CustomsBrokerLicenseExam

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October 2024, question 7

Broker Compliance · Penalties, recordkeeping and prior disclosure

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 The broker terminated Company Z as a client 10 months before the summons’ issuance and the POA was revoked.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?

  1. Provide CBP with the entry files requested because the broker is legally obligated to make such records available to CBP.
  2. Return the summons to CBP because it must be signed by an auditor or special agent to be legally effective.
  3. Forward the summons to Company Z and notify the Center Director that it has been forwarded to the party obligated to respond to the summons.
  4. No response to the summons is required because the record retention period for Company Z's entry filed expired upon the termination of the broker-client relationship.
Show the answer and walk-through

CBP's answer: A. A: Provide CBP with the entry files requested because the broker is legally obligated to make such records available to CBP.

A summons may be issued by a Center director and may be served on a person who has possession, custody or care of records of the importation. The broker still holds the entry records, because broker records are kept at least 5 years after the date of entry, so the broker must produce them (A). Passing the summons to the client is not an option under the regulation.

Has possession, custody or care of records relating to an importation or other activity described in paragraph (a)(1) through (a)(4) of this section 19 CFR 163.7(a)(6)
must be retained for at least 5 years after the date of entry 19 CFR 111.23(b)

Search for: summons records possession custody or care

CBP's key cites: 19 CFR 163.7(a)

Question and key from CBP's October 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).