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April 2024, question 18
Practical Exercise · Broker licensing and duties
Baltimore Quick Printers is an active client of Fast Broker LLC with a power of attorney executed on May 1, 2020. Please refer to the provided broker's invoice for the "NOTICE TO CLIENT OF METHOD OF PAYMENT" (Notice) language. If the invoice did not contain this Notice, which of the statement(s) is/are correct regarding the broker's obligation to provide active clients this language? I. The notice is not required by Customs regulations. II. The notice is required on every broker invoice to active clients under the Customs regulations. III. The notice is required on or attached to the power of attorney between the broker and the client under the Customs regulations. IV. The notice is required in writing at least once per 12-month period under the Customs regulations.
- I.
- II.
- II. And IV.
- III. And IV
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CBP's answer: D. D: III. And IV
Section 111.29(b)(2) says the written notice must be on or attached to any power of attorney the broker gives a client, and must go to each active client at least once in every 12-month period. It is not required on every invoice, so III and IV are correct (D).
On, or attached to, any power of attorney provided by the broker to a client for execution on or after September 27, 1982 19 CFR 111.29(b)(2)(i)
at least once at any time within each 12-month period after that date 19 CFR 111.29(b)(2)(ii)
Search for: notification of method of payment
CBP's key cites: 19 CFR 111.29(b)(2)
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).