CBLE Official CBP exam (May 2024) question: failed to maintain responsible supervision and control

CBLEOfficial CBP exam (May 2024)

Which of the following scenarios demonstrates that a customs broker may have failed to maintain responsible supervision and control over their customs business?

A John Smith Customs Brokerage (Smith) terminated Sally Johnson's (Johnson) employment. Johnson was listed in Smith's Automated Commercial Environment (ACE) portal account as the knowledgeable point of contact to be available to CBP during and outside of normal operating hours. Smith updated Johnson's employee record but did not designate a new knowledgeable point of contact in ACE. CBP has been unable to contact Smith for over six months.
B Countrywide Customs Brokerage (Countrywide) has ten offices across the United States under a National Permit with an approved supervision plan. Two of these offices do not have a licensed broker on site and have not had one for six months. Although Countrywide has not requested a waiver, Countrywide has a licensed broker conduct a supervisory visit twice a week to those offices.
C National Customs Brokerage (National) unwittingly hired James Jones, Sr., a convicted felon who committed embezzlement ten (10) years ago. On his employment application, Jones stated that he did not have any felony convictions and used another person's social security number. National did not seek a waiver to employ a convicted felon.
D Trustworthy Customs Broker Co. (Trustworthy) received $10,000.00 from Sally Doe, an importer of handblown glass figurines. Sally has designated Trustworthy to make payment for all imports over the course of a year, and to collect any refunds issued by CBP. Sally owes $4,000.00 in estimated duties for her most recent acquisition of figurines. Trustworthy remitted payment to CBP within 12 days of the figurines’ arrival at the Port of Long Beach.

Show the answer and explanation

Answer: A. John Smith Customs Brokerage (Smith) terminated Sally Johnson's (Johnson) employment. Johnson was listed in Smith's Automated Commercial Environment (ACE) portal account as the knowledgeable point of contact to be available to CBP during and outside of normal operating hours. Smith updated Johnson's employee record but did not designate a new knowledgeable point of contact in ACE. CBP has been unable to contact Smith for over six months.

The brokerage that let its ACE point of contact lapse and could not be reached for six months. 19 CFR 111.3(b) requires a broker under a national permit to designate a knowledgeable point of contact available during and outside normal hours and to keep that information current in ACE; 111.28(a)(12) lists the broker's communications and responsiveness to CBP as a supervision factor. Under the national permit there is no rule that every office have a licensed broker on site; supervisory visits are a factor (111.28(a)(7)). An employee's false statements are not held against a broker absent culpability (111.28(c)), and remitting deposited funds with the entry summary is timely payment. Source: 19 CFR 111.3(b), 111.28(a)(7), (a)(12), (c) (2023 ed., rev. 1 Apr 2023; unchanged in 2024 ed. and in eCFR as at 12 Oct 2026). CBP answer key: A. CBP's citation: 19 CFR 111.3(b); 19 CFR 111.28(a).

Common mistake

Offices without an on-site licensed broker sound like a violation, but that rule went with district permits; the national permit relies on supervision factors.

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John Rose has an individual customs broker license and a National Permit. Shady is importing eighteen (18) unmounted 1-carat diamonds worth $2,500.00 each for a total of $45,000.00 in his luggage. Shady is arriving from London, England, via private airplane. Shady intends to put the diamonds in rings to sell from his U.S.-based jewelry store. Rose obtains a power of attorney from Shady to be Shady’s broker, and Rose advises Shady that the diamonds do not need to be declared because the diamonds are absolutely duty free. Which statement below is TRUE with respect to any penalty that may be imposed under these circumstances?Number One Car Company (NOC Co.) is an existing importer whose account is not in frozen or void status with the CBP Office of Finance Revenue Division and whose account is assigned to the Automotive and Aerospace Center of Excellence and Expertise (A&A Center). NOC Co.’s broker is Jack Frost Customhouse Broker (Jack Frost). Jack Frost is licensed and has his National Permit through Los Angeles/Long Beach and his processing Center is the Electronics Center of Excellence and Expertise (Electronics Center). NOC Co. has advised Jack Frost that it is adopting an alternate name of NOC Co. as it has permission from its State of incorporation. Which of the following correctly states a method Jack Frost can use to notify CBP of NOC Co.'s adoption of an alternate name?A licensed individual customs broker files her triennial status report and pays the $100 fee through eCBP on Friday, February 26, 2027. CBP's website had urged brokers to file by the end of January. What is the status of her license?

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Original study material mapped to the public CBP exam categories; not a real test question.Independent. Not affiliated with or endorsed by U.S. Customs and Border Protection (CBP). Verify figures and rules against current guidance before relying on them.