Which of the following statements is FALSE ?
How to get there
19 CFR 111.31(c): Importations by broker or employeeA broker who is an importer himself must not act as broker for an importer who imports merchandise of the same general character as that imported by the broker unless the client has full knowledge of the facts. The same restriction will apply if a broker's employee is an importer.
The rule has a built-in exception: the client's full knowledge. So "without exception" makes C the false statement. The answer is C.
Why the other choices are wrong (they're true)
A) Late client payments go to the Government within 5 working days: true. § 111.29(a): "Payments received by a broker from a client after the due date must be transmitted to the Government within 5 working days from receipt by the broker."
B) Client records are confidential: true. § 111.24 says records "pertaining to the business of the clients serviced by the broker are to be considered confidential."
D) Each broker must exercise responsible supervision and control: true. That is the duty set out in § 111.28(a).
Tip
On FALSE questions, absolute words like "without exception", "always" and "never" deserve a second look. Many broker rules come with an "unless" clause.
Sources: 19 CFR 111.24, 111.28(a), 111.29(a), 111.31(c) (eCFR).
CBP answer key: Answer C · 19 CFR 111.31(c)Source: CBP past exams ↗