October 2020 (AM) — Question 5
If a broker knows that a client has not complied with the law or has made an error, or omission from, any document, affidavit, or other paper which that law requires the client to execute, what should the broker do?
- AContinue to adhere to the contractual agreement between the broker and his/her client
- BImmediately discontinue his/her relationship with the client
- CContact CBP for guidance
- DAdvise the client promptly of the noncompliance✓ CBP's answer
- EPrepare a prior disclosure
Why this answer
The cited paragraph of 19 CFR 111.39 addresses exactly this situation: when a broker knows that a client has not complied with the law or has made an error in or omission from any document, affidavit, or paper the law requires, the broker's duty is to advise the client promptly of that noncompliance, error, or omission. Nothing in the section compels terminating the relationship, contacting CBP, or filing anything. The prior-disclosure option tempts because disclosure is the standard cure for entry errors, but that remedy belongs to the client after being advised, not to the broker acting unilaterally. Watch for: Jumping to a prior disclosure, which is the client's decision after being advised.
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 2020 (AM) examination.
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