October 2019 — Question 7
Which statement is FALSE?
- AEach broker must designate a knowledgeable company employee to be the contact for Customs for broker-wide customs business and financial recordkeeping requirements.
- BOther than power of attorney, records must be retained for at least 5 years after the date of entry.
- CThe status report must be accompanied by a fee of $100 to defray the cost of administering the reporting requirements.
- DA person must obtain a license to transact customs business as a broker.
- EA application for a broker’s license must be submitted in triplicate to the director of the port where the applicant intends to be business.✓ CBP's answer
Why this answer
Under the edition tested, 19 CFR 111.12(a) required a license application to be submitted in duplicate to the director of the port where the applicant intends to do business, so E's "triplicate" misstates the rule and is the false statement. The other options track the regulations of the period: brokers designated a knowledgeable employee as the CBP contact point, records other than powers of attorney had to be kept at least five years after entry, the triennial status report carried a $100 fee, and a license is required to transact customs business as a broker. C tempts candidates who doubt the fee amount, but $100 was correct. Watch for: Doubting the $100 status-report fee instead of catching triplicate for duplicate.
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
Answer and citations as published in CBP's official answer key for the October 2019 examination.
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