The uncertainty about tariffs makes validating HTS codes more important than ever.

Clients often say “we’ve used the same harmonized codes for years” and “our products are duty free“. As a Licensed Customs Broker and consultant this tells me that I need to do some checking on the client’s behalf. Using obsolete or invalid HTS (Harmonized Tariff Schedule) codes is a sign of an amateurish operation. It is likely that, for these clients, commercial invoice descriptions need updating. If they are also an exporter we should check ECCNs, License Exceptions, and Schedule B numbers as well.

The HTS has been revised 15 times so far in 2025. Here is the link to the revisions for your reference:

https://hts.usitc.gov/download/archive

Don’t assume that your codes are valid. A little due diligence helps avoid problems down the road. Contact mitch@adhoclogistics.com for assistance.

https://www.linkedin.com/posts/adhoclogistics_self-blinding-is-a-risk-exporters-if-your-activity-7339349923915571200-t2-F?utm_source=share&utm_medium=member_desktop&rcm=ACoAAAGVD3UBu7RY4T4x68-aqSLyiBDvybv-4A0

Tariff uncertainty is the biggest issue in international trade today and, undoubtedly, for the foreseeable future. It is not easy to determine which commodities are subject to specific tariffs. Here is a reminder that the first step is accurate classification of the goods. This is “customs business” and must be carried out by a licensed customs broker (unless classifying solely on your own behalf).

https://www.linkedin.com/posts/adhoclogistics_customs-business-what-is-customs-business-activity-7320068799938846720-9jjx?utm_source=share&utm_medium=member_desktop&rcm=ACoAAAGVD3UBu7RY4T4x68-aqSLyiBDvybv-4A0

The April 2025 Customs Broker License Exam and Answer Key have been posted on the CBP website

https://www.cbp.gov/document/publications/past-customs-broker-license-examinations-answer-keys

Congratulations once again to all who passed the April 2025 Customs Broker License Exam.

It may come as a surprise that it can take up to a year before your license is issued. In addition to a passing grade on the CBLE, eligibility to become a customs broker requires applicants to be a US citizen at least 21 years of age, not be a current Federal Government employee, and possess good moral character.

Character is determined by an extensive background investigation. From the CBP website:

“Each Broker license applicant must undergo a background investigation that includes a fingerprint analysis and review of character references, credit reports, and arrest records.  Arrests and convictions do not necessarily preclude the issuance of a license.  In partnership, association, or corporation applications, individuals identified as principals with controlling interest, officers, partners, or members will also undergo a background investigation.”

Licensed Customs Brokers, via their entry filings, are responsible for the assessment of revenue for the United States in the form of duties and taxes. They must also ensure that they, and their clients, comply with the laws and regulations in all transactions. So the background check is more than a mere formality. Be patient applicants!

The April 23, 2025 CBLE (Customs Broker License Exam) resulted in a 30% pass rate prior to appeal decisions. Previous pass rate information is listed below. The exam and answer key will be posted on the CBP website.

Congratulations to all who passed! You are now eligible to go through the application process, background check, and fingerprinting to obtain your license. The process can be lengthy, so be patient.

Many brokers have needed more than one try, so don’t be discouraged if you came up short. If you want to challenge any of the questions here is the link explaining how to appeal. Let me suggest, however, that a better strategy may be to take the exam again in October.

https://www.cbp.gov/trade/programs-administration/customs-brokers/how-appeal

Pass Rate Information

The April 23, 2025 CBLE resulted in a 30% pass rate prior to appeal decisions.

The October 23, 2024 CBLE resulted in a 24% pass rate prior to appeal decisions.

The May 1, 2024 CBLE resulted in a 13% pass rate prior to appeal decisions.

To all who sat for the April 23rd CBLE (Customs Broker License Exam) you may now have your weekends back. I know from personal experience that you are feeling both relief that the exam is over and anxiety about your results. Here is some info from the CBP website about what happens next:

CBLE Score Notification Letters and Appeal Due Dates

The bi-annual Customs Broker License Exam (CBLE) is administered on the fourth Wednesday of April and October.  Exam Results Letters are emailed to examinees within two to three weeks from the date of the exam. First Appeals are due no later than 60 days from the date the Exam Results Letters were sent. Second Appeals are due no later than 60 days from the date the First Appeal Results Letters were sent.

Pass Rate Information

The October 23, 2024 CBLE resulted in a 24% pass rate prior to appeal decisions.

The May 1, 2024 CBLE resulted in a 13% pass rate prior to appeal decisions.

The October 25, 2023 CBLE resulted in a 34% pass rate prior to appeal decisions.

The April 26, 2023 CBLE resulted in a 5.5% pass rate prior to appeal decisions.

I will write about the appeal process after the results of the April exam are posted.

What is “customs business”? Licensed Customs Brokers deal with customs business on a daily basis but their activities are not always clear to new clients. For example, classifying goods for others is definitely customs business.

Importers, if you have been relying on your suppliers for HTS classifications of your products check this September 2022 CBP ruling. Briefly, it states that suppliers are not qualified to provide HTS classifications unless they employ LCBs (Licensed Customs Brokers), even with a disclaimer that the information is advisory.

Classifying goods for others is “customs business” and must be carried out by a licensed customs broker. Pursuant to 19 U.S.C. § 1641(b)(1), “[n]o person may conduct customs business (other than solely on behalf of that person) unless that person holds a valid customs broker’s license . . . .”

https://rulings.cbp.gov/ruling/H290535

The ruling includes the following language which explains that classifying to the six digit level is not considered customs business:

We note, however, that CBP has consistently held that classifying goods to the six-digit level of the HTS is not customs business and does not require a customs broker’s license. This level of classification “does not constitute customs business because the six-digit HTS provision is insufficient for entry.”

Contact mitch@adhoclogistics.com for classification help.

If you are a Licensed Customs Broker (LCB), it is a good idea to have a strategy in place to fulfill your continuing education requirement. Here is a reminder from the CBP website:

To maintain an active license, individually licensed brokers must earn 20 CE credits from qualifying educational activities that occur beginning January 1, 2025 through January 31, 2027. January 31, 2027 is the end of the current triennial period.

I have started gaining credits by registering and participating in Trade Outreach Webinars hosted by CBP. These are free of charge and there are a number of webinars to choose from each month. I must admit that some of the topics do not apply to my clients’ commodities. However, I am learning something from each webinar, which is the goal of continuing education, and avoiding a scramble toward the end of the triennial period.

Why not get started now? Here is the link for Trade Outreach Webinars:

https://www.cbp.gov/trade/stakeholder-engagement/webinars

I have fielded quite a few questions about tariffs and Customs Brokers in the last few weeks. While importers are familiar with brokers, many others are not. Here is some info from the CBP website:

Customs brokers are private individuals, partnerships, associations or corporations licensed, regulated and empowered by U.S. Customs and Border Protection (CBP) to assist importers and exporters in meeting Federal requirements governing imports and exports. Brokers submit necessary information and appropriate payments to CBP on behalf of their clients and charge them a fee for this service.

Brokers must have expertise in the entry procedures, admissibility requirements, classification, valuation, and the rates of duty and applicable taxes and fees for imported merchandise.

There are approximately 14,454 active licensed Customs brokers in the United States.

Corporations, partnerships and associations must have a broker license to transact Customs business. Each of these businesses must have at least one individually licensed officer, partner or associate to qualify the company’s license. Failure to have a qualifying officer or member (of a partnership) for more than 120 days will result in the revocation of the broker license.