**Series 420** **Test No. 581**

**October 2006**

**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 (2006)** (USITC
    Publication 3833)

-   **Title 19, Code of Federal Regulations** Revised as of April 1,
    2005 (**Parts 1-199**)

> (***Note***: You may use other editions of these references. However,
> this examination is based on the April 1, 2005 Revision of 19 CFR,
> which does not reflect the organizational changes caused when the
> Customs Service became U.S. Customs and Border Protection (CBP) in
> March 2003)

-   **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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-   **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 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 1-15

**Section 2 - CLASSIFICATION Questions 16-30**

## Section 3 - BROKER COMPLIANCE Questions 31-40

## Section 4 - DRAWBACK Questions 41-45

## Section 5 - TRADE AGREEMENTS Questions 46-50

### Section 6 - VALUE Questions 51-55

### Section 7 - BONDS Questions 56-60

# Section 8 - WAREHOUSE Questions 61-65

## Section 9 - GENERAL Questions 66-80

# [Section 1 ENTRY]{.underline}

1.  What is the **Manufacturer Identification Code (MID)** for Macedon
    Group of Israel, located at 23 Sargon Avenue in Ashdon, Israel?

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A.  IRMACGRO23SAR

B.  ILMACGRO23ASH

C.  ILMACGRO23SAR

D.  ISMACGRO23ASH

E.  ILMACEDO23ASH

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2.  A formal entry is legally liquidated \_\_\_\_\_.

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A.  When the import specialist makes final computation of duty

B.  When the courtesy notice of liquidation is mailed (postmarked)

C.  When the entry appears on the bulletin notice of liquidation posted
    or lodged in the Customhouse

D.  When the courtesy notice of liquidation is received

E.  90 days from the date of the bulletin notice of liquidation

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3.  Which of the following cannot be entered on a carnet?

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A.  Mail importations

B.  Road vehicles

C.  Commercial samples

D.  Advertising films

E.  Perishables

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4.  If a consumption entry has **NOT** been liquidated by CBP and its
    liquidation has not been extended or suspended, it will be deemed
    liquidated by operation of law within:

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A.  1 year from the date of importation

B.  1 year from the date of entry

C.  3 years from the date of entry

D.  3 years from the date of importation

E.  90 days from the date of importation

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5.  Quota priority and status are determined by:

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A.  Date and time of entry into a Foreign Trade Zone

B.  Date and time of warehouse entry

C.  Date and time of presentation of entry summary or withdrawal for
    consumption in proper form

D.  Date and time of presentation of entry documentation

E.  Date and time of special permit for immediate delivery

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6.  An entry for \_\_\_\_\_ is **NOT** a form of in-bond movement.

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A.  Immediate transportation without appraisment

B.  Transportation and removal

C.  Transportation and exportation

D.  Exportation

E.  Warehouse or re-warehouse withdrawal for transportation

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7.  The port director may demand return of non-textile merchandise to
    Customs custody no later than \_\_\_\_\_ calendar days after a
    shortage, misdelivery, or nondelivery is discovered by CBP.

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A.  5

B.  10

C.  15

######## 30 

D.  90

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8.  A shipment of shirts manufactured in Taiwan and subject to absolute
    quota arrives in the U.S. when the quota for this merchandise from
    Taiwan is closed. However, the quota for Mexico is open. The broker
    should:

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A.  Export the merchandise to Mexico and re-import into the U.S. as a
    product of Mexico

B.  Make a warehouse entry

C.  Request a visa waiver from the Taiwanese Embassy

D.  Request quota priority status

E.  Make a consumption entry and pay column 2 rates

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9.  What is the reporting quantity on the CBP Form 7501 for a shipment
    of polyester woven fabric, classified as 5407.74.0060, that is
    imported on 430 rolls, each measuring 52 inches in width by 60 yards
    in length? (Note: One meter = 39.37 inches.)

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A.  866 square meters

B.  655 square meters

C.  37,266 square meters

D.  34,077 square meters

E.  31,160 square meters

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10. A warehouse entry is entry type \_\_\_\_\_.

