April 2023 — Question 4

Which of the following statements is TRUE? As indicated on the invoice, 10,000 kilograms of the cheddar cheese needs to be aged for six years. Cheese needs to remain in the same climate for the entirety of its aging process and the warehouse building has separate areas for bonded, foreign trade zone, and domestic merchandise.

• ABefore the expiration of the fifth year from the date of importation, the broker can file a request for extension with the Center director showing good cause as to why the merchandise needs to remain in the warehouse for an additional year.✓ CBP's answer
• BBefore the expiration of the fifth year from the date of importation, the broker can file a warehouse withdrawal entry, pay any duties, taxes, and fees if there is insufficient quota remaining, and enter the cheese as privileged foreign merchandise to the foreign trade zone area of the warehouse for the sixth year of aging.
• CBefore the expiration of the fifth year from the date of importation, the broker can file a warehouse withdrawal entry, pay any duties, taxes, and fees if there is insufficient quota remaining, and leave the cheese in bonded area of the warehouse for the sixth year of aging.
• DBefore the expiration of the fifth year from the date of importation, the broker can file a CBP Form 7512 Transportation Entry to move the cheese from the bonded merchandise area of the warehouse to the domestic merchandise area of the warehouse for the sixth year of aging.
• EBefore the expiration of the fifth year from the date of importation, the broker can file a rewarehouse entry to allow the cheese to remain in the bonded merchandise area for the sixth year under a new entry number.