Skip to content

Broker Compliance

October 2020 (PM) — Question 5

All brokers must provide each active client with a written Notice to client of method of payment. An active client means:

Why this answer

The definition comes from the notice-to-client-of-method-of-payment rule in 19 CFR 111.29(b) as tested. An active client is one from whom the broker has obtained a power of attorney and for whom the broker has transacted customs business on at least two occasions within the 12-month period preceding notification. Option D reproduces both required elements with the correct counts, while every distractor alters exactly one variable: dropping the power-of-attorney element, cutting the occasions to one, shrinking the window to six months, or stretching it to thirty-six. Option A is the strongest lure because it is accurate except that it silently omits the power of attorney. Watch for: Overlooking the power-of-attorney element or misremembering two occasions within twelve months.

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

§ 19 CFR § 111.29(b)(2)(ii)

Answer and citations as published in CBP's official answer key for the October 2020 (PM) examination.

Reading answers is easy. The exam is 80 of these in 4.5 hours.

Pass rates run 12–30%. Find out in 15 minutes whether you'd clear the 75% line today — free, no signup.