CBLE Regulations and Laws 2 — Questions and Answers
Question 1: Under 19 CFR Part 111, a customs broker's license is automatically suspended if the broker fails to pay the triennial status report fee within how many days after the due date?
- 30 days
- 60 days
- 90 days (Correct answer)
- 120 days
Correct answer: 90 days
A broker's license is suspended if the triennial status report and fee are not submitted within 90 days of the due date.
Question 2: Which statute governs the assessment and collection of customs duties on imported merchandise in the United States?
- The Trade Act of 1974
- The Tariff Act of 1930 (Correct answer)
- The Customs Modernization Act of 1993
- The Trade Expansion Act of 1962
Correct answer: The Tariff Act of 1930
The Tariff Act of 1930 (19 U.S.C.) is the foundational statute governing the assessment and collection of customs duties.
Question 3: Under CBP regulations, what is the maximum allowable time period for a temporary importation under bond (TIB) entry, including extensions?
- 1 year
- 2 years
- 3 years (Correct answer)
- 4 years
Correct answer: 3 years
A TIB entry is initially valid for one year but may be extended up to a total of three years.
Question 4: The 'first sale' rule for customs valuation allows an importer to use which transaction price as dutiable value?
- The price paid by the U.S. buyer to the foreign seller
- The price paid by the foreign manufacturer to the middleman (Correct answer)
- The final price charged to the U.S. consumer
- The average of all prices in the transaction chain
Correct answer: The price paid by the foreign manufacturer to the middleman
Under the first sale rule, the dutiable value can be based on the first sale in the chain of commerce—the manufacturer's price to the middleman—if certain conditions are met.
Question 5: Which regulation requires importers to file a Customs Bond (CBP Form 301) to ensure compliance with all CBP laws and regulations?
- 19 CFR Part 113 (Correct answer)
- 19 CFR Part 141
- 19 CFR Part 152
- 19 CFR Part 163
Correct answer: 19 CFR Part 113
19 CFR Part 113 governs customs bonds, including the requirement to file CBP Form 301 and the conditions of the bond.
Question 6: Under the Foreign Trade Zones Act, merchandise admitted to an FTZ in 'privileged foreign' status is subject to duty at what point?
- At the time of admission to the FTZ
- At the time the merchandise is manufactured into a new product
- At the time of transfer from the FTZ into U.S. commerce (Correct answer)
- At the time the merchandise is exported from the FTZ
Correct answer: At the time of transfer from the FTZ into U.S. commerce
Privileged foreign merchandise is assessed duties at the rate applicable at the time of transfer into U.S. customs territory, but based on its condition at the time of admission.
Question 7: Under 19 CFR 162.6, CBP officers have the authority to examine imported merchandise for how long after entry?
- 30 days
- 1 year
- 4 years (Correct answer)
- 5 years
Correct answer: 4 years
CBP has authority to examine or re-examine merchandise for up to 4 years after the date of entry under 19 U.S.C. 1514.
CBLE Regulations and Laws 2
Under 19 CFR Part 111, a customs broker's license is automatically suspended if the broker fails to pay the triennial status report fee within how many days after the due date?