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A.  21

B.  11

C.  01

D.  23

E.  24

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11. On the CBP Form 7501, the correct entry type code for a Duty
    Deferral entry is \_\_\_\_\_.

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A.  34

B.  22

C.  08

######## 62

D.  05

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12. Which is **NOT** required to complete the CBP Form 7501?

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A.  The signature of the importer or authorized agent

B.  The identification number for merchandise subject to an antidumping
    or countervailing duty order

C.  The importer's identification number

D.  The marks and numbers previously provided for packages released or
    withdrawn

E.  The broker's identification number when a broker is used

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13. What **International Standard Country Code (ISO)** should be used
    when constructing a Manufacturer Identification code (MID) for a
    shipment of textiles from Nunavut, Canada?

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A.  XV

B.  NU

C.  NT

D.  NN

E.  XN

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14. The \_\_\_\_\_ is acceptable for international commercial goods to
    be temporarily entered, or temporarily entered and transported.

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A.  In-transit bond

B.  Formal entry

C.  A.T.A. carnet

D.  Informal entry

E.  Customs bond

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15. Based on the following scenario, which answer is **INCORRECT**?

    -   An importer orders a shipment of 100 garments from Germany to
        arrive in New York under one bill of lading.

    -   Due to weight limitations the carrier splits the shipment.

    -   Eighty (80) garments arrive in New York on June 1, 2005.

    -   The other 20 garments arrive in North Carolina on June 3, 2005,
        are sent to New York in-bond on an immediate transportation
        entry, and arrive on June 5, 2005.

    -   On June 6, 2005, the importer notifies CBP in New York that the
        ordered shipment was split at the carrier's initiative.

    -   The same day the carrier transmits manifest information to CBP
        for each portion of the split shipment.

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A.  If the importer chooses to make entry on a special permit prior to
    the arrival of the entire shipment, the entry summary is due 10 days
    from the date of the first release of a portion of the split
    shipment.

B.  If Customs denies the special permit for immediate delivery prior to
    the arrival of the entire shipment, the importer may make entry
    after all portions of the entire shipment have arrived.

C.  Merchandise comprising separate portions of a split shipment on one
    entry will be classified as if they were imported together.

D.  If any portion of a split shipment is subject to quota, no portion
    may be released incrementally.

E.  The importer may file a special permit for immediate delivery of the
    first portion of the cargo on June 6, 2005, and the cargo will be
    released in separate portions.

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

16. What is the **CLASSIFICATION** for a shipment of maraschino cherries
    preserved in syrup?

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A.  1207.20.0090

B.  0603.10.6060

C.  0809.20.0000

D.  2006.00.4000

E.  2008.60.0020

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17. What is the **CLASSIFICATION** of a nuclear reactor?

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A.  4011.30.0050

B.  3926.90.5000

C.  8401.10.0000

D.  8603.10.0000

E.  8401.40.0000

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18. What is the **CLASSIFICATION** of a woven nylon scarf measuring 55
    cm x 50 cm?

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A.  6214.30.0000

B.  6214.40.0000

C.  6213.90.1000

D.  6117.10.2030

E.  6117.10.6020

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19. What is the **CLASSIFICATION** for a shipment of 100% wool knit
    collars and cuffs, which are considered parts of a jacket and will
    be sewn onto a jacket after importation?

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A.  6117.90.9045

B.  6103.21.0070

C.  6203.29.2060

D.  6214.20.0000

E.  6217.90.9030

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20. What is the **CLASSIFICATION** of a mini umbrella hat composed of
    woven polyester fabric? It is a folding umbrella with a
    spring-loaded top. When unsnapped from its folded position it opens
    up to an umbrella with an adjustable headband that enables it to be
    worn on the head.

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A.  HTS 6601.10.0000

B.  HTS 6601.91.0000

C.  HTS 6505.90.2060

D.  HTS 6603.20.9000

E.  HTS 6505.90.8090

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21. What is the **CLASSIFICATION** for a 1995 road tractor pulling a
    1995 dry van trailer?

