CustomsBrokerLicenseExam

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April 2025, question 13

Broker Compliance · Broker licensing and duties

Which of the following statements is legally TRUE regarding a customs broker conducting "customs business?”

  1. A customs broker may outsource the preparation of entries to a company located in India, but the entry must be transmitted by the broker.
  2. A customs broker must designate a knowledgeable point of contact to be available to CBP during (but not outside of) normal business hours to respond to customs business issues.
  3. A customs broker residing in the U.S. but on vacation in Europe may transmit entries as long as they have a secure Internet connection.
  4. A customs broker may hire a remote employee living in Puerto Rico to help determine classification of merchandise.
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CBP's answer: D. D: A customs broker may hire a remote employee living in Puerto Rico to help determine classification of merchandise.

Section 111.3(a) requires customs business to be conducted within the customs territory, and 101.1 defines that to include the States, D.C. and Puerto Rico. A remote employee in Puerto Rico can therefore help determine classification (D). Outsourcing to India or working from Europe is outside the territory, and 111.3(b) requires a point of contact during and outside normal hours, so B is wrong.

Customs business must be conducted within the customs territory of the United States as defined in § 101.1 of this chapter. 19 CFR 111.3(a)
“Customs territory of the United States” includes only the States, the District of Columbia, and Puerto Rico. 19 CFR 101.1

Search for: customs territory of the United States

CBP's key cites: 19 CFR 101.1; 19 CFR 111.3(a); 19 CFR 111.3(b)

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).