Broker and Importer Compliance Flashcards
7 cards from real CCS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Broker and Importer Compliance flashcards as text
An importer wishes to obtain advance certainty on the tariff classification of a new product before importing. The appropriate mechanism is to file:
Answer: A binding tariff classification ruling request with CBP
A binding ruling request filed with CBP's National Commodity Specialist Division provides advance classification certainty binding on CBP ports of entry.
Under 19 CFR 111.36, a broker's failure to remit duties collected from a client to CBP within the required timeframe may result in:
Answer: Assessment of interest and potential license revocation proceedings
Failure to timely remit collected duties exposes the broker to interest charges and disciplinary proceedings including possible license revocation under 19 CFR 111.36.
Which type of CBP audit evaluates an importer's internal controls, accounting systems, and compliance policies across all entry types and trade programs?
Answer: Focused Assessment (FA)
A Focused Assessment is a comprehensive audit examining an importer's internal controls, systems, and compliance across all trade activities.
Under 19 CFR Part 163, an importer's record-keeping obligation covers which categories of records?
Answer: All records pertaining to importations including accounting records, purchase orders, and contracts
19 CFR Part 163 broadly requires retention of all records relating to importations, including commercial, financial, and transportation documents, not just CBP forms.
A customs broker operating in multiple districts must obtain a permit in each district where it transacts customs business. Failure to obtain a district permit while conducting business in that district constitutes:
Answer: An unlicensed customs business violation under 19 CFR 111.43
Operating in a CBP district without the required permit violates 19 CFR 111.43 and can result in penalties and disciplinary action against the broker's license.
When an importer uses the 'computed value' method under the customs valuation hierarchy, the value is based on:
Answer: The cost of materials, fabrication, profit, and general expenses of the foreign producer
Computed value under 19 USC 1401a(e) is built up from the producer's cost of materials, fabrication costs, profit, and general expenses.
Under the continuous bond structure, if a CBP port determines an importer's bond is insufficient based on increased duty activity, CBP may issue:
Answer: A demand to increase the bond amount within a specified timeframe
CBP may demand that an importer increase its continuous bond amount when import activity indicates the current bond is insufficient to protect revenue.