CustomsBrokerLicenseExam

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October 2026, question 10

Broker Compliance · Broker licensing and duties

Which ONE of the following actions is NOT grounds for the suspension or revocation of a broker's license?

  1. A broker knowingly made a misleading statement on his or her license application.
  2. A broker was convicted of a felony involving embezzlement.
  3. A broker knowingly works with a client whose broker license was cancelled “with prejudice.”
  4. A broker knowingly employed a felon without CBP approval.
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CBP's answer: C. C: A broker knowingly works with a client whose broker license was cancelled “with prejudice.”

The question asks which action is NOT grounds. Section 111.53 lists a misleading application statement (a), a felony conviction involving the listed matters (b), and knowingly employing a felon without written approval (e). Working with a client whose license was cancelled with prejudice is allowed by the client exception in 111.42(b), so it is not grounds, and C is the answer.

Nothing in this section will prohibit a broker from transacting customs business on behalf of a bona fide importer 19 CFR 111.42(b)
The broker has knowingly employed, or continues to employ, any person who has been convicted of a felony, without written approval 19 CFR 111.53

Search for: Grounds for suspension or revocation of license or permit

CBP's key cites: 19 CFR 111.53

Question and key from CBP's October 2026 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).