Congratulations to Chris Lindstrand, Syracuse Import Supervisor, and Carla Torrillo, Rochester Import Coordinator, for recently passing the Customs broker license exam.
Passing the broker exam is no small feat. It’s actually easier to pass the bar exam than the broker exam!
National passing rates
Medical license exam: 94%
Bar exam: 69%
Customs broker exam: 29%
Think you have what it takes to pass the broker exam? Test yourself with these questions from the October 2012 Custom broker exam.
Cotton napkins were cut, sewn, and finished in Vietnam. The cotton fabric was woven in China. The sewing thread was made in Taiwan. The finished napkins transited Singapore or their way to the United States, where they were entered for consumption. What is the country of origin of the napkins?
E. United States
Which one of the following nonresident principals may import their merchandise into the U.S. Customs territory?
A. A Brazilian corporation importing electronic generators through the port of Laredo, Texas.
B. A Cuban exile, residing in Dominican Republic and importing cigars (of Cuban origin) into the district limits of Miami, Florida.
C. A U.S. corporation that is incorporated in the state of Delaware, importing automobile parts.
D. A German corporation that has provided to their agent (a Customs broker) a power of attorney absent the service of process statement.
E. A Chinese vendor, a legal partnership, importing medical supplies into the U.S. Virgin Islands.
The U.S. Air Force has developed a new, secret Stealth aircraft, XP-070. It is being sent to an undisclosed location in Germany for extensive testing, evaluation, and modification. Upon arrival in Germany, the new Stealth aircraft engine did not fire up and the foreign agency refused to take possession. The carrier shipped it back to the United States. to the U.S. Air Force. Entry was made in the port of Buffalo, and the U.S. Air Force filed all the necessary paperwork to clear the shipment. Which of the following is a true statement?
A. The U.S. Air Force should pay duty on the Stealth aircraft because the merchandise is not a civil aircraft including parts, components, and subassemblies.
B. The U.S. Air Force should pay duty on XP-070 because it is subject to duty, taxes, and fees upon its arrival in the U.S.
C. The U.S. Air Force should not pay duty because even though the Stealth XP-070 is an aircraft, the Air Force is part of the U.S Government and does not pay duty to itself.
D. The U.S. Air Force should not pay duty because the Stealth XP-070 is exempt from duty.
E. The U.S. Air Force should pay duty, taxes and fees on Stealth XP-070, and subsequently file a protest because the merchandise is not subject to any exemptions in the Harmonized Tariff Schedule of the United States.
BMW USA imports a purchase of 2,500 brand new 2013 X5s invoiced at $40,000 each, ex-factory, from its affiliated parent company, BMW of Germany. BMW of Germany normally charges an additional $100 each for the X5s, however, they owed BMW USA $250,000 which was paid on a previous shipment and have deducted this from the invoice price. The related party transaction does not influence the price paid to the parent company. The seller requires the buyer not to sell or exhibit the merchandise before the model year. Invoice values are also listed in the following amounts: ocean freight $2,000, and marine insurance $1,850. What is the transaction value of the merchandise? A $76,150,000