Which of the following statements is TRUE ? For the purposes of this question, an organization means a partnership, association, or corporation.
How to get there
19 CFR 111.19(b): Application for a national permitAn applicant who obtains a passing grade on the examination for an individual broker's license may apply for a national permit. The applicant will exercise responsible supervision and control (as described in § 111.28) over the activities conducted under that national permit. … An applicant applying for a national permit on behalf of a partnership, association, or corporation must be a licensed broker employed by the partnership, association, or corporation. …
Choice A restates both sentences: the applicant must be a licensed broker employed by the organization, and that person exercises responsible supervision and control under the permit (also § 111.19(f)). The answer is A.
Why the other choices are wrong
B) Permit issued even if the license is denied: § 111.2(b) describes a national permit "issued to a broker", and a broker is a license holder. You may apply for the permit at the same time as the license, but with no license there's no permit.
C) District permit first: current Part 111 has no district permits. Section 111.19(a) provides a single national permit covering the whole customs territory, and an organization applies for it directly through a licensed employee.
D) Unlicensed employee acting for themselves with their own clients: § 111.2(a)(2)(ii) excuses an employee from licensing only when "acting solely for his employer". Doing customs business for one's own clients requires a license.
Tip
Organization's permit = a licensed employee's job. The qualifier holds the license, works for the organization, and carries the supervision duty.
Sources: 19 CFR 111.2(a)(2)(ii), 111.2(b), 111.19(a), (b), (f), 111.28 (eCFR).
CBP answer key: Answer A · 19 CFR 111.19Source: CBP past exams ↗