing a \_\_\_\_ for others does **NOT** require a licensed
    Customs broker.

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A.  Temporary Importation under Bond

B.  Transportation in Bond

C.  Permanent Exhibition Bond

D.  Trade Fair Entry

E.  Foreign Trade Zone Entry

**Using the below-identified original Power of Attorney (POA) received
by Mr. Greg Hines (the Customs broker), answer questions 39 through
42.**

# 

**KNOW ALL MEN BY THESE PRESENTS**: That **QUICK IMPORTS, INC.,** a
corporation doing business under the laws of the country of **CANADA**,
and having an office and place of business at **123 MAIN STREET,
TORONTO, ONTARIO** with an **Importer IRS# 007140-13600** hereby
constitutes and appoints **GREG HINES dba E-CHB.COM** to act for and on
its behalf as a true and lawful agent and attorney of the grantor for
and in the name, place, and stead of said grantor, from this date, in
the United States (the territory) either in writing, electronically or
by other authorized means to:

Make, endorse, sign, declare or swear to any Customs entry, withdrawal,
declaration, certificate, bill of lading, carnet or any other documents
required by law or regulation in connection with the importation,
exportation, or transportation of any merchandise in or through the
Customs territory, shipped or consigned by or to said grantor. Perform
any act or condition which may be required by law or regulation in
connection with such merchandise deliverable to said grantor; to receive
any merchandise.

Make endorsements on bills of lading conferring authority to transfer
title, make entry or collect drawback, and to make, sign, declare, or
swear to any statement or certificate required by law or regulation for
drawback purposes, regardless of whether such documents is intended for
filing with Customs.

Sign, seal, and deliver for and as the act of said grantor any bond
required by law or regulation in connection with the entry or withdrawal
of imported merchandise or merchandise exported with or without benefit
of drawback, or in connection with the entry, clearance, lading,
unlading or navigation of any vessel or other means of conveyance owned
or operated by said grantor, and any and all bonds which may be
voluntarily given and accepted under applicable laws and regulations,
consignee's and owner's declarations provided for in section 485, Tariff
Act of 1930, as amended, or affidavits in connection with the entry of
merchandise.

Sign and swear to any document and to perform any act that may be
necessary or required by law or regulation in connection with the
entering, clearing, lading, unlading or operation of any vessel or other
means of conveyance owned or operated by said grantor.

And generally to transact Customs business, including filing of claims
or protests under section 514 of the Tariff Act of 1930, or pursuant to
other laws of the territories, in which said grantor is or may be
concerned or interested and which may properly be transacted or
performed by an agent and attorney.

Giving to said agent and attorney full power and authority to do
anything whatever requisite and necessary to be done in the premises as
fully as said grantor could do if present and acting, hereby ratifying
and confirming all that the said agent and attorney shall lawfully do by
virtue of these presents; This power of attorney to remain in effect
until REVOKED.

IN WITNESS WHEREOF: the said QUICK IMPORTS, INC. has caused these
presents to be sealed and signed.

(Signature) ![](media/image1.png){width="1.5777777777777777in"
height="0.49583333333333335in"} (Capacity) **SECRETARY** (Date) March 6,
2007

39. \_\_\_\_\_ is the grantor.

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A.  Greg Hines dba E-CHB.com (Customs broker)

B.  Quick Imports, Inc.. (importer of record)

C.  CBP

D.  The surety company

E.  The overseas inland freight forwarder

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40. Which statement is **TRUE** based upon the POA presented to Greg
    Hines dba E-CHB.com?

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A.  The POA allows the broker to create a sub-agency relationship
    ([i.e.]{.underline}, assign the POA to another broker)

B.  The POA may be accepted by Greg Hines which will allow him to engage
    in Customs business

C.  The Secretary of an incorporated business entity must sign the POA

D.  The POA is invalid since it does not allow for the service of
    process

E.  A POA must be on CBP Form 5291 "Power of Attorney"

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41. Which statement is **FALSE** based upon the POA presented to Greg
    Hines dba E-CHB.com?

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A.  The POA does not require a completed statement of Corporate
    Certification, which is a written submission establishing the
    authority of the grantor designated to execute the POA on behalf of
    Quick Imports, Inc.

