CustomsBrokerLicenseExam

Home / Past exams / October 2024 / Question 8

October 2024, question 8

Broker Compliance · Broker licensing and duties

Ms. Crimson and Mr. Blue are both individually licensed customs brokers. They form a Limited Liability Company (LLC) and obtain an organizational customs broker license as an association. The LLC hires Ms. Yellow, who is also a licensed customs broker. Crimson is the majority owner of the LLC. Blue is named as the license qualifier. Yellow is named as the permit qualifier. Crimson, Blue and Yellow are all officers of the LLC. The LLC surrenders its organizational license and permit to the processing Center and terminates the brokerage business. Upon termination, who is responsible for notifying CBP in writing of the name, address, email address, and telephone number of the party having legal custody of the LLC's brokerage records?

  1. Only Blue, as the license qualifier, is required to notify CBP.
  2. Only Crimson, as the majority owner, is required to notify CBP.
  3. Only Yellow, as the permit qualifier, is required to notify CBP.
  4. Crimson, Blue, and Yellow as individually licensed brokers and officers of the LLC are all required to notify CBP.
Show the answer and walk-through

CBP's answer: D. D: Crimson, Blue, and Yellow as individually licensed brokers and officers of the LLC are all required to notify CBP.

Section 111.30(e)(3) requires each association or corporate officer who holds an individual broker's license to notify CBP when the brokerage business permanently terminates. Crimson, Blue and Yellow are all licensed officers, so all three must notify (D), whatever their license qualifier, permit qualifier or ownership roles.

Each association or corporate officer who holds an individual broker's license, upon the permanent termination of an association or corporate brokerage business. 19 CFR 111.30(e)(3)

Search for: permanent termination of an association or corporate brokerage business

CBP's key cites: 19 CFR 111.30(e)(3)

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).