AA Customs Brokers, Inc. has a corporate customs broker license and a national permit. Tom, the individually licensed broker who was the corporation's national permit qualifier, has recently resigned from AA Customs Brokers, Inc. What is the maximum number of days from Tom's effective resignation date that AA Customs Brokers, Inc. has to find a new licensed customs broker to qualify its national permit to avoid their permit's revocation by operation of law?
How to get there
19 CFR 111.45(a): Revocation by operation of lawIf a broker that is a partnership, association, or corporation fails to have, during any continuous period of 120 days, at least one member … or … officer … who holds a valid individual broker's license, that failure will … result in the revocation by operation of law of the license and the national permit … If a broker … fails to employ, during any continuous period of 180 days, a licensed customs broker who is the national permit qualifier … that failure will … result in the revocation by operation of law of the national permit …
Tom was the national permit qualifier, so the 180-day rule applies. The answer is D.
Why the other choices are wrong
A) 120 days: that's the rule for having a licensed officer or member (the license qualifier), and missing it costs the license and the permit. Tom's role was the permit qualifier.
B) 60 days and C) 30 days: not periods in § 111.45(a). 30 days is the advance warning CBP gives before a revocation, if the broker told CBP about the underlying event.
Trap!
120 days → license qualifier (licensed officer or member; losing it costs both license and permit). 180 days → national permit qualifier (losing it costs the permit). Separately, the corporation must report a qualifier change within 10 calendar days (§ 111.30(b)).
Source: 19 CFR 111.45(a) (eCFR).
CBP answer key: Answer D · 19 CFR 111.45(a)Source: CBP past exams ↗