B.  The POA shall be made available to CBP

C.  Revoked POAs and letters of revocation must be retained for five (5)
    years after the date of revocation or for five (5) years after the
    date the client ceases to be an active client

D.  Failure of the broker to retain a valid POA may result in a monetary
    penalty of \$1,000

E.  The POA may be granted for an unlimited period

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42. Which statement is **CORRECT** based upon the POA presented to Greg
    Hines dba E-CHB.com?

    A.  Javier Barrientos, an employee of Greg Hines dba E-CHB.com in
        the import/export department, may prepare and present the entry
        summary to CBP

    B.  The POA does not fall within the scope of Customs business
        records

    C.  Mr. Hines shall exercise responsible supervision and control to
        ensure that the POA is completed by an individual duly
        authorized to sign and complete the document

    D.  The POA may be completed and signed after the merchandise has
        been released from the custody of CBP

    E.  A POA is not required for a formal entry where a company from a
        NAFTA signatory country has completed the POA

##  {#section-16 .unnumbered}

## [Section 4 TRADE AGREEMENTS]{.underline} 

43. When determining whether a good undergoes an applicable change in
    tariff classification for NAFTA country of origin purposes, you
    should disregard \_\_\_\_\_.

    A.  a NAFTA apparel product where a material does not undergo a
        change in tariff classification, but is not more than 7% of the
        total value of the product

    B.  a foreign component of a product found in HTSUS Chapter 15 that
        is less than 7% of the total weight

    C.  unassembled components of a product

    D.  retail packaging

    E.  cooked currant jelly, where an ingredient does not meet the
        change in tariff classification, but is 5% of the value of the
        good

44. The importer of men's pants from Mexico gives the broker a
    certificate of origin (CBP Form 434) showing that the fabric and all
    processing (cutting, sewing, etc.) originated or was performed in
    Mexico. The pants are classified under 6203.41.1810 at 41.9
    cents/kilogram + 16.3% ad valorem. How will you enter the pants?

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A.  Duty free under the U.S.-Central American Free Trade Agreement

B.  Duty free under the U.S.-North American Free Trade Agreement

C.  Dutiable at 41.9 cents/kilogram + 16.3% ad valorem

D.  Duty free under the Generalized System of Preferences

E.  Duty free because this is a designated Beneficiary Country under the
    Andean Trade Promotion and Drug Eradication Act

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45. After filing the entry summary for picture frames from Canada, you
    realize they are eligible for duty free treatment under the North
    American Free Trade Agreement. Since the goods were entered as
    dutiable, you should \_\_\_\_\_.

    A.  file a claim under Section 520(d) within 180 days after
        liquidation

    B.  file a claim under Section 520(c) within 365 days from the date
        of liquidation

    C.  file a claim under Section 520(c) within 180 days from date of
        liquidation

    D.  file a claim under Section 520(d) within 365 days from the date
        of entry

    E.  wait until the entry liquidates and file a protest under Section
        514 within 180 days

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46. Which is **NOT** considered additional supporting documentation for
    verification that a good qualifies for a preferential duty rate?

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A.  Growth or Manufacture of Growth

B.  Cost Data

C.  Production Records

D.  List of Indirect Materials

E.  Bill of Lading

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47. What action(s) may be taken after a CBP origin verification finds a
    Canadian company, an experienced importer, deliberately failed to
    maintain records supporting its NAFTA claim because it would be too
    difficult to substantiate? The entry verified has **NOT**
    liquidated.

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A.  CBP may collect duty and assess a recordkeeping penalty

B.  CBP may only deny the NAFTA claim and collect duty

C.  CBP may not collect duty but may assess a fraud penalty

D.  CBP may assess a recordkeeping and a fraud penalty

E.  CBP may not take any action

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48. Which statement is **TRUE** regarding an order of woven cotton
    dresses?

-   Shipped from Israel directly to the U.S.

-   Fabric woven in Pakistan comprises 64% of the value of the dresses

-   Polyester trim fabric woven in Puerto Rico comprises 5% of the value
    of the dresses

-   Dresses were cut and sewn in Israel which compromises 31% of the
    value of the dresses

A.  The country of origin of the dresses is Israel and they qualify for
    the United States Israel Free Trade Area (USIFTA)

B.  The country of origin of the dresses is Israel and the Pakistani
    fabric disqualifies the dresses for the USIFTA

C.  The country of origin of the dresses is Israel and there is
    insufficient value added to qualify it for USIFTA

D.  The country of origin of the dresses is the United States of America

E.  The dresses are classified in Chapter 61 of the HTS

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49. Which statement is **TRUE** regarding this shipment of sweaters?