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A.  8701.20.0080

B.  8701.20.0080 and 8716.39.0040

C.  8704.23.0000 and 8716.39.0040

D.  8704.21.0000

E.  8716.39.0040

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22. What is the **CLASSIFICATION** for a battery-operated portable
    plastic flashlight?

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A.  9405.40.8000

B.  9405.50.4000

C.  8539.29.3020

D.  3926.90.9880

E.  8513.10.2000

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23. What is the **CLASSIFICATION** for a blank (without holes or lines)
    porcelain ceramic substrate that is used for technical purposes and
    not dedicated to any specific use?

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A.  8546.20.0090

B.  8548.90.0000

C.  6914.90.8000

D.  8542.90.0000

E.  6909.11.4000

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24. What is the **CLASSIFICATION** for a woman's girdle constructed from

> 100 percent man-made fiber polyester knitted fabric?

A.  6108.91.0015

B.  6212.20.0020

C.  6108.92.0015

D.  6212.20.0010

E.  6212.20.0030

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25. What is the **CLASSIFICATION** for an all-white short sleeve shirt
    constructed from 100 percent cotton "not knit" fabric? The shirt
    extends to the waist, features a full frontal opening with ten "left
    over right" button closures at the front of the garment, and has
    darts stitched to its front and rear panels for shaping.

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A.  6206.30.3040

B.  6205.20.2025

C.  6211.42.0056

D.  6211.32.0060

E.  6206.30.3010

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26. What is the **CLASSIFICATION** and **RATE OF DUTY** for an electron
    beam microscope fitted with semiconductor wafer handling equipment
    at the time of import? The country of origin is Australia.

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A.  9031.41.0040/FREE

B.  9012.10.0000/3.5%

C.  9012.10.0000/FREE

D.  9031.80.8085/1.7%

E.  9031.80.4000/FREE

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27. What is the **CLASSIFICATION** of an 8-ounce handheld cellular phone
    imported as a complete unit incorporating a transceiver, speaker,
    microphone, buttons, display and antenna?

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A.  8517.11.0000

B.  8525.20.9070

C.  8517.80.1020

D.  8518.30.1000

E.  8517.19.8070

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28. Plain weave fabric, weighting not more than 170 grams per square
    meter, of average yarn numbers 43-68, containing more than 33
    singles yarns per square centimeter and not containing multiple
    (folded) or cabled yarns, of square construction, is \_\_\_\_\_.

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A.  Poplin

B.  Flat fabrics

C.  Broadcloth

D.  Square Construction fabric

E.  Printcloth

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29. What is the **CLASSIFICATION** for live chickens weighing 2500g?

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A.  0105.11.00

B.  0105.12.00

C.  0104.20.00

D.  0105.93.00

E.  0106.31.00

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30. What is the **CLASSIFICATION** of liquefied propane with a purity of
    89 liquid volume percent?

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A.  2711.29.0010

B.  2711.12.0010

C.  2711.19.0020

D.  2711.29.0015

E.  2711.12.0020

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

31. Payments of duty received by a broker from a client after the due
    date must be transmitted to CBP within \_\_\_\_\_ working days from
    receipt by the broker.

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A.  1

######## 3 

B.  5

C.  10

D.  30

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32. A monetary penalty will **NOT** be assessed under 19 CFR 111.91 (a)
    against a :

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A.  person for transacting Customs business without a license

B.  broker who has deceived, misled or threatened a client

C.  broker who has made a material false statement

D.  broker who knowingly employed a convicted felon without approval

E.  broker who has made an application containing false or misleading
    information

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33. A broker must provide written notification to CBP within \_\_\_\_\_
    calendar days after terminating any employee "other than the license
    qualifier" the broker had employed longer than 30 consecutive days.

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A.  10

B.  15

C.  20

D.  25

E.  30

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34. The triennial status report and fee must be addressed to \_\_\_\_\_.

