Introduction to the U.S. Customs Broker Exam Preparation Course Taught by Instructor Norman Harris III.

1. Becoming a Customs Broker
Norman Harris III, License Number 11389
Trade Learning Network

2. About The Instructor
• Exam – Oct. 1987; passed 1st time with 86%
• Licensed in Feb. 1989 (License #11389)
• Teaching CHB training since 2009
Why take the broker’s exam?

3. What is a Customs Broker?
Customs brokers are private individuals, partnerships,
associations or corporations licensed, regulated and
empowered by U.S. Customs and Border Protection (CBP)
to assist importers and exporters in meeting Federal
requirements governing imports and exports. Brokers
submit necessary information and appropriate payments
to CBP on behalf of their clients and charge them a fee for
this service.

4. About Customs Brokers
• Must have expertise in the entry procedures,
admissibility requirements, classification, valuation, and
the rates of duty and applicable taxes and fees for
imported merchandise. Transcends to other government
agencies
• A Customhouse Broker (CHB) is a recognized expert
• Does not have attorney/client privilege

5. About Customs Brokers Cont’d.
• There are approximately 11,000 active licensed Customs
brokers in the United States
• 40% of more than 28,000 licenses issued since June 10,
1910 (Avg. 280 individual, corporate, partnership licenses
per year)

6. About Customs Brokers Cont’d.
• March 2, 1799 – in absence or sickness agent shall make
entry
• No regulatory requirement to use a Customs Broker
• December 8, 1993 – Customs Modernization Act
Establishes ‘reasonable care’ standard for importers

7. Section 484 of the Tariff Act
(19 U.S.C. 1484)
• The importer of record is responsible for using reasonable
care to enter, classify and determine the value of imported
merchandise and to provide any other information
necessary to enable the CBP to assess duties properly,
collect accurate statistics, and determine whether other
applicable legal requirements, if any, have been met
• As part of the entry process, goods must be classified

8. Section 484 of the Tariff Act Cont’d.
(19 U.S.C. 1484)
• Prior to the Customs Modernization Act enacted on
December 8, 1993, it was CBP’s responsibility to “classify”
imported goods
• CBP is now responsible for the final classification and
valuation of the goods by a process called “liquidation” of
the entry

9. Role of the Broker
• As defined by our customers’ needs
• Under regulatory responsibilities to CBP and other
agencies
• Act as agents of the importer and carry a fiduciary
responsibility
• The most regulated party in the supply chain
• Must perform at higher standards of excellence

10. Informed Compliance Publication
What Every Member of the Trade
Community Should Know About
Customs Brokers, January 2005
http://www.cbp.gov/xp/cgov/trade/legal/infor
med_compliance_pubs/

11. What About Customs
Brokerages?
• Corporations, partnerships and associations must have a
broker license to transact Customs business. Each of these
businesses must have at least one individually licensed officer,
partner or associate to qualify the company's license
• Failure to have a qualifying officer or member (of a
partnership) for more than 120 days will result in the
revocation of the broker license

12. Who is eligible to become
qualified as a Customs broker?
To be eligible, you must:
• Be a United States citizen at least 21 years old
• Not be a current Federal Government employee
• Possess good moral character

13. Assuming I am eligible, how do I
become a Customs broker?
• First, you must pass the Customs Broker License
Examination
• Second, you must submit a broker license
application with appropriate fees
• Third, your application must be approved by CBP

14. The Customs Broker License
Examination
Q: What is the Customs Broker License Examination?
A: The Customs Broker License Examination is an open book/open test
with 80 multiple-choice questions based on designated editions of:
• The Harmonized Tariff Schedule of the United States (HTSUS)
• Title 19, Code of Federal Regulations
• Specified Customs Directives
• Customs and Trade Automated Interface Requirements document (CATAIR)

15. The Customs Broker License
Examination Cont’d.
Q: How long is the Customs Broker License Examination?
A: You have four hours to complete the examination.

16. The Customs Broker License
Examination Cont’d.
Q: Where and when is the Customs Broker Examination given?
A: This examination is normally given at CBP service ports (Ports)
the first Monday in April and the first Monday in October. If that
Monday is a religious holiday, the examination will be given the
following Tuesday. The appropriate CBP port director must receive
the examination application and $200 fee at least 30 days in
advance of the examination.

17. The Customs Broker License
Examination Cont’d.
Q: What must applicants take to the Customs Broker Examination
site?
A: Each applicant is responsible for bringing proof of registration, a
picture identification, and the recommended reference materials
to the examination.

18. The Customs Broker License
Examination Cont’d.
Q: Must I be a U.S. citizen to take this examination?
A: Yes, you must be a citizen on the date of the examination.

19. The Customs Broker License
Examination Cont’d.
Q: What is a passing score?
A: A passing score is 75 percent or better.

20. The Customs Broker License
Examination Cont’d.
Q: What if I fail the examination?
A: You may retake the examination until you pass. You are
also entitled to submit an appeal of your examination score
to CBP in accordance with 19 CFR 111.13(f).

