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The corporate license and permit qualifier suspends his license: which option is FALSE?

October 2025 examBroker ComplianceQuestion 7 of 80

ZX Customs Brokers, Inc. (ZX) is a customs broker that is a corporation. George Forest, an individually licensed customs broker, is ZX’s Vice President of Compliance and is the qualifier for ZX’s license and national permit. On May 1, 2025, the Executive Director, Office of Trade, CBP accepts Mr. Forest’s voluntary suspension of his individual license for one year effective May 5, 2025 due to health issues. ZX’s Import Manager, Jayne Smythe, is an individually licensed broker, but she is not a duly appointed officer of ZX. Which of the following statements is FALSE ?

How to get there

George Forest qualified both ZX's license and its national permit. His suspension (effective May 5, 2025) opens two gaps, each with its own clock:

19 CFR 111.11(c)(2) and 111.45(a)(111.11(c)) … an association or corporation must … (2) Have at least one officer who is a broker.
(111.45(a)) If a … corporation fails to have, during any continuous period of 120 days, at least one … officer … who holds a valid individual broker's license … [result:] 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 … [result:] revocation … of the national permit.

Ms. Smythe is licensed but not an officer. Naming her permit qualifier fixes the permit, but ZX still has no licensed officer. After 120 days (September 2, 2025), the license and the permit are revoked by operation of law. So A ("continue until the permit expires December 31") is FALSE.

Why the other statements are TRUE

B) A written voluntary offer of suspension of ZX's license and permit: § 111.52 lets the Executive Director accept "a broker's written voluntary offer of suspension of the broker's license or permit for a specific period of time."
C) Make Smythe an officer, then qualifier for both: once she's an officer, she meets § 111.11(c)(2) and can qualify both license and permit.
D) Hire Dr. Hu as an officer before September 2 to qualify the license, with Smythe as permit qualifier: this beats the 120-day deadline for a licensed officer, and the permit qualifier only has to be a licensed employee.
Trap!
License qualifier = a licensed officer (for a corporation) or member (for a partnership), 120-day clock. Permit qualifier = any licensed employee, 180-day clock. If one person held both roles, solving only the permit side doesn't save the license.

Sources: 19 CFR 111.11(c); 111.19; 111.45(a); 111.52 (eCFR).

CBP answer key: Answer A · 19 CFR 111.52; 19 CFR 111.11(c); 19 CFR 111.19; 19 CFR 111.45Source: CBP past exams ↗