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A.  The director of the port through which the permit was delivered

B.  The Broker Management Chief in Washington, D.C.

C.  The director of the port through which the license was delivered to
    the licensee

D.  The quota branch

E.  Any port where the broker is permitted, even though the broker did
    not receive a broker license at that port

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35. Once a corporate broker learns an employee was arrested and
    convicted of a felony charge back in 1992, and actually served 5
    years in prison, the broker:

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A.  May continue to employ the employee since the conviction occurred
    over 10 years ago

B.  Must immediately terminate the employee

C.  Must notify the port director where the broker is licensed to report
    the employment as a convicted felon

D.  Must send written notification informing the Assistant Commissioner
    of CBP that the broker is employing a convicted felon and request a
    waiver to continue this employment

E.  Must terminate the employee within 30 days or lose the corporate
    license

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36. An individually licensed broker who is permitted in Pembina, North
    Dakota, and wishes to enter merchandise in Warroad, Minnesota,
    \_\_\_\_\_.

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A.  shall obtain an additional permit to conduct Customs business in
    Warroad

B.  shall hire a licensed broker in Warroad

C.  shall apply for a waiver from the requirement to have a licensed
    employee in Warroad

D.  shall incorporate in the State of Minnesota before he may perform
    any Customs business in Warroad

E.  may make entry

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37. ABC, Inc., an express consignment courier that is also a licensed
    broker, enters merchandise where ABC, Inc. acts as the importer of
    record. CBP determines the merchandise to be counterfeit and seizes
    the merchandise. This is the third instance where ABC, Inc. has been
    identified in the importation and seizure of counterfeit merchandise
    by means of acting as the importer of record and broker. For aiding
    and abetting the importation of the counterfeit merchandise, CBP
    will issue a \_\_\_\_\_.

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A.  fine against the ultimate consignee not more than three times the
    value that the merchandise would have had if it were genuine,
    according to the U.S. manufacturer's suggested retail price (MSRP)

B.  fine against the broker not more than twice the value that the
    merchandise would have had if it were genuine, according to the U.S.
    MSRP

C.  fine against the carrier not more than one and half times the value
    that the merchandise would have had if it were genuine, according to
    the U.S. MSRP

D.  fine against the supplier of not more than the U.S. MSRP

E.  CBP Form 3461 with the broker

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38. A broker may **NOT** be assessed a penalty under 19 USC1592 unless
    the:

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A.  violation solely involves a failure to exercise responsible
    supervision and control over the customs business it conducts

B.  violation involves gross negligence or negligence and the broker did
    NOT share in the benefits of the violation

C.  broker is culpable and the violation involves gross negligence or
    negligence and the broker shared in the benefits of the violation or
    if the violation involves fraud

D.  broker has an activity code 1 Customs Bond on file prior to the
    issuance of the penalty

E.  broker's license or permit has been revoked or suspended before the
    issuance of the penalty

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39. A Customs broker license is required for a(n) \_\_\_\_\_.

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A.  person who transacts business in connection with the entry or
    clearance of vessels

B.  person who works for himself or herself to transact customs business
    on behalf of other companies

C.  Foreign Trade Zone (FTZ) operator who engages in activities within
    the FTZ that do not involve the transfer of merchandise to the
    customs territory of the U.S.

D.  carrier who makes entry on merchandise for transportation in-bond

E.  importer who is transacting customs business solely on and for his
    or her own account

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40. The license of a broker that is a corporation or association can be
    revoked by operation of law if it fails for \_\_\_\_\_ continuous
    days to have at least one officer of the corporation or association
    who holds a valid individual broker license.

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A.  120

B.  160

C.  60

D.  30

E.  180

## [Section 4 DRAWBACK]{.underline}

41. Which must be submitted with a notification of a name change by a
    corporation filing drawback to determine drawback successorship?

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A.  Resolution from the Board of Directors

B.  Amended Articles of Incorporation

C.  CBP Form 5106

D.  Notification of action by the Secretary of State in which the
    company is incorporated

E.  Amendment to the Certificate of Incorporation

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42. Which inventory accounting method is acceptable for direct
    identification for filing drawback claims under the provisions of
    1313(a) or 1313(j)(1)?

