What is the penalty for any person who intentionally transacts customs business, other than as provided in 19 CFR 111.2(a)(2), without holding a valid broker's license?
How to get there
19 CFR 111.4: Transacting customs business without a licenseAny person who intentionally transacts customs business, other than as provided in § 111.2(a)(2), without holding a valid broker's license, will be liable for a monetary penalty for each such transaction as well as for each violation of any other provision of 19 U.S.C. 1641. The penalty will be assessed in accordance with subpart E of this part.
A monetary penalty, per transaction: D.
Why the other choices are wrong
A) A written reprimand: reprimands are a licensed broker discipline tool. An unlicensed person has no license to discipline. § 111.4 imposes money penalties.
B) Criminal sanctions: § 111.4 provides a civil monetary penalty, assessed under Part 111 subpart E.
C) An automatic import bar: no such sanction exists in § 111.4.
Tip
The exceptions in § 111.2(a)(2), where no license is needed: importers acting on their own account (and their employees), broker employees acting for the broker, vessel or marine transactions, in-bond carriers, noncommercial shipments under § 141.33, and FTZ activities that don't move goods into U.S. customs territory.
Sources: 19 CFR 111.4; 111.2(a)(2) (eCFR).
CBP answer key: Answer D · 19 CFR 111.2(a)(2); 19 CFR 111.4Source: CBP past exams ↗