-   Wool yarn is formed in Australia

-   Nylon filament yarn is formed in Korea, which is subsequently
    forwarded to Australia

-   The components are knit to shape and linked and looped in Australia
    to form a 90% wool, 10% nylon sweater

-   The finished product, the sweaters, are shipped directly to the
    United States from Australia

A.  The country of origin is Korea

B.  The Korean nylon filament is less than the *de minimis* allowable
    for foreign fiber of yarn

C.  The wool sweaters do not qualify for the United States-Australian
    Free Trade Agreement

D.  The wool sweaters qualify for the United States-Australian Free
    Trade Agreement

E.  The wool sweaters qualify for Generalized System of Preferences

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50. The NAFTA Certificate of Origin must be retained in the \_\_\_\_\_.

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A.  U.S. by the importer until notification of liquidation is received
    from CBP

B.  NAFTA country of origin by the producer for one year after
    liquidation

C.  NAFTA country of origin by the producer for five years after
    liquidation

D.  U.S. for five years after entry of the good with all relevant
    documentation

E.  NAFTA country of origin for five years after entry with all related
    documentation

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51. The U.S. and \_\_\_\_\_ are parties to the Central American Free
    Trade Agreement.

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A.  the Dominican Republic, Honduras, Guatemala, El Salvador, and
    Nicaragua

B.  Costa Rica, the Dominican Republic, Honduras, Guatemala, El
    Salvador, and Nicaragua

C.  Dominica, Honduras, Guatemala, El Salvador, and Nicaragua

D.  Costa Rica, Guyana, Panama, Trinidad, and Saint Lucia

E.  the Republic of Angola, the Republic of Ghana, and the Republic of
    Kenya

## [Section 5 DRAWBACK]{.underline}

52. Company A imports screws. The imported screws are sold to Company B,
    which uses the screws to manufacture tables. Company B exports the
    tables to Spain. Which CBP Form must Company A obtain from Company B
    to claim drawback on the imported screws?

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A.  5106

B.  7552

C.  7553

D.  7514

E.  4811

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53. For all drawback claims filed, the HTSUS numbers and Schedule B
    commodity numbers must be stated to at least \_\_\_\_ digits.

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A.  two

B.  four

C.  six

D.  eight

E.  ten

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54. Drawback claimants who meet the requirements set forth in 19 CFR
    \_\_\_\_\_ are afforded the special privilege of accelerated payment
    of drawback.

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A.  191.91

B.  191.92

C.  191.32

D.  191.36

E.  191.81

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55. Records pertaining to the filing of a drawback claim need to be
    retained for \_\_\_\_\_ after the date of payment of such claim.

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A.  3 years

B.  6 months

C.  2 years

D.  3 months

E.  1 year

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56. A drawback claim was filed on June 2, 2006. Review of the drawback
    claim revealed untimely exports. On January 15, 2007, the drawback
    claim was liquidated for no drawback. The drawback claimant must
    \_\_\_\_\_ to challenge the liquidation of the drawback claim.

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A.  amend the drawback claim

B.  perfect the drawback claim

C.  file a timely protest

D.  provide a notice of intent to export, destroy, or return merchandise
    for purposes of drawback

E.  provide a written request for payment of drawback based on estimated
    duties

## [Section 6 VALUE]{.underline}

57. The foreign commercial invoice shows a value of \$7200 with an
    addition of \$800 for "distributor fee," for a total invoice value
    of \$8000. The fee charged by the seller was to compensate the
    exclusive U.S. distributor who, by agreement with the foreign
    seller, receives 10% of all sales in the U.S. as a commission. They
    receive this regardless of whether or not they actually make the
    sale. The \$800 is \_\_\_\_\_.

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A.  not part of Transaction Value

B.  a buying commission to be added to the price actually paid or
    payable

C.  a buying commission; part of the price actually paid or payable

D.  a selling commission to be added to the price actually paid or
    payable

E.  a selling commission; part of the price actually paid or payable

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58. Determine the entered value for a shipment of 150 dolls invoiced at
    2.52 GBP (British Pounds) each. The date of export is May 29, 2007,
    the date of entry is July 18, 2007, and date of import is July 24,
    2007.

