In a recent post we discussed Country of Origin and “substantial transformation”. Here are a few questions from the April 2019 Customs Broker License exam. If you sit for the exam you have 4.5 hours to answer 80 questions, or a little more than 3 minutes per question, in an open book format. Questions 8 and 9 may seem obvious using the substantial transformation rule. Question # 11 will take a deeper dive into the regulations and this is what makes the exam difficult as it may consume valuable time. Test yourself and post your answers if you like.
8. Swedish iron ore is refined into steel near the town of Essen, Germany, and subsequently fashioned into automobile radiators in Bratislava, Slovakia, in 2018. What marking is required for the automobile radiators?
A. Product of EEC B. Made in SK C. Product of Germany D. Made in Slovakia E. Made in Czechoslovakia
9. Fish are caught by a Norwegian flagged vessel in international waters off the coast of Portugal. The fish are kept either whole or filleted on-board. The fillets are sent to England, where they are seasoned, battered, and pre-fried. What is the country of origin of the battered fillets?
A. Portugal B. England C. Norway D. Canada E. Spain
11. Mr. Smith contacts your brokerage from the Customs area at the local international airport. He has just flown in from the UK and is attempting to bring in new Scottish 100% wool sweaters to sell at his new store. CBP has advised him that although an appropriate country of origin label is found affixed to the sweaters, the fiber content label is not acceptable. Which of the following actions should the local CBP brokerage take? A. The sweaters should be released to Mr. Smith if he agrees to remove the content label because no labeling is needed due to the exemption of wool wearing apparel. B. The sweaters should be released to Mr. Smith because they fall under the Wool Products Labeling Act of 1939. C. The sweaters must be returned to the UK. D. The sweaters should be released to Mr. Smith, but he will have to label the sweaters at his own expense under Customs supervision. E. The sweaters should be released to Mr. Smith, but a marking duty equal to 10% of the price in the domestic retail market duty should be assessed against Mr. Smith.
A. The sweaters should be released to Mr. Smith if he agrees to remove the content label because no labeling is needed due to the exemption of wool wearing apparel. B. The sweaters should be released to Mr. Smith because they fall under the Wool Products Labeling Act of 1939. C. The sweaters must be returned to the UK. D. The sweaters should be released to Mr. Smith, but he will have to label the sweaters at his own expense under Customs supervision. E. The sweaters should be released to Mr. Smith, but a marking duty equal to 10% of the price in the domestic retail market duty should be assessed against Mr. Smith.