Home Discussion Broker Compliance Calculation ofpermit qualifier dates question 10 quiz 7

Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • Douglas Meadows
    Participant
    Post count: 25

    I don’t get this answer based on the 180 day rule to replace the local permit qualifier. Can you please explain?

    10. Question1 point
    BROKER hires EMPLOYEE A on January 3, 2005, to qualify BROKER’s local permit. During his lunch hour on March 1, 2005, EMPLOYEE A dies. On June 1, 2005, BROKER hires EMPLOYEE B to qualify the local permit, but he quits on June 10, 2005. BROKER must hire a new permit qualifier by _____.

    A. September 29, 2005
    B. July 2, 2005
    C. August 29, 2005
    D. November 27, 2005
    E. December 6, 2005
    Incorrect. Correct choice is: C
    Explanation: 19 CFR 111.45(b); 171, Appendix C, Section XI, C 8 a

    admin
    Keymaster
    Post count: 85

    § 111.45(b) Permit. If a broker who has been granted a permit for an additional district fails, for any continuous period of 180 days, to employ within that district … at least one person who holds a valid individual broker’s license, that failure will, … result in the revocation of the permit by operation of law.

    19 CFR Appendix C to Part 171
    XI. Section 1641(B)(4) – Failure of a Licensed Broker To Exercise Responsible Supervision and Control Over the Customs Business That it Conducts
    C. The following factors shall be indicative of a lack of supervision or lack of working knowledge of Customs procedures …:
    8. Employing a licensed individual for a minimal number of days each 120- or 180-day period (see sections 1641(b)(5) and 1641(c)(3) so as to avoid violation of the statute.
    a. For purposes of imposition of penalties under this subsection, a minimal number of days shall be 10 working days for each 120-day period or 15 working days for each 180-day period.

    A broker must not fail, for any continuous period of 180 days, to employ within that district … at least one person who holds a valid individual broker’s license.
    Here EMPLOYEE A was hired on January 3, 2005, to qualify BROKER’s local permit but he died on March 1, 2005. He was employed for more than the minimal number of days of 15 working days for each 180-day period. So the broker is now required to fill the vacancy and employ another licensed individual within 180 days from March 1, 2005.

    On June 1, 2005, BROKER hired EMPLOYEE B to qualify the local permit, but he quits on June 10, 2005. Since EMPLOYEE B worked for less than the minimally required period of 15 days, this is indicative of a lack of supervision and is not counted towards fulfillment of the employment of a licensed individual within the 180 days limit. Therefore, the 180 days limit continues to start from March 1, 2005.

    As per the calendar, 180 days after march 1, 2005 is Sunday August 28, 2005. Since a licensed individual has to be employed by the broker within a maximum of 180 days, and August 28 is a holiday (Sunday), the broker has to employ a new licensed individual latest from August 29, 2005 which is answer choice C.

Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.