> Rates of Exchange: (GBP in U.S. Dollars)
>
> May 29 1.98393
>
> July 18 2.04098
>
> July 24 2.05769

A.  \$ 771

B.  \$ 750

C.  \$ 298

D.  \$ 306

E.  \$ 778

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59. In the following scenario, what is the transaction value of an
    importation of 1000 metal frames invoiced at \$1000? A U.S. importer
    hires a foreign manufacturer to make the frames at \$1 apiece, and
    sends the manufacturer, via an air carrier, \$500 worth of tooling
    needed to make the frames. The air carrier charges the U.S. importer
    \$100, which the importer tells the manufacturer to take off the
    invoice.

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A.  \$ 500

B.  \$1,000

C.  \$1,600

D.  \$ 900

E.  \$ 400

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60. Under transaction value, the \_\_\_\_\_ is **NOT** an addition to
    the price actually paid or payable.

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A.  commission paid to a buyer's agent that is billed separately

B.  cost of fabric sent by the buyer to the seller, free of charge,
    specifically for the production of dresses ordered by the buyer

C.  cost of exterior cartons used to ship an order of dresses

D.  cost of transportation of glass molds provided by the buyer to the
    seller, free of charge, to use in manufacturing ophthalmic lenses

E.  royalty paid to the foreign seller and patent holder as a condition
    of the sale to the importer

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61. Transaction value cannot be used if \_\_\_\_\_.

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A.  the manufacturer employed a selling agent to arrange the sale

B.  the buyer and seller are related

C.  the manufacturer only sells to one importer in the U.S.

D.  there is a restriction by law on the use of the imported product in
    the U.S.

E.  promotional goods or samples are shipped free of charge

### [Section 7 WAREHOUSE]{.underline}

### 

62. A \_\_\_\_\_ fee is due and payable to CBP when commercial cargo
    imported by a commercial vessel at Los Angeles enters a warehouse?

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A.  broker permit

B.  dutiable mail

C.  harbor maintenance

D.  cotton

E.  merchandising processing

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63. What type of merchandise is **NOT** eligible for warehousing?

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A.  Textiles

B.  Automobiles

C.  Textiles and automobiles

D.  None - all merchandise is eligible

E.  Perishable and explosive substances other than firecrackers

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64. How long may merchandise remain stored in a Customs Bonded
    Warehouse?

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A.  5 years from the date of importation

B.  3 years from the date of importation

C.  1 year from the date of importation plus a one-year year extension

D.  2 years from the date of importation plus a one-year year extension

E.  Indefinitely

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65. Merchandise with a \_\_\_\_\_ status that is transferred from a
    Foreign Trade Zone to Customs territory will be classified and
    appraised according to its condition at the time application for
    that status was made.

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A.  zone-restricted

B.  zone-unrestricted

C.  domestic

D.  non-privileged foreign

E.  privileged foreign

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66. Which statement about foreign trade zones is **FALSE**?

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A.  No merchandise may be manipulated, manufactured, exhibited destroyed
    or transferred from a zone except under CBP permit

B.  Once established, privileged foreign status may not be changed

C.  Upon issuing a permit for the removal of merchandise from a zone,
    the merchandise is released to the operator

D.  Except for articles used in a zone, merchandise must be physically
    removed from the zone within 5 working days of issuance of a permit
    authorizing transfer from the zone

E.  Foreign merchandise that has been entered free of duty and tax may
    be granted domestic status

### [Section 8 GENERAL]{.underline}

67. What is the amount of the bond required for a carnet?

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A.  The value of the merchandise shown on the carnet

B.  Three times the value of the merchandise

C.  The carnet is its own bond so no additional bond is required

D.  The amount of the importer's continuous bond if one is on file with
    CBP

E.  The value of the merchandise plus any duty and fees

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68. A CBP Form \_\_\_\_\_ must be presented to CBP timely to request an
    extension to a Temporary Importation under Bond (TIB) entry.

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A.  7501

B.  3461

C.  6043

D.  3173

E.  3495

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69. What is the **MINIMUM** amount of a new continuous bond for an
    importer who, in the previous calendar year, paid \$817,543 in
    duties, \$41,908 in taxes and fees, and imported a total value of
    \$11,860,739?