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A.  Foreign in, foreign out

B.  Deductive

C.  High-to-low

D.  Quarterly close out

E.  Last-in, first out

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43. How much of the duty paid can be refunded on a drawback claim for a
    machine imported into the U.S. in 2005, tested for precision, then
    sold and exported to a customer in Canada?

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A.  None

B.  Partial

C.  99%

D.  The amount allowed under the lesser of the two rule

E.  100%

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44. When must a drawback claim be filed for shirts imported into the
    U.S. and warehoused July 15, 2000, sold to a foreign buyer September
    20, 2002, and exported October 15, 2002?

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A.  No later than July 15, 2006

B.  No later than October 15, 2007

C.  No later than July 15, 2004

D.  No later than July 15, 2007

E.  No later than October 15, 2005

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45. What is the proper amount of drawback per unit due to a U.S.
    producer who imports material from Japan, pays \$2 per unit in duty,
    deposits \$1 in anti-dumping duties per unit, and then uses the
    material as a component in the manufacture of a NAFTA-originating
    product he exports to Canada? (Note: The product is entered in
    Canada at a FREE rate of duty.)

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A.  \$0

B.  \$1

C.  \$2

D.  \$3

E.  \$2 plus the portion of the Merchandise Processing Fee apportioned
    to the material

## [Section 5 TRADE AGREEMENTS]{.underline}

46. Would a garment classifiable in Chapter 62 and shipped to the U.S.
    qualify for treatment under the U.S. - Australia Free Trade
    Agreement (UAFTA) if it is manufactured in Australia of Australian
    silk (94%), elastomeric yarn made in Peru (3%) and cotton lace made
    in Ethiopia (3%)?

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A.  Yes, because the chief weight of the fabric is made in the territory
    of a UAFTA party

B.  No, because the cotton lace trimming is not made in the territory of
    a UAFTA party

C.  Yes, because the de minimus rule states "an originating textile or
    apparel good may contain 7% by weight of foreign fibers or yarns"

D.  No, because the fact that the cotton lace is made in Ethiopia would
    shift the garment to be considered under the African Growth and
    Opportunity Act

E.  No, because the elastomeric yarn is made in Peru

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47. For CBP record keeping purposes, where must an importer maintain
    records related to its claim of preferential treatment of textile
    articles under the African Growth and Opportunity Act?

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A.  At the foreign port of lading

B.  At the exporter's premises

C.  At the U.S. Embassy in the preferential country

D.  Within the U.S.

E.  At the first European port of arrival

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48. Which is **TRUE** regarding the Dominican Republic-Central
    America-United States Free Trade Agreement?

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A.  Panama is a party to the agreement

B.  The letter "P" or "P+" in the "Special" column indicates the article
    is eligible for preferences

C.  There are no quantitative limitations for any goods

D.  The rules of origin are the same as the North American Free Trade
    Agreement

E.  "DR" in the "Special" column refers to eligible products originating
    in the Dominican Republic

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49. Under NAFTA, the value of non-originating materials that do **NOT**
    undergo the applicable change in tariff classification when
    incorporated into a good of Chapter 22 of the HTS may be disregarded
    as ***de minimus*** if the value of those materials is no more than
    \_\_\_\_\_ of the value of the good.

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A.  5%

B.  7%

C.  10%

D.  15%

E.  20%

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50. Where would you find the specific rule of origin to determine
    whether socket wrenches imported from Canada and classified under
    HTS \# 8204.20.0000 qualify as NAFTA originating goods?

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A.  19 CFR 102.11

B.  19 CFR 102.20

C.  19 CFR Pt 181, App.

D.  HTSUS, General Note 12(t)

E.  HTSUS, General Note 25(o)

## [Section 6 VALUE]{.underline}

### 

51. Which is **NOT** a requirement for an assist?

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A.  It must be for use in connection with the production or the sale for
    export to the U.S. of the imported good

B.  It must be supplied by the seller to the buyer

C.  It must be furnished directly or indirectly

D.  It must be furnished free or at reduced cost

E.  It must be supplied by the buyer to the seller

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52. What is the dutiable value for the following transaction? The terms
    of sale are delivered, duty and fees paid, Chicago. The commercial
    invoice appears as follows:

