Which of the following statements is legally TRUE regarding a customs broker conducting "customs business?”
How to get there
19 CFR 111.3(a) Location. Customs business must be conducted within the customs territory of the United States as defined in § 101.1 …
(b) Point of contact. A licensed customs broker … conducting customs business under a national permit must designate a knowledgeable point of contact to be available to CBP during and outside of normal operating hours …
(b) Point of contact. A licensed customs broker … conducting customs business under a national permit must designate a knowledgeable point of contact to be available to CBP during and outside of normal operating hours …
19 CFR 101.1“Customs territory of the United States” includes only the States, the District of Columbia, and Puerto Rico.
Helping determine classification is customs business, and Puerto Rico is inside the customs territory, so a remote employee there is allowed. The answer is D.
Why the other choices are wrong
A) Outsourcing entry preparation to India: preparing documents for filing is itself customs business (§ 111.1), so it can't happen outside the customs territory, even if the broker transmits.
B) Contact available only during business hours: § 111.3(b) requires availability during and outside normal operating hours.
C) Transmitting entries from Europe: the broker's residence doesn't matter. The activity must take place inside the customs territory.
Tip
Customs business stays in the States, D.C. or Puerto Rico, wherever the broker lives. Not the USVI, Guam or abroad. And the point of contact must be reachable around the clock.
Sources: 19 CFR 111.3, 101.1, 111.1 (“Customs business”) (eCFR).
CBP answer key: Answer D · 19 CFR 101.1; 19 CFR 111.3(a); 19 CFR 111.3(b)Source: CBP past exams ↗