October 2021 — Question 80
Juan Hembra is a customs broker at ABC Brokers. He also owns and operates Hembra Hats, a brick- and-mortar store in Miami that imports and sells “Panama” hats from Ecuador. Before becoming a customs broker and importer, Juan worked for 10 years as a Border Patrol Agent for U.S. Customs and Border Protection, stationed on the southern border with Mexico. Which of the following situations would create a conflict of interest for Juan as a broker?
- APanama Pete, a California company that imports and sells Panama hats exclusively through an online store, hires Juan as their broker. Panama Pete knows about Hembra Hats and hires Juan specifically because of his Panama hat expertise and extensive experience importing them into the United States.
- BJuan files an entry for his sister Julia when she imports several cases of Canadian maple syrup.
- CDominique, another broker at ABC who also once worked as a Border Patrol Agent with Juan, helps Juan file Julia’s entry of Canadian maple syrup. Juan shares his fees with Dominique.
- DLeo’s Lids, a New York company that imports and sells baseball caps to airport shops, hires Juan as their broker. Leo’s Lids has no knowledge of Hembra Hats and Juan does not tell them about his business.✓ CBP's answer
- EJuan files an entry for Banana Barn, which imports bananas from Ecuador.
CBP's cited authority
§ 19 CFR § 111.31(c) Reference Materials: • Harmonized Tariff Schedule of the United States (2020 Basic Edition§ No Supplements) • Title 19§ Code of Federal Regulations (2020 Revised as of April 1§ 2020 (Parts 1 to 199) • ACE Entry Summary 2.4a • Right to Make Entry Directive 3530-002A • Business Rules§ Process Document (Trade-External) Ace Entry Summary Version 10.50§ Sections 1-12
Answer and citations as published in CBP's official answer key for the October 2021 examination.
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