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April 2025, question 12
Broker Compliance · Broker licensing and duties
A customs broker receives payment for duties from a client after the due date. The payment did not include payment for the broker's services. What must the broker do?
- Return the payment to the client within 5 working days of receipt and file a formal complaint with CBP.
- Advise the client that the duty payment will not be transmitted to CBP until the payment for the broker's services is received.
- Transmit the duty payment to CBP within 5 working days of receipt by the broker.
- Deduct their service fee from the amount of the payment, transmit the remaining amount to CBP, and notify the center director of the situation.
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CBP's answer: C. C: Transmit the duty payment to CBP within 5 working days of receipt by the broker.
Section 111.29(a) says payments a broker receives from a client after the due date must be transmitted to the Government within 5 working days of receipt. The broker may not hold the duty payment hostage for its own fee or deduct it.
Payments received by a broker from a client after the due date must be transmitted to the Government within 5 working days from receipt by the broker. 19 CFR 111.29(a)
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CBP's key cites: 19 CFR 111.29(a)
Question and key from CBP's April 2025 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).