Home Discussion Broker Compliance How does the 60 days from notice formulate this answer below?

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  • Douglas Meadows
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    The qualifying officer would have had is license been suspended by the end of Feb ( 28 or 29) by 9 CFR 111.30(d)(4). That gives the corporation 120 days to replace the qualifier license. That puts us around May 30. How could the correct answer be June 29 as stated in the quiz?

    18. Question1 point
    January 1, 1970, an individual obtained his Customs broker’s license. A U.S. corporate Customs broker employs the licensed individual as the corporate license qualifier on May 1, 2000. February 27, 2003, CBP receives the corporation’s triennial report and applicable fees. March 15, 2003, CBP notifies the individual licensed broker of the requirements for filing the status report. April 5, 2003, due to a pending retirement scheduled for July 4, 2003, the individual licensed broker responds to CBP correspondence and notifies CBP that he will not be filing his individual triennial report. June 1, 2004, the corporate Customs broker provides written notification to CBP that it intends to dissolve its corporate status, liquidate all its assets, and cancel its license without prejudice September 1, 2003. What is the last date that the corporate Customs broker may file an entry and engage in “customs business?”

    A. September 1, 2003
    B. July 4, 2003
    C. July 13, 2003
    D. November 1, 2003
    E. June 29, 2003
    Correct. Correct choice is: E
    Explanation: 19 CFR 111.30(d)(4)

    admin
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    § 111.45 Revocation by operation of law.
    (a) License. If a broker that is a partnership, association, or corporation fails to have, during any continuous period of 120 days, at least one member of the partnership or at least one officer of the association or corporation who holds a valid individual broker’s license, that failure will, in addition to any other sanction that may be imposed under this part, result in the revocation by operation of law of the license and any permits issued to the partnership, association, or corporation.

    § 111.30(d) Status report –

    (1) General. Each broker must file a written status report with Customs on February 1, 1985, and on February 1 of each third year after that date. … A report received during the month of February will be considered filed timely.

    (4) Failure to file timely. If a broker fails to file the report required under paragraph (d)(1) of this section by March 1 of the reporting year, the broker’s license is suspended by operation of law on that date. By March 31 of the reporting year, the port director will transmit written notice of the suspension to the broker by certified mail, return receipt requested, at the address reflected in Customs records. If the broker files the required report and pays the required fee within 60 calendar days of the date of the notice of suspension, the license will be reinstated. If the broker does not file the required report within that 60-day period, the broker’s license is revoked by operation of law without prejudice to the filing of an application for a new license.

    Here a U.S. corporate Customs broker employs a licensed individual as the corporate license qualifier. The individual licensed broker responds to CBP correspondence and notifies CBP that he will not be filing his individual triennial report. Since he failed to file the report by March 1 of the reporting year, the licensed individual’s broker’s license is suspended by operation of law on March 1, 2003. That gives the corporation 120 days to replace the qualifier license. 120 days after March 1, 2003 is June 29, 2003 which is answer choice E.

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