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A.  \$50,000

B.  \$80,000

C.  \$90,000

D.  \$860,000

E.  \$1,200,000

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70. The amount of the bond required for articles entered under HTS
    9813.00.20 is \_\_\_\_\_.

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A.  double the estimated duties, including fees

B.  double the estimated duties, excluding fees

C.  110% of the total duties, including fees

D.  not required since it is a temporary import

E.  \$ 485

### 

71. What are the marking requirements for an imported article, made
    outside of the U.S., on which the name "Maine" appears?

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A.  The word "Maine" on the item is sufficient to satisfy the marking
    requirements

B.  The name of the country where the item was produced must appear
    somewhere on the article

C.  The name of the country where the item was produced must appear
    anywhere on the article in the same size print as the word "Maine"

D.  The importer can have the marking requirements waived in this
    instance

E.  The country of production of the article must appear in close
    proximity and in at least a comparable size to the word "Maine," and
    must be preceded by "Made in" or "Product of"

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72. What is the International Standard Country Code for South Africa?

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A.  AF

B.  SA

C.  ZA

D.  SO

E.  AU

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73. A formal entry is filed, merchandise is released, duties are paid,
    and the entry has a future liquidation date. The broker then
    discovers the merchandise was misclassified, resulting in an
    overpayment of duties. To request a refund, the broker should submit
    a \_\_\_\_\_ to CBP.

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A.  CBP Form 19 -- Protest

B.  Post Entry Amendment (PEA) or Supplemental Information Letter (SIL)

C.  request for refund on company letterhead

D.  request for correction of clerical error prior to liquidation under

> 19 USC 1520(a)(4)

E.  prior disclosure

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74. What can be done to contest the denial of a protest?

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A.  File a civil action in the Court of International Trade within 180
    days from the date of the denied protest

B.  Request further review under 19 CFR 174.23

C.  File a request for a binding ruling with the National Import
    Specialist

D.  Nothing

E.  File a petition with the office of Fines, Penalties, and Forfeitures

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75. How long does the importer have to request a written explanation
    from CBP of how the value of the imported merchandise was
    determined?

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A.  20 days

B.  30 days

C.  90 days

D.  180 days

E.  365 days

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76. When the transaction is in a foreign currency, the date that should
    be considered for conversion purposes is when the goods were
    \_\_\_\_\_.

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A.  imported into the U.S.

B.  sold

C.  intended to be shipped to the U.S.

D.  packed

E.  exported from the country of export

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77. The Port Director must act within \_\_\_\_\_days from the date a
    protest is filed relating to an administrative action, under any
    provision of the CBP laws, involving exclusion of merchandise from
    entry or delivery.

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A.  15

B.  20

C.  30

D.  45

E.  60

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78. Once the receiving airline gives the receipt for cargo at the first
    port of arrival, air cargo shipments being transported to another
    U.S. port must be delivered to CBP within \_\_\_\_\_.

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A.  15 days

B.  30 days

C.  10 days

D.  5 days with one extension

E.  10 days with one extension

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79. When can an importer identification number be removed from CBP's
    file due to inactivity?

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A.  3 months from the date it was filed with CBP

B.  3 months from the date it was last used on a CBP Form 7501

C.  6 months from the date it was filed with CBP

D.  12 months from the date it was last used on a CBP Form 7501

E.  12 months from the date it was filed with CBP

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80. What is the **Manufacturer Identification Code** for goods
    manufactured by Pt Agro Chemicals located at 10 Kendung Baruk Suite
    400 in Jakarta, Indonesia but sold and invoiced by A.A. Trading
    located at Ulujami Raya No. 15 in Pakanbaru, Indonesia?

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A.  IDAGRCHE10JAK

B.  IDAATRA15PAK

C.  IDPTAGR10JAK

D.  IDAGRCHE400JAK

E.  IDPTAGR400JAK

**STOP.**

**THIS IS THE END OF THE TEST.**

**You may use the remaining time to go back and check your answers.**

**Please double check that your address is CORRECTLY bubbled in on your
answer sheet. Your entire address must be filled in, including apartment
numbers. Incorrectly bubbling of your address will delay notification of
the results of the exam. If your address does not fit into the
appropriate boxes, provide the Test Administrator with your full address
AFTER the exam.**