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The format is similar in the official exam and the question paper will identify the category and provide several questions related to that category below it. Each category may have several questions under it. For instance some of the categories in the April 2022 exam were as follows:

Category I – Automated Commercial Environment (ACE) Questions 1 – 3
Category II – Foreign Trade Zone (FTZ)/Warehouse Questions 4 – 10
Category III – Marking Questions 11 – 13

Examples of question formats under each category are as follows:

Category II – Foreign Trade Zone (FTZ)/Warehouse
4. The operator of a FTZ shall record all shortages and overages as required on which document?
A. An annual reconciliation report
B. A blanket application form for admission of merchandise
C. CBP Form 214
D. CBP Form 301
E. CBP Form 214-A

5. Which CBP Form is required to admit merchandise into the Foreign Trade Zone (FTZ)?
A. CBP Form 214
B. CBP Form 3461
C. CBP Form 3495
D. CBP Form 6043
E. CBP Form 7501

We are continuously adding new tests but it takes some time to do the data entry and checking on the software. Right now we have added tests up to April 2022 exam and there are 28 full length online old practice exams on the site as of Oct 11, 2022.

§ 18.12 Entry at port of destination.
(a) Arrival procedures. Merchandise received under an immediate transportation entry at the port of destination may be admitted to a FTZ, entered into a bonded warehouse, entered for consumption, transportation and exportation, immediate exportation, immediate transportation, or any other form of entry, within 15 calendar days from the date of arrival at the port of destination and is subject to all the conditions pertaining to merchandise entered at a port of first arrival.

However, here the merchandise has been in General Order for over seven months from the date of original importation. All the options A to E are permissible only within 15 calendar days from the date of arrival at the port of destination but that time limit has passed here. Therefore, we need to look at the provisions of §127.2.

§ 127.2 Withdrawal from general order for entry or exportation.
(a) Exportation within 6 months from date of importation. Merchandise in general order may be exported without examination or appraisement if the merchandise is delivered to the exporting carrier within 6 months from the date of importation. This merchandise may be entered within 6 months from date of importation for immediate transportation to any port of entry designated by the consignee.

(b) After expiration of 6 months from date of importation. Entry for immediate transportation shall be permitted after the expiration of the 6-month period only for the purpose of filing an entry for consumption at the port of destination.

In terms of § 127.2(b) since the merchandise has been in General Order for over seven months from the date of original importation, entry for immediate transportation shall be permitted … only for the purpose of filing an entry for consumption at the port of destination.

Therefore B is the correct answer.

Prohibited means the item is forbidden by law to enter the United States. Examples of prohibited items are dangerous toys, cars that don’t protect their occupants in a crash, bush meat, or illegal substances like absinthe and Rohypnol. Restricted means that special licenses or permits are required from a federal agency before the item is allowed to enter the United States. Examples of restricted items include firearms, certain fruits and vegetables, animal products, animal by products, and some animals.

Activity 1 of the Attachment to Directive 3510-004 lists certain categories of imported merchandise where the bond will be executed in an amount which is not less than three times the total entered value of the merchandise. Para 1 lists 1. MERCHANDISE SUBJECT TO OTHER AGENCY REQUIREMENTS WHERE FAILURE TO REDELIVER COULD POSE A THREAT TO THE PUBLIC HEALTH AND SAFETY

These are restricted items where special licenses or permits are required from a federal agency before the item is allowed to enter the United States and therefore for these items the bond will be required to be executed in an amount which is not less than three times the total entered value of the merchandise.

For the October 2022 US Customs Broker License Exam (CBLE), the prescribed reference material includes the Harmonized Tariff Schedule of the United States (Basic Edition 2021). You can purchase a print copy from the government book store and other sources but make sure you have the 2021 Basic Edition for the October 2022 CBLE.

§ 152.103(4) Rebate. Any rebate of, or other decrease in, the price actually paid or payable made or otherwise effected between the buyer and seller after the date of importation of the merchandise will be disregarded in determining the transaction value under § 152.103(b).

Answer choice C would be the correct answer in terms of § 152.103(4) since a rebate would be a downward adjustment of the price, and such rebates are disregarded in determining transaction value if made after the date of importation.

