CBLE Official CBP exam (October 2024) question: entry documents for a shipment on behalf

CBLEOfficial CBP exam (October 2024)

While preparing the entry documents for a shipment on behalf of its client Angel Industries (Angel), Shady CHB (Shady) sees that the insurance value for the shipment is significantly lower than the commercial invoice value. In response to Shady's inquiry concerning the differences, Angel explains that there are two commercial invoices for the shipment. The first commercial invoice is the real invoice from the shipper which shows the lower amount that is used for insurance purposes. The second commercial invoice is created by Angel at a higher amount and is used as the invoice for calculating Customs value and upon which it pays the duties, taxes, and fees. Angel explains that it uses the two invoice system in its accounting records to reduce its reportable profit for income tax purposes. Shady's attorney advises Shady to terminate its relationship with Angel because the “double invoice scheme” is fraudulent. Of the choices below, what is Shady's best next step?

A Shady documents the double invoice scheme and immediately terminates its relationship with Angel and reports to CBP the client's name, date of termination, and the reason for the termination.
B Shady will file the entry using the lower, correct value and will advise Angel that they will only file entry in the future using the actual invoice from the shipper.
C Shady will file the entry at the value requested by Angel and will keep Angel as a client because the potential fraud does not involve CBP.
D Shady will file the entry as requested by Angel because it is not fraud to pay more in duties, taxes, and fees than actually owed.

Show the answer and explanation

Answer: A. Shady documents the double invoice scheme and immediately terminates its relationship with Angel and reports to CBP the client's name, date of termination, and the reason for the termination.

Document the scheme, end the relationship and report it to CBP. Under 19 CFR 111.32 a broker must not file or assist in filing any document known to be false, and must document and report to CBP when it separates from or cancels representation of a client because it determined the client is intentionally trying to use the broker to defraud the U.S. Government; the report must give the client name, date of separation or cancellation, and reason. Filing at either value continues to serve a client running a double-invoice fraud, and the fact that CBP is overpaid does not make the false invoice lawful: a false statement on an entry is still a violation the broker cannot knowingly assist (111.53(c)-(d)). Source: 19 CFR 111.32, 111.53(c)-(d) (2023 ed.; unchanged in 2024 ed. and in eCFR as at 7 Oct 2026). CBP answer key: A. CBP's citation: 19 CFR 111.32; 19 CFR 111.53.

Common mistake

Overpaying duty looks harmless to CBP, but the broker would still be filing a knowingly false invoice for a client engaged in fraud.

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An individual's customs broker license is suspended by operation of law for failure to file a triennial status report and pay the fee, and the individual has received the notice of suspension as prescribed by regulation. When will the license be revoked by operation of law if the individual fails to file the report and pay the fee?A duly licensed customs broker was named in and properly served a U.S CBP summons signed by a Center Director. The summons requires the broker to provide CBP with documentation for 10 entries the broker filed on behalf of Company Z within the last three years so as to help CBP ascertain the correctness of the 10 entries. The broker terminated Company Z as a client 10 months before the summons’ issuance and the POA was revoked. Company Z has not provided the broker with specific written instructions regarding responding to a summons within its now revoked power of attorney document. How must the broker respond to the Customs’ summons?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.