October 2020 (PM) — Question 8
Which of the following statements is FALSE?
- AIf a broker fails to file a written status report required by March 1 of the reporting year, the broker's license is suspended by operation of law on that date.
- BIn the absence of culpability by the broker, Customs will not hold the broker responsible for the accuracy of any information that is provided to the broker by the employee regarding employee information including current home address, social security, and place of birth.
- CA written approval from the Assistant Commissioner is mandatory for employment of any person employed by the broker who has been convicted of a felony.
- DWritten notices for change of address in the status report is required even if the individual broker is not actively engaged in transacting business as a broker.
- EA former employee turned broker can transact customs business on behalf of a bona fide importer or exporter who may be notoriously disreputable or whose broker license is under suspension or was revoked and can represent a client before the Department of Homeland Security (DHS) in any matter to which the broker gave personal consideration or gained knowledge of the facts while in U.S. government service. Category II – Entry✓ CBP's answer
Why this answer
Option E welds two propositions together, and the second sinks it. Under 19 CFR 111.42 as tested, a broker genuinely may transact customs business for a bona fide importer or exporter who is notoriously disreputable or whose broker license was suspended or revoked — that clause is true and serves as the bait. But 19 CFR 111.31(a) prohibits a broker formerly in U.S. Government service from representing a client before DHS in any matter to which the broker gave personal consideration or gained knowledge of the facts while in government service. Because the statement asserts both are permitted, it is false; the remaining options accurately restate their cited rules. Watch for: Accepting the whole statement because its notoriously-disreputable-client clause is genuinely true.
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 (PM) examination.
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