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§ 113.62 Basic importation and entry bond conditions.
A bond for basic importation and entry must contain the conditions listed in this section and may be either a single transaction or a continuous bond.

Basic Importation and Entry Bond Conditions
(a) Agreement to Pay Duties, Taxes, and Charges.

(1) If merchandise is imported and released from CBP custody or withdrawn from a CBP bonded warehouse into the commerce of, or for consumption in, the United States, or under § 181.53 of this chapter is withdrawn from a duty-deferral program for exportation to Canada or Mexico or for entry into a duty-deferral program in Canada or Mexico, the obligors (principal and surety, jointly and severally) agree to:

(i) Deposit, within the time prescribed by law or regulation, any duties, taxes, and charges imposed, or estimated to be due, at the time of release or withdrawal; and
…

(n) Consequence of default.
(4) If the principal defaults on agreements in the condition set forth in paragraph (a)(1)(i) of this section only, the obligors (principal and surety, jointly and severally) agree to pay liquidated damages equal to two times the unpaid duties, taxes and charges estimated to be due or $1,000, whichever is greater.

The correct answer choice is A and the citation is 19 CFR 113.62(n)(4).

§ 174.28 Consideration of additional arguments.
In determining whether to allow or deny a protest filed within the time allowed, a reviewing officer may consider alternative claims and additional grounds or arguments submitted in writing by the protesting party with respect to any decision which is the subject of a valid protest at any time prior to disposition of the protest. In any case in which alternative claims or additional grounds or arguments are submitted orally, they shall be considered in the allowance or denial of the protest only if submitted in writing in conjunction with, or no later than 60 days after, such oral submission.

When “additional grounds or arguments are submitted orally, they shall be considered in the allowance or denial of the protest only if submitted in writing in conjunction with, or no later than 60 days after, such oral submission.” So answer choice D is correct under current regulations.

An older version (1998) of the regulation 19 CFR § 18.12(a) read as follows:

(a) Merchandise received under an immediate transportation without appraisement entry may be entered for transportation and exportation or for immediate transportation, or under any other form of entry, and shall be subject to all the conditions pertaining to merchandise entered at a port of first arrival if not more than 6 months have elapsed from the date of original importation. If more than 6 months have elapsed, only an entry for consumption shall be accepted.

The current version of this regulation, reads as follows:

§ 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.

Under the old regulations which were in force when this question was set, answer choice B is correct. However, under the amended regulations prevailing as of now, this answer is outdated.

0709.70.0000
Spinach, New Zealand spinach and orache spinach (garden spinach)
General rate of duty: 20%
Special rate of duty: Free (A+, AU, BH, CA, CL, CO, D, E, IL, JO, KR, MA, MX, OM, P, PA, PE, SG)

General Note 3(c)
Generalized System of Preferences………………………………………………….A, A* or A+
United States-Australia Free Trade Agreement……………………………………………..AU
United States-Bahrain Free Trade Agreement Implementation Act………………..BH
Goods of Canada, under the terms of general note 12 to this schedule…………CA
United States-Chile Free Trade Agreement…………………………………………………….CL
United States-Colombia Trade Promotion Agreement Implementation Act……CO
African Growth and Opportunity Act……………………………………………………………..D
Caribbean Basin Economic Recovery Act……………………………………………………….E or E*
United States-Israel Free Trade Area……………………………………………………………..IL
United States-Jordan Free Trade Area Implementation Act……………………………JO
United States-Korea Free Trade Agreement Implementation Act…………………..KR
United States-Morocco Free Trade Agreement Implementation Act………………MA
Goods of Mexico, under the terms of general note 12 to this schedule…………MX
United States-Oman Free Trade Agreement Implementation Act………………….OM
Dominican Republic-Central America-United States Free Trade Agreement Implementation
Act……………………………………………………………………………………………………………. P or P+
United States-Panama Trade Promotion Agreement Implementation Act……..PA
United States-Peru Trade Promotion Agreement Implementation Act…………..PE
United States-Singapore Free Trade Agreement……………………………………………SG

Under the current tariff, spinach from Chile is imported free of duty under the US-Chile Free Trade Agreement. That may not have been the case under an older tariff which was applicable when this question was originally set.