> 12,000 dozen baseball caps, @ \$30 per dozen . . . . . . . . \$360,000
>
> International freight charges . . . . . . . . . . . . . . . . . . . .
> . . . 2,500
>
> International insurance . . . . . . . . . . . . . . . . . . . . . . .
> . . . . 800
>
> Brokerage charges . . . . . . . . . . . . . . . . . . . . . . . . . .
> . . . [. 150]{.underline}
>
> Total DDP Price . . . . . . . . . . . . . . . . . . . . . . . . . . .
> . . . . .\$363,450
>
> The caps are classified 6505.90.8090 @ \$0.187 per kg. + 6.8%. The net
> weight of the shipment is 8,000 kgs. The actual ocean freight charges
> were \$2,800. Transaction Value is the appropriate basis of
> appraisement.

A.  \$335,207

B.  \$334,348

C.  \$333,398

D.  \$334,927

E.  \$336,325

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53. What is the **ENTERED VALUE** for a shipment of 1,000 closed circuit
    television camera lenses with a unit value of 472 Euros F.O.B.
    (including a 4 Euro per unit testing charge)? The exchange rate is
    1.29 U.S. dollars per Euro.

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A.  U.S. \$608,880

B.  U.S. \$614,040

C.  U.S. \$472,000

D.  472,000 Euros

E.  476,000 Euros

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54. The price actually paid or payable for imported merchandise when
    sold for exportation to the U.S. is the \_\_\_\_\_.

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A.  Transaction Value minus the value of an assist

B.  Deductive Value

C.  Fair Market Value

D.  Transaction Value

E.  Computed Value

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55. What is the basis of appraisement for the following situation?

-   A U.S. produce distributor imports Grade "A" tomatoes from Mexico on
    consignment.

-   Within a week after importation, the distributor sells this produce
    to unrelated retailers for \$1.00 each and receives a 5% commission
    from the Mexican grower for its services.

-   All such tomatoes imported from Mexico are sold in this manner.

-   CBP possesses sufficient information to appraise this merchandise.

A.  Transaction value

B.  Transaction value of identical merchandise

C.  Transaction value of similar merchandise

D.  Deductive value

E.  Computed value

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

### 

56. The minimum amount of any Customs bond, unless otherwise provided
    for by law or regulation, is:

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A.  \$1,000

B.  \$50,000

C.  \$100

D.  \$10

E.  10 percent of the total duties, taxes, and fees paid to CBP the
    preceding year

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57. Each person who is required by law, regulation, or specific
    instruction to post a bond to secure a Customs transaction or
    multiple transactions must submit the bond application on a CBP Form
    \_\_\_\_\_.

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A.  301

B.  434

C.  178

D.  216

E.  1302

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58. The surety and the \_\_\_\_\_ remain liable on a terminated bond for
    obligations incurred prior to termination.

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A.  exporter

B.  broker

C.  principal

D.  ultimate consignee

E.  carrier

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59. If the termination of a bond is requested by the principal but no
    termination date is requested, the termination shall take effect on
    the \_\_\_\_\_ following the date of receipt of the request by the
    port director, or drawback office in the case of bonds relating to
    repayment of erroneous drawback payment.

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A.  fifth day

B.  tenth day

C.  fifth business day

D.  tenth business day

E.  thirtieth business day

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60. The minimum amount for a new continuous bond for an importer that
    paid \$2,575,000 in duty and \$215,000 in fees the preceding
    calendar year is \_\_\_\_\_.

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A.  \$300,000

B.  \$50,000

C.  \$200,000

D.  \$280,000

E.  \$279,000

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

61. Any proprietor of a bonded warehouse may be required on \_\_\_\_\_
    days notice from the port director to furnish a new bond on CBP Form
    301.

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A.  5

######## 10 

B.  15

C.  30

D.  90

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62. When preparing a warehouse withdrawal, a written statement of
    \_\_\_\_\_, including three specific amounts, is required.

