CBLE Professional Ethics and Conduct 3 — Questions and Answers
Question 1: Under CBP regulations, a broker who has been convicted of a felony involving moral turpitude may have their license:
- Placed on probation for one year with mandatory training
- Revoked by the Secretary of Homeland Security (Correct answer)
- Automatically suspended pending appeal to the Commissioner
- Voluntarily surrendered in exchange for administrative penalty waiver
Correct answer: Revoked by the Secretary of Homeland Security
Under 19 USC 1641(d), CBP may revoke a broker's license for conviction of a felony involving moral turpitude.
Question 2: A customs broker receives a check from a client to cover duties but deposits it in the broker's general operating account instead of a separate trust account. This action:
- Is permissible as long as duties are remitted on time
- Violates the broker's fiduciary duty to handle client funds separately (Correct answer)
- Is acceptable only if the client provides written consent
- Is allowed for amounts under $10,000 to reduce administrative burden
Correct answer: Violates the broker's fiduciary duty to handle client funds separately
Brokers have a fiduciary obligation to safeguard client funds and must not commingle duty payments with their own operating funds.
Question 3: How often must a customs broker who is not associated with a licensed customs broker organization file a status report with CBP?
- Annually in February
- Every three years in February of the triennial period (Correct answer)
- Every five years on the license anniversary date
- Biennially in the year following license issuance
Correct answer: Every three years in February of the triennial period
Under 19 CFR 111.30, individual brokers must file a triennial status report every three years in February to maintain their license.
Question 4: A broker knowingly files a false entry by declaring goods as samples of no commercial value when they are actually for resale. This act may result in:
- A written warning on the first offense only
- Criminal prosecution under 18 USC 542 for entry of goods by false statement (Correct answer)
- Mandatory continuing education but no license sanction
- A civil fine capped at $1,000 per entry
Correct answer: Criminal prosecution under 18 USC 542 for entry of goods by false statement
Knowingly filing false entry documents can constitute a federal crime under 18 USC 542, in addition to civil penalties.
Question 5: When a client terminates a relationship with their customs broker mid-shipment, the broker's ethical duty is to:
- Immediately cease all actions and release all documents to the client
- Provide reasonable transitional assistance to avoid harm to the client's interests (Correct answer)
- Retain client documents until all outstanding fees are fully paid
- Notify CBP of the termination before releasing any entry documents
Correct answer: Provide reasonable transitional assistance to avoid harm to the client's interests
Even upon termination, a broker should provide reasonable assistance to transition the client's affairs and avoid prejudicing the client's interests.
Question 6: A broker who allows an unlicensed individual to exercise responsible supervision and control of customs business is subject to:
- A formal warning issued by the port director only
- License suspension or revocation and monetary penalties (Correct answer)
- A $500 administrative fine per transaction
- Mandatory supervisory training as a corrective measure
Correct answer: License suspension or revocation and monetary penalties
Permitting an unlicensed person to exercise responsible supervision violates 19 CFR 111.28 and may result in suspension, revocation, and penalties.
Question 7: Which best describes the 'responsible supervision' standard a customs broker must maintain over a licensed customs broker corporation's employees?
- Signing off on every entry personally before filing
- Ensuring employees are trained, supervised, and that errors are promptly corrected (Correct answer)
- Limiting employee access to only low-risk shipments
- Having all employees obtain broker licenses within one year of hire
Correct answer: Ensuring employees are trained, supervised, and that errors are promptly corrected
Responsible supervision means implementing procedures to ensure employee competence, oversight of their work, and timely correction of errors.
CBLE Professional Ethics and Conduct 3
Under CBP regulations, a broker who has been convicted of a felony involving moral turpitude may have their license: