Andrew Balder, an employee of PM Morris Customs Brokerage (MCB), has decided to import dual color lapel men’s dress jackets to take advantage of their exploding popularity. One of MCB's clients regularly imports comparable dress jackets and has a record number of sales. Which of the following statements is CORRECT ?
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.
Andrew (an MCB employee) will import the same kind of jackets as MCB's client. The rule doesn't ban that. It requires the client to have full knowledge, so the client must be told. The answer is D.
Why the other choices are wrong
A) He may not import similar items: the regulation doesn't prohibit it. Disclosure cures the conflict.
B) Broker employees can't be importers: § 111.31(c) expressly contemplates "a broker's employee [who] is an importer."
C) Ask a Center Director for permission: no CBP approval is involved. The safeguard is the client's informed knowledge.
Tip
§ 111.31 conflicts: (a) former government employees can't take matters they handled in government; (b) no sharing fees with such people on matters they handled; (c) a broker or employee who imports competing goods may serve that client only with the client's full knowledge.
Source: 19 CFR 111.31 (eCFR).
CBP answer key: Answer D · 19 CFR 111.31(c)Source: CBP past exams ↗