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Broker Compliance

April 2019 — Question 1

A broker receives his license through the port of Miami. The broker has a district permit in Miami. The broker ceases transacting customs business in Miami, and opens his business in the district of Tampa. Which one is INCORRECT?

Why this answer

Under the edition tested, 19 CFR 111.19 drew a sharp line: district permit applications went to the director of the port where the broker would conduct business, but a national permit application was a letter addressed to CBP's Office of International Trade in Washington, DC, with the fees paid at the port through which the broker's license was delivered — here Miami, the licensing port. A broker therefore could not apply and pay for a national permit through Tampa, making D the incorrect statement. E is the tempting wrong pick, but the triennial status report properly went to the port through which the license was delivered, Miami. Watch for: Assuming the national permit is obtained through the broker's new port rather than headquarters and the licensing port.

Original CBLE Simulator explanation — the question and key above are CBP's; this analysis is ours. Verify against the current edition before relying on it in practice.

CBP's cited authority

§ 19CFR111.19(c)

Answer and citations as published in CBP's official answer key for the April 2019 examination.

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