Customs Broker License Exam Introduction
Customs brokerage, sometimes referred to as a Customs broker, is a professional service business that transmits and completes documents for individuals or businesses for the importing or exporting of goods across international borders. These goods may include anything from foreign cars to food, raw materials to products, or any other product traded across an international border. To be a customs broker, an individual must first attain a license which is granted through the Department of Homeland Security and the U.S. Customs and Border Protection (CBP). The Customs Broker License Exam is a necessary part of the licensing process, designed to test the knowledge of prospective brokers on various aspects of the customs trade.
The Customs Broker License Exam is a four-hour, 200-question multiple-choice test. The exam is divided into three parts: customs regulations, entry procedures and classifications, and de minimis values. In order to be eligible to sit for the exam, the applicant must have three or more years of experience in customs trade or an academic degree in customs-related studies, or a combination of the two. Applicants for the exam must also register with CBP three months prior to the exam date.
The customs regulations section of the exam focuses on the knowledge of applicable laws and regulations for the goods being imported or exported, determining the applicable duties, fees, taxes, and other levies, as well as other pertinent information such as tariff classification rules, corrections and marking requirements, country of origin requirements, and documents necessary for entry or export.
The second section of the exam tests a candidate on the entry and classification of goods. This section will ask the applicant to identified goods, process their entry, and determine their tariff classifications. Questions may also be related to tariffs, quotas, bonded warehouses and inventory, penalties and fees, and other related topics.
The last section of the exam focuses on the de minimis value, which is the maximum value of goods that can be imported into the country without being subject to customs duties. Questions in this section primarily involve knowing the laws and regulations applicable to each type of goods, as well as its de minimis value and applicable duties and taxes.
The Customs Broker License Exam is a challenging and comprehensive test which assesses the knowledge of prospective brokers on the laws and regulations governing the international trade of goods. Although a difficult test, those who demonstrate their mastery of the material can gain a valuable license which will open up a wide range of opportunities to them in the field of customs brokerage.