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A.  Value

B.  Charges

C.  Quantity

D.  Duty

E.  Liability

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63. A \_\_\_\_\_ bonded warehouse, known as a general order warehouse,
    is established exclusively for the storage and disposition of
    general order merchandise.

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A.  Class 3

B.  Class 5

C.  Class 8

D.  Class 9

E.  Class 11

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64. How long can merchandise remain in a bonded warehouse beyond the
    date of importation?

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A.  Six years

B.  Seven years

C.  Five years

D.  Ten years

E.  Eight years

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65. Which Entry Type Code is used for a **WAREHOUSE WITHDRAWAL** of 100%
    Vietnamese synthetic fabric that is subject to Quota/Visa
    requirements and Chinese bedroom furniture that is subject to
    Antidumping?

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A.  38

B.  32

C.  31

D.  34

E.  23

####### Section 9 GENERAL

66. Which one of the following choices best defines involuntarily
    abandoned merchandise?

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A.  Imported merchandise upon which any duties or charges are

> unpaid, remaining in a bonded warehouse beyond the 5-year warehouse
> period

B.  Merchandise the port director takes possession of at the request of
    the consignee, or owner or master of the vessel, or person in charge
    of the vehicle in which the merchandise was imported

C.  Merchandise abandoned by the importer to the United States within 30
    days after entry in the case of merchandise not sent to the public
    stores for examination, or within 30 days after the release of the
    examination packages or merchandise in the case of merchandise sent
    to the public stores for examination

D.  Articles entered for a trade fair under the provisions of section 3
    of the Trade Fair Act of 1959 (19 U.S.C. 1752), which have been
    abandoned to the United States within 3 months of the closing of the
    fair

E.  Merchandise in a bonded warehouse abandoned by the consignee within
    3 years from the date of original importation

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67. Carriers are liable for payment of liquidated damages under the
    carriers bond for any \_\_\_\_\_, \_\_\_\_\_, or \_\_\_\_\_, as
    provided in such bond.

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A.  irregular delivery, early delivery, or uninsured delivery

B.  early delivery, uninsured delivery, or shortage

C.  unprotected delivery, uninsured delivery, or shortage

D.  shortage, failure to deliver, or irregular delivery

E.  uninsured delivery, failure to deliver, or early delivery

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68. A petition for relief from a notice of a claim for liquidated
    damages must be filed by the bond principal within:

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A.  30 days from receipt of the notice

B.  60 days from the date of mailing of the notice

C.  90 days from receipt of the notice

D.  120 days from the date of mailing of the notice

E.  180 days from receipt of the notice

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69. Which port is **NOT** subject to the harbor maintenance fee?

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A.  0411 -- Hartford, Connecticut

B.  0712 -- Champlain, New York

C.  0401 -- Boston, Massachusetts

D.  1601 -- Charleston, South Carolina

E.  5301 -- Houston, Texas

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70. Which of the following forms of payment are acceptable to CBP for
    duties, taxes, fees and/or other charges for commercial entries?

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A.  Credit or charge cards

B.  Checks with different written and numeric amounts that differ by \$2

C.  Checks presented to CBP in which the date is 8 months older than

> the current date

D.  Signed travelers' checks that are not countersigned

E.  Bank drafts, cashiers' checks, certified checks, and personal checks
    drawn on U.S. financial institutions and payable in U.S. funds

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71. Which is **NOT** a proper International Standard Country Code (ISO)?

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A.  CU

B.  EN

C.  CH

D.  WS

E.  CD

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72. A Canadian furniture distributor purchases upholstered chairs
    produced in France from fabric woven in Italy. The purchase order is
    sent to the manufacturer's sales office in Germany. The producer
    delivers the chairs by ocean carrier from its warehouse in Antwerp,
    Belgium to Montreal, Quebec. Six months after the chairs arrive in
    Canada, the distributor receives an order from a New York City
    retailer and ships the chairs to the U.S. For CBP purposes, what is
    the country of exportation of the merchandise?

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A.  Belgium

B.  Canada

######## France

C.  Germany

D.  Italy

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73. A restricted "gray market" article is a good bearing a \_\_\_\_\_.