21. Notice of Examination
(08/23/2012) Notice of Examination for October 2012
• This notice announces that U.S. Customs and Border Protection
(CBP) will conduct the Customs Broker License Examination on
Wednesday, October 3, 2012. To better accommodate applicants
desiring to take the October 2012 broker examination, CBP has
automated the CBP broker examination registration, (Form 3124E,
“Application for Customs Broker License Exam”) and the payment
and collection of the required examination fee.

22. Notice of Examination Cont’d.
• Applicants must apply and pay the applicable fee ($200) on line (24
hours a day/7days per week) at the web address noted below until
12:00 p.m. (noon/Eastern Daylight Time), Monday, September 10,
2012. Payments must be by debit cards that can be used as a credit
card or credit card only. ( Application )
• Applicants who need assistance in completing the form, or have
questions concerning payment may send an email to
cbp.cbppay.gov@dhs.gov or may contact the CBP Pay.gov Help Desk
at (317) 614-4964.

23. Notice of Examination Cont’d.
• Applications and fees that are submitted directly to the service port
or CBP Headquarters will not be accepted and will be returned to the
applicant. The purpose of the examination, is to ‘determine the
individual’s knowledge of Customs and related laws, regulations and
procedures, bookkeeping, accounting, and all other appropriate
matters, necessary to render valuable service to importers and
exporters.’

24. Notice of Examination Cont’d.
• Applicants requesting Americans with Disabilities Act (ADA)
accommodations may send supporting documentation by close of
business (5:00 p.m. Eastern Time), Wednesday, September 5, 2012 via
email to Sharon.Daye@dhs.gov, via fax to (202) 863-6540, Attn:
Sharon Daye or by mail to:
U.S. Customs and Border Protection
Office of International Trade
Broker Compliance Branch
1400 L Street NW
Washington, DC 20229-1143

25. Notice of Examination Cont’d.
• As noted in Title 19 of the Code of Federal Regulations part 111.13(b):
In order to be eligible to take the broker examination, an individual
must (on the date of the examination), be a U.S. citizen, 18 years of
age, and is not an officer or employee of the U.S. Government.
• The examination will be administered at various locations. Applicant
will be notified of exam location and may contact the service port for
additional information.

26. Notice of Examination Cont’d.
• Any applicant who files an application and subsequently
wishes to withdraw from the exam, must submit a written
notice of withdrawal to the CBP service port noted on the
application, by COB, Friday, September 28, 2012. Refunds
will be processed within 60 days after the scheduled
exam.

27. Notice of Examination Cont’d.
• On the day of the examination, after the test
administrators have closed the doors to the examination
room, applicants will not be permitted into the
examination room and will not be allowed to sit for the
examination. There will be no exceptions. Please allocate
sufficient time for travel to the examination site, as no
exceptions will be made for traffic delays, late trains, or
similar incidences.

28. Notice of Examination Cont’d.
• The Customs Broker License Examination consists of 80
multiple-choice questions. A score of 75 percent is required to
pass. The examination lasts 4 hours. Exam topics may include:
Entry, Classification, Country of Origin, Trade Agreements,
Value, Antidumping/Countervailing Duty, Broker
Responsibilities, FP&F, Protests, Marking, Prohibited and
Restricted Merchandise, Drawback, Intellectual Property Rights,
and other subjects pertinent to a broker’s duties.

29. Notice of Examination Cont’d.
• Applicants should bring the reference materials noted below
and any other pertinent reference materials to the examination.
The use of any other versions of the listed references other
than those recommended is at the applicant's own risk.

30. Notice of Examination Cont’d.
• Applicants should bring the reference materials noted below and any
other pertinent reference materials to the examination. The use of any
other versions of the listed references other than those recommended
is at the applicant's own risk.
• Harmonized Tariff Schedule of the United States
• Title 19, Code of Federal Regulations
• Customs and Trade Automated Interface Requirements (CATAIR)
• Instructions for Preparation of CBP Form 7501
• Directives

31. • Harmonized Tariff Schedule of the United States (2012 version, No Supplements)
• Title 19, Code of Federal Regulations (revised as of April 1, 2012 Parts 0 to140, 141
to 199)
• Customs and Trade Automated Interface Requirements (CATAIR)
• Appendix B – Valid Codes
• Appendix D – Metric Conversion
• Appendix E – Valid Entry Numbers
• Appendix G – Common Errors
• Glossary of Terms
• Instructions for Preparation of CBP Form 7501 (July 24, 2012)
• Directives
• (3550-055) Instructions for Deriving Manufacturer/Shipper Identification Code
• (3550-079A) Ultimate Consignee at time of Entry or Release
• (3530-002A) Right to Make Entry
• (3510-04) Monetary Guidelines for Setting Bond Amounts

32. Notice of Examination Cont’d.
• Applicants must provide their own reference materials.
• Examinee may use any written reference material; however, use
of any electronic device during the exam (i.e., laptops, iPads,
smart phones, personal digital assistants (PDAs), etc.) is
prohibited.
• Cell phones, pagers, and other communication devices may not
be used inside the examination room.
• Any applicant caught cheating will be removed from the exam.

