CustomsBrokerLicenseExam

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April 2024, question 12

Broker Compliance · Broker licensing and duties

Which of the following statements is FALSE?

  1. A broker must transmit payment to the Government within five (5) working days after receipt from a client if the due date has passed.
  2. Records pertaining to the business of the clients serviced by customs brokers are to be considered confidential.
  3. Without exception, a broker who imports merchandise must not act as a broker for an importer who imports merchandise of the same general character as that imported by the broker.
  4. Each broker must exercise responsible supervision and control over the transaction of customs business.
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CBP's answer: C. C: Without exception, a broker who imports merchandise must not act as a broker for an importer who imports merchandise of the same general character as that imported by the broker.

CBP keyed C as the false statement. A broker who is also an importer may act for an importer of the same general kind of merchandise if the client has full knowledge of the facts, so the words 'without exception' make C wrong.

must not act as broker for an importer who imports merchandise of the same general character as that imported by the broker unless the client has full knowledge of the facts 19 CFR 111.31(c)

Search for: importer himself must not act as broker

CBP's key cites: 19 CFR 111.31(c)

Question and key from CBP's April 2024 exam and answer key. The walk-through is ours; quotes are from the pinned editions in the reference viewer (HTSUS 2026 Basic, 19 CFR 2025 edition).