CBLE Regulatory Compliance 2 — Questions and Answers
Question 1: Under 19 CFR 111, what is the maximum civil penalty for a customs broker who commits a negligent violation?
- $1,000 per violation up to $10,000
- $10,000 per violation up to $30,000 (Correct answer)
- $5,000 per violation up to $25,000
- $2,500 per violation up to $15,000
Correct answer: $10,000 per violation up to $30,000
Under 19 CFR 111.91, negligent violations carry a civil penalty of up to $10,000 per violation, not to exceed $30,000 per transaction.
Question 2: Which CBP form must a customs broker submit to notify CBP of a change in the broker's business address?
- CBP Form 3124 (Correct answer)
- CBP Form 5106
- CBP Form 3461
- CBP Form 7501
Correct answer: CBP Form 3124
CBP Form 3124 is used by licensed customs brokers to report changes such as address, organization, or responsible supervision.
Question 3: A customs broker discovers a prior disclosure opportunity after an error is found by CBP during an audit. Which statement is correct?
- Prior disclosure is still valid if filed before issuance of a formal investigation notice
- Prior disclosure can be filed at any time before penalty payment
- Prior disclosure is no longer available once CBP has identified the error (Correct answer)
- Prior disclosure applies only to importers, not brokers
Correct answer: Prior disclosure is no longer available once CBP has identified the error
Under 19 USC 1592(c)(4), prior disclosure is only available before CBP has formally identified the violation in a written notice.
Question 4: When must a licensed customs broker file an update to their triennial status report?
- Every year by February 1
- Every three years in the February following each third year after 1985 (Correct answer)
- Every five years by March 31
- Annually with the broker's license renewal
Correct answer: Every three years in the February following each third year after 1985
Under 19 CFR 111.30, brokers must file a triennial status report every three years in the February of that reporting year.
Question 5: Which document provides the statutory authority for CBP to regulate customs brokers?
- 19 USC 1484
- 19 USC 1641 (Correct answer)
- 19 USC 1592
- 19 USC 1401a
Correct answer: 19 USC 1641
19 USC 1641 is the primary statute authorizing CBP to license, regulate, and discipline customs brokers.
Question 6: A corporation holds a customs broker license. If the qualifying individual (licensed officer) leaves the company, what must the corporation do?
- Immediately surrender the license to CBP
- Obtain a new qualifying individual within 120 days or cease transacting customs business (Correct answer)
- Apply for an individual license within 30 days
- File a CBP Form 5106 and continue operations
Correct answer: Obtain a new qualifying individual within 120 days or cease transacting customs business
Under 19 CFR 111.11(b), a corporate license requires a qualifying individual at all times; failure to replace within 120 days requires ceasing customs broker activities.
Question 7: Under the Customs Modernization Act, which party bears the primary responsibility for exercising reasonable care in import compliance?
- The customs broker of record
- U.S. Customs and Border Protection
- The importer of record (Correct answer)
- The foreign exporter
Correct answer: The importer of record
The Customs Modernization Act shifted the compliance burden to the importer of record, who must exercise reasonable care in all import transactions.
CBLE Regulatory Compliance 2
Under 19 CFR 111, what is the maximum civil penalty for a customs broker who commits a negligent violation?