April 2018 — Question 8
Which of the following is NOT a factor that is indicative of a lack of supervision or lack of working knowledge of customs procedures for which CBP may issue a $5,000 penalty against a broker?
- AA high rate of late filing liquidated damages cases when compared with other brokers in the permitted district
- BA high rate of entry rejections when compared with other brokers in a permitted district
- CFailure to settle liquidated damages claims in a timely manner
- DAn inordinate number of entries for which free entry is claimed with documentation✓ CBP's answer
- EA high number of missing entry summary documents when compared with other brokers in the permitted district Category II – Practical Exercise Use the below-identified commercial invoice to answer questions 9 through 13. Shipper/Exporter No. and Date of Invoice Blue Crest Exports, Ltd. US0001E February 14, 2017 Bldg. 45, No 8002 Shennan Rd. Futian District, Shenzhen, China Marks and No. of Pkgs. Subject to Antidumping Duty A-570-831 at For Account and Risk of Messers 0.06 $/kg. Rosa’s Italian Kitchen 5423 Mission L/C Issuing Bank S. San Francisco, CA 45682 Notify Party James Brokers, Inc. Remarks 658 Adams Plaza DDP San Francisco Dallas, TX 78045 P/O No.: OMAL587236 Port of Lading Final Destination Chinese Origin Qingdao, China Oakland, CA Carrier Departure on or about COSCO February 14, 2017 Agricultural Farm ….. Description of Goods Quantity Unit Price Amount Fresh whole chilled garlic bulbs packed in water. Shipped in bulk 25,719 kgs. 49,167 USD TOTAL $49,167 Master Bill: 001-63324833 House Bill: COSC6676406 BLUE CREST EXPORTS, LTD. Schenzhen, China
CBP's cited authority
§ Appendix C Part 171§ Section XI (B)(4)§ Mitigation of Penalties for Violations of 19 U.S.C. 1641
Answer and citations as published in CBP's official answer key for the April 2018 examination.
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