May 2024 — Question 3
ZXY Importer (ZXY) is switching customs brokerages. ZXY is terminating its relationship with Slick Customs Brokerage Co. (Slick). The power of attorney contract between ZXY and Slick was granted for an unlimited time period. Which of the following parings correctly indicates who may revoke the power of attorney between ZXY as the principal and Slick as the agent?
- APrincipal Yes, Agent No
- BPrincipal No, Agent Yes
- CPrincipal No, Agent No
- DPrincipal Yes, Agent Yes✓ CBP's answer
Why this answer
The cited regulation makes every customs power of attorney subject to revocation at any time upon written notice given to and received by CBP, and it places no restriction on which party may end the agency. Consistent with ordinary agency principles, the importer as principal may revoke the authority it granted, and the broker as agent may likewise withdraw from the representation by giving the required notice, particularly here where the grant ran for an unlimited period rather than a fixed term. CBP accordingly keyed yes for both parties. Option A tempts by assuming only the grantor can undo a grant, but nothing in the regulation binds an agent to serve indefinitely. Watch for: Assuming only the principal who granted the power may end the agency relationship.
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 May 2024 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.