CustomsBrokerLicenseExam

Home / Past exams / April 2025 / Question 6

April 2025, question 6

Broker Compliance · Broker licensing and duties

Which of the following is considered "customs business?"

  1. The preparation, and activities relating to the preparation, of documents in any format and the electronic transmission of documents intended to be filed with CBP in furtherance of any other customs business activity.
  2. The processing of applications for a broker's license or national permit for an individual, partnership, association, or corporation.
  3. Those activities performed by a business entity to ensure that documents for a related business entity are prepared using reasonable care.
  4. Any activity related to dispatching shipments in foreign commerce between the United States and its territories and foreign countries.
Show the answer and walk-through

CBP's answer: A. A: The preparation, and activities relating to the preparation, of documents in any format and the electronic transmission of documents intended to be filed with CBP in furtherance of any other customs business activity.

Section 111.1 defines customs business to include the preparation of documents, and activities relating to that preparation, intended to be filed with CBP, and electronic transmission of them. Processing license applications is a CBP function, corporate compliance activity is expressly excluded, and dispatching shipments is the definition of freight forwarder.

also includes the preparation, and activities relating to the preparation, of documents in any format and the electronic transmission of documents and parts of documents intended to be filed with CBP 19 CFR 111.1

Search for: customs business means

CBP's key cites: 19 CFR 111.1

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).