It may also be noted that § 152.103(b) refers to additions to price actually paid or payable.
(1) The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts equal to:
…
(v) The proceeds of any subsequent resale, disposal, or use of the imported merchandise that accrue, directly or indirectly, to the seller.

§ 152.103 Transaction value.
…
(d) Assist. If the value of an assist is to be added to the price actually paid or payable, or to be used as a component of computed value, the Center director shall determine the value of the assist and apportion that value to the price of the imported merchandise in the following manner:

(1) If the assist consist of materials, components, parts, or similar items incorporated in the imported merchandise, or items consumed in the production of the imported merchandise, acquired by the buyer from an unrelated seller, the value of the assist is the cost of its acquisition. If the assist were produced by the buyer or a person related to the buyer, its value would be the cost of its production. In either case, the value of the assist would include transportation costs to the place of production.

(2) If the assist consists of tools, dies, molds, or similar items used in the production of the imported merchandise, acquired by the buyer from an unrelated seller, the value of the assist is the cost of its acquisition. If the assist were produced by the buyer or a person related to the buyer, its value would be cost of its production. If the assist has been used previously by the buyer, regardless of whether it had been acquired or produced by him, the original cost of acquisition or production would be adjusted downward to reflect its use before its value could be determined. If the assist were leased by the buyer from an unrelated seller, the value of the assist would be the cost of the lease. In either case, the value of the assist would include transportation costs to the place of production. Repairs or modifications to an assist may increase its value.

Example 1.
A U.S. importer supplied detailed designs to the foreign producer. These designs were necessary to manufacture the merchandise. The U.S. importer bought the designs from an engineering company in the U.S. for submission to his foreign supplier.
Should the appraised value of the merchandise include the value of the assist?

No, design work undertaken in the U.S. may not be added to the price actually paid or payable.

Example 2.
A U.S. importer supplied molds free of charge to the foreign shipper. The molds were necessary to manufacture merchandise for the U.S. importer. The U.S. importer had some of the molds manufactured by a U.S. company and others manufactured in a third country.
Should the appraised value of the merchandise include the value of the molds?

Yes. It is an addition required to be made to transaction value.
(e) Apportionment.

(1) The apportionment of the value of assists to imported merchandise will be made in a reasonable manner appropriate to the circumstances and in accordance with generally accepted accounting principles. The method of apportionment actually accepted by Customs will depend upon the documentation submitted by the importer. If the entire anticipated production using the assist is for exportation to the United States, the total value may be apportioned over (i) the first shipment, if the importer wishes to pay duty on the entire value at once, (ii) the number of units produced up to the time of the first shipment, or (iii) the entire anticipated production. In addition to these three methods, the importer may request some other method of apportionment in accordance with generally accepted accounting principles. If the anticipated production is only partially for exportation to the United States, or if the assist is used in several countries, the method of apportionment will depend upon the documentation submitted by the importer.

(2) Interpretative note. An importer provides the producer with a mold to be used in the production of the imported merchandise and contracts to buy 10,000 units. By the time of arrival of the first shipment of 1,000 units, the producer has already produced 4,000 units. The importer may request Customs to apportion the value of the mold over 1,000, 4,000, 10,000 units, or any other figure which is in accordance with generally accepted accounting principles.

§ 152.102(a)(3) The following apply in determining the value of assists …
(i) The value of an assist that is available in the public domain is the cost of obtaining copies of the assist.

Here, similar die cast tools are available for purchase at $10,000, so the die cast tools are available in the public domain for a price of $10,000 only. Therefore this is the price to be applied in determining the value of the assist. Freight charges for moving the die cast to its production site are $1,000. The value of the assist would include transportation costs to the place of production which is $10,000 here. So the value of the assist is 10,000 + 1,000 = $11,000.

This value has to be apportioned over the production of 2,600 units using this dedicated die cast that will be sold in the U.S.
Therefore, the apportioned cost of the die cast tools per unit of goods sold in the US will be (10,000+1,000)/2,600 = $4.23

This official answer appears incorrect, and this question may be appealable.

The provision 19 CFR 111.22 has been deleted from the regulations.