Prior to October 1999, 19 CFR 24.3 (e) provided that (1) a bill for increased or additional duties determined to be due upon a liquidation or reliquidation is due 15 days from the date of such liquidation or reliquidation,

However, this was amended in Oct 1999 to the effect that duties, fees, and interest determined to be due upon liquidation or reliquidation are due 30 days after issuance of the bill for payment.

The current version of the regulations 19 CFR § 24.3 (e) states that except for bills resulting from dishonored checks or dishonored Automated Clearinghouse (ACH) transactions, all other bills for duties, taxes, fees, interest, or other charges are due and payable within 30 days of the date of issuance of the bill. Bills resulting from dishonored checks or dishonored ACH transactions are due within 15 days of the date of issuance of the bill.

Therefore, the correct answer choice under the current regulations is D. 30 days. Please provide the quiz or test number and question number so I can update the answer.

§ 111.96 Fees.(b) Permit fee. A fee of $100 must be paid in connection with each permit application under § 111.19 to defray the costs of processing the application, including an application for reinstatement of a permit that was revoked by operation of law or otherwise.

(c) User fee. Payment of an annual user fee specified in § 24.22(h) of this chapter is required for each permit …

§ 24.22 Fees for certain services.
(h) Annual customs broker permit user fee. Customs brokers are subject to an annual user fee of $138, as adjusted by the terms of paragraph (k) of this section, for each district permit and for a national permit held by an individual, partnership, association, or corporation.
(k) Adjustment for inflation of Customs Consolidated Omnibus Budget Reconciliation Act (COBRA) user fees –
(1) Fee amounts. CBP will determine annually whether an adjustment to the fees and limitations is necessary and a notice specifying the amount of the fees and limitations, as adjusted, will be published in the Federal Register annually for each fiscal year at least 60 days prior to the effective date of the new fees and limitations.

Therefore the correct answer as per the current regulations is $100 + $138 = $238.

However, this question is from the October 2004 exam and the regulations prevailing at that time were as follows:
§ 111.19 Permits.
(c) Fees. Each application for a district permit under paragraph (b) of this section must be accompanied by the $100 and $125 fees specified in §§ 111.96(b) and (c).

Therefore the correct answer was $100 + $125 = $225 at that time which is answer choice A. The annual user fee of $125 has been adjusted to $138 today due to inflation as provided in § 24.22(k).

§ 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.

This question is from the April 2005 Test, Question 54.
The invoice provided in the question shows an invoice value of 236,000 Jordanian dinar. We are told that the official exchange rate was 0.7777 Jordanian dinar to 1 USD.

§ 159.32 The date of exportation for currency conversion shall be fixed in accordance with § 152.1(c) of this chapter.
§ 152.1(c) “Date of exportation,” or the “time of exportation” referred to in section 402, Tariff Act of 1930, as amended (19 U.S.C. 1401a), means the actual date the merchandise finally leaves the country of exportation for the United States.

This shipment departed Jordan on March 16, 2005, when the official daily exchange rate was 0.7777 Jordanian dinar equals 1 U.S. dollar and that is the exchange rate prevailing on the date of export. The currency devaluation by 20% is irrelevant here as it took place after the date of export.

To convert foreign currency to USD, you need to divide the amount of foreign currency by its exchange rate with the US dollar.

236,000/0.7777 = $303,459 and so the correct answer is answer choice B.

There is a short cut method to find the correct answer as well. Regardless of the currency used in the invoice, the entered value has to be in USD and so we need to convert any foreign currency to USD by applying the exchange rate.
Here we are told that 0.7777 Jordanian dinars = 1 USD
So 1 Jordanian dinar = 1/0.7777 = 1.286 USD.
The invoice value is declared to be 236,000 Jordanian dinars and its equivalent has to be a greater number in USD. The answer choices are:
A. $ 236,000
B. $ 303,459
C. $ 183,537
D. JD 111,392,000
E. JD 236,000

D and E can be eliminated as those answers are not in USD. That leaves us with A, B and C choices. C is a smaller figure which cannot be correct. A is the same figure as in Jordanian dinar which is also not correct due to the exchange rate not being 1 dinar = 1 USD.
The only answer that fits that requirement is the sole remaining answer choice B $303,459. By this type of short cut method of thinking, you can solve this question in under half a minute and save time for other questions.

• This reply was modified 3 years ago by admin.
• This reply was modified 3 years ago by admin.