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A.  Counterfeit trademark registered to a U.S. citizen or business for
    sale in the U.S.

B.  Counterfeit trademark registered to a U.S. citizen or business for
    sale in a country other than the U.S.

C.  Confusingly similar mark that is similar to a trademark registered
    to a U.S. citizen or business that has been applied without the
    permission of the trademark holder

D.  Genuine trademark on a foreign-made article, recorded by a U.S.
    citizen or business that has been imported without the authorization
    of the U.S. owner

E.  Genuine trademark recorded by a U.S. citizen or business that has
    been imported with the authorization of the U.S. owner

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74. Which location does **NOT** have a preclearance office?

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A.  Halifax, Nova Scotia

B.  Vancouver, British Columbia

C.  Edmonton, Alberta

D.  Orangestad, Aruba

E.  Freeport, Bahamas

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75. What ABI indicator is placed in Block 2 of the CBP Form 7501 for an
    ABI

> processed entry type '01' consumption entry that will be paid on a
> periodic monthly basis?

A.  ABI/S

B.  ABI/A

C.  ABI/P

D.  ABI/N

E.  ABI/N/L

Questions **76-80** are based on the following importation.

On April 12, 2005, an importer in the U.S. receives 500 single action
economy stopwatches shipped by air from Munich, Germany. The shipment
was entered and released through ABI by CBP April 8, 2005. The
stopwatches are packaged for retail sale and are invoiced at U.S. \$ 24
F.O.B per stopwatch. The Watch Information Sheet indicates the
following:

Manufacturer: Bern Watch Inc.

Model: A1020 Single Action Stopwatch

Features: \* Perfect for industrial use\
\* Start/stop by crown, reset by 10 o\'clock button\
\* Preset push button\
\* Long hand 60 sec per turn, 1/100 min. increments\
\* 30 minute short hand\
\* Rugged steel case

> \* 1 year warranty

\* Quality movement made in Switzerland

Type of Display: Mechanical with hands

Type of Movement: Mechanical Value US\$ 18.50

Type of Case: Base Metal, Chrome Plated Value US\$ 5.00

Type of Packaging: Clear Plastic Blister Pack Value US\$ 0.50

Battery Powered: No

Automatic Winding: No

Number of jewels in movement: 13

Country of Origin: Switzerland

76. What is the **DUTY** due on this entry?

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A.  \$ 560.00

B.  \$ 535.00

C.  \$ 235.00

D.  \$ 730.00

E.  \$ 23.50

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77. What is the merchandise processing fee due on this entry?

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A.  \$40.00

B.  \$25.00

C.  \$25.20

D.  \$ 2.00

E.  None

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78. What is the **International Standard Country Code (ISO)** for the
    country of origin?

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A.  CF

B.  CH

C.  CN

D.  SZ

E.  DE

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79. Which statement regarding the plastic blister packaging is **TRUE**?

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A.  The packaging is classified with the stopwatches

B.  The packaging is classified separately as articles of plastic

C.  The packaging costs are deducted from the entered value

D.  The importer's name must be on the packaging

E.  The manufacturer's name must be on the packaging

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80. Six months after the entry summary for the stopwatches was filed,
    the

importer informs the broker he gave a die (purchased from a nonrelated

U.S. firm at a cost of U.S. \$500) to Bern Watch Inc., without charge,
to be

used only for the manufacturing of the 500 stopwatches. Transportation

and duty costs to the importer to get the die to Bern were an additional

U.S. \$70. Based on this information, the broker should:

A.  Take no action because the entry summary is already projected for
    liquidation.

B.  Submit a SIL to CBP with a check for US \$570 because this is a
    proceed to the seller, Bern Watch Inc.

C.  Submit a SIL or a Prior Disclosure to CBP because this is an assist
    valued at US \$500.

D.  Submit a SIL or a Prior Disclosure to CBP because this is an assist
    valued at US \$570.

E.  Submit as a SIL requesting that the entered value be reduced by the
    amount of the assist and that the subsequent difference in duty and
    fees be refunded.

**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.**