Which of the following is considered "customs business?"
How to get there
19 CFR 111.1: Customs business“Customs business” means those activities involving transactions with CBP concerning the entry and admissibility of merchandise, its classification and valuation, the payment of duties, taxes, or other charges …, and the refund, rebate, or drawback of those duties, taxes, or other charges. “Customs business” also includes the preparation, and activities relating to the preparation, of documents in any format and the electronic transmission of documents and parts of documents intended to be filed with CBP in furtherance of any other customs business activity, whether or not signed or filed by the preparer. However, “customs business” does not include the mere electronic transmission of data received for transmission to CBP and does not include a corporate compliance activity.
Choice A quotes the second sentence of the definition. The answer is A.
Why the other choices are wrong
B) Processing broker license or permit applications: that's CBP's own administrative work, not a transaction with CBP about merchandise.
C) Ensuring a related entity's documents are prepared with reasonable care: this is the definition of corporate compliance activity, which § 111.1 expressly excludes from customs business.
D) Dispatching shipments in foreign commerce: freight forwarding and logistics. Arranging transport isn't a transaction with CBP about entry, classification, value or duties.
Tip
Customs business = dealing with CBP about entry, admissibility, classification, value, duties or drawback, plus preparing the documents for it. Excluded: mere data transmission and corporate compliance activity. This is what requires a license.
Source: 19 CFR 111.1 (“Customs business,” “Corporate compliance activity”) (eCFR).
CBP answer key: Answer A · 19 CFR 111.1Source: CBP past exams ↗