Which of the following scenarios demonstrates that a customs broker may have failed to maintain responsible supervision and control over their customs business?
How to get there
19 CFR 111.3(b): Point of contactA 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 … and must maintain accurate and current point of contact information in a CBP-authorized electronic data interchange (EDI) system. …
19 CFR 111.28(a) factors (excerpt)… (12) Communications between CBP and the broker, and the broker's responsiveness and action to communications, direction, and notices from CBP; …
Smith let the designated contact lapse when Johnson left and has been unreachable for six months, which fails both rules. The answer is A.
Why the other choices are wrong
B) Two offices without an on-site broker but supervised twice weekly: under the national permit system there's no per-office licensed-broker requirement. Supervisory visits are a § 111.28(a)(7) factor that supports adequate supervision.
C) Unknowingly hiring a felon who lied on his application: the § 111.53(e) violation requires knowingly employing a convicted felon. Once the broker learns of the conviction, it must seek approval.
D) Paying CBP 12 days after arrival: duties are due with the entry summary, 10 working days after entry (§ 142.12(b)), which can easily fall about 12 calendar days after arrival. Nothing here shows lack of supervision.
Tip
Point of contact = always reachable. Update it in ACE whenever staff change. Unanswered CBP communications are an explicit supervision factor.
Sources: 19 CFR 111.3(b), 111.28(a), 111.53(e), 142.12(b) (eCFR).
CBP answer key: Answer A · 19 CFR 111.3(b); 19 CFR 111.28(a)Source: CBP past exams ↗