33. The Exam
http://www.cbp.gov/xp/cgov/trade/trade_programs/broker/broker_exam/exam_and_key_downloads/
Section I: Classification
Select the classification for a hand-operated mechanical floor sweeper, not
motorized, with a plastic handle and cover. The sweeper contains an
internal trash receptacle that is filled as the sweeper is pushed across the
room and the brushes cause the trash to be swept into the receptacle.
What is the correct classification of the floor sweeper?
• 8479.89.2000 • 9603.90.8040
• 8479.89.6500 • 9603.90.8050
• 8479.89.7000

34. The Exam Cont’d.
http://www.cbp.gov/xp/cgov/trade/trade_programs/broker/broker_exam/exam_and_key_downloads/
Section I: Classification
What is the correct classification of men’s woven dress shirts of 85%
cotton, 15% Jute, and one color in warp and filling?
• 6105.10.0010
• 6205.20.1000
• 6205.20.2016
• 6205.20.2021
• 6205.20.2026

35. The Answers
Question Answer Citation
1. E HTSUS Chapter 84, Note 1(g) and
9306.90.8050
2. E HTS GRI 1 and 6205.20.2026

36. Applying for a Customs Broker
License
Q: When may I apply?
A: Assuming you are eligible, you may apply after you pass
the Customs Broker License Examination.

37. Applying for a Customs Broker
License Cont’d.
Q: How long after passing the examination can I wait to
apply for a broker license?
A: You must apply to a CBP port director within three years
of the date of the letter notifying you that you passed the
Customs Broker License Examination.

38. Applying for a Customs Broker
License Cont’d.
Q: What are the fees for a broker license application?
A: There is a $200 application fee (plus a fingerprint check
and processing fee).

39. Applying for a Customs Broker
License Cont’d.
Q: Where do I apply?
A: Apply to the port where you want to transact Customs
business as a broker.

40. Broker License Application
Review
Q: Who reviews broker license applications?
A: There are three levels of review. First is a multi-agency
background investigation. Second, the CBP port director reviews
the background investigation and any other pertinent information,
and forwards a recommendation to CBP Headquarters in
Washington, D.C. Finally, CBP will carefully evaluate each
application, and the Assistant Commissioner, Office of
International Trade, will advise the applicant whether his or her
application is approved.

41. Broker License Application
Review Cont’d.
Q: Who reviews broker license applications?
A: There are three levels of review. First is a multi-agency background
investigation. Second, the CBP port director reviews the background
investigation and any other pertinent information, and forwards a
recommendation to CBP Headquarters in Washington, D.C. Finally,
CBP will carefully evaluate each application, and the Assistant
Commissioner, Office of International Trade, will advise the applicant
whether his or her application is approved.

42. Broker License Application
Review Cont’d.
Q: What does the background investigation include?
A: Each broker license applicant must undergo a background
investigation that includes a fingerprint analysis and a review
of character references, credit reports, and any arrest record.
Arrests or convictions do not necessarily preclude the
issuance of a license.

43. Broker License Application
Review Cont’d.
Q: How long does the license application process take?
A: The length of time it takes to complete the license application
process can vary depending on multiple factors. Some of the
factors include but are not limited to the amount of different
locations the applicant has lived in, the workload of the agent
conducting the background investigation and the national security
threat level. An application can take from 8 to 12 months to
process.

44. Broker License Application
Review Cont’d.
Q: Is there an appeal if a broker license application is
denied by CBP?
A: Yes. Appeal procedures are outlined in 19 CFR 111.17.

45. The Course
Previous industry experience can be a disadvantage, just be
aware, it’s all about the regulations and other material
specified in the exam notice.
• Rule Number 1: Read all of 19 CFR Parts 1-140 & 141-199
• Rule Number 2: Read the Chapter Notes to the Harmonized
Tariff Schedule (HTS)
• Rule Number 3: Use the indexes in both 19 CFR and the HTS

46. Study Tips
• Don’t make it any more difficult or confuse yourself, stick to the
material
• Know where to find the information, don’t try to memorize
everything
• Highlight key words, not whole sections
• Pay close attention to the words ‘may’ and ‘shall’
• Tab the beginning of each section
• Use the index
• Practice exams last, different philosophy

47. Pace Yourself
• Keep a logical, methodical study plan
• Estimate the number of hours required; Read for an
hour, divide by the total number of pages in the regulations
Example:
(1 to 140) 842 pages + (141 to 199) 647 pages = 1489 pages
1489 pages / 20 pages per hour = 75 hours 7.5 hrs per week

48. Please Note
• Be aware of the exam notice deadline for
registration
• Requirements for taking the broker exam
19 CFR 111.0 – Scope
• Materials: www.boskage.com
• Private tutoring is available

49. Course Syllabus
Class Description 19 CFR Reference
Class One Introduction
Requirements for Taking the Broker Exam 111
Broker Compliance 111
HTS Home Assignment
Class Two Powers of Attorney 141.31-46
GRI/HTSUS Classification 152
Binding Ruling Requests 177
http://www.usitc.gov/elearning/hts/menu/

50. Course Brochure