The Customs Broker Examination, CH 3, Part 1: Acquiring Source Materials

The following is an excerpt of The Customs Broker Examination, by Scott Warren Taylor and Andrew Moxon. This book is a part of the Customs Broker Exam Preparation Course from Boskage Commerce Publications. We'll be posting a large excerpt here, with new posts every Tuesday and Thursday morning. Click here if you want to read the whole book right away.

Chapter 3: Methods of Study

Part 1: Acquiring Source Materials

Developing an Overview
This book is written for students who have a singular interest in research of Title 19 CFR, Chapter I, Parts 0-199, otherwise known as the CBP Regulations (often referred to as the “Regulations”, or “19 CFR”) and the Harmonized Tariff Schedule of the United States (HTSUS) for the purpose of passing the Customs Brokers Examination (CBE). Preparation for the CBE should not be confused with the task of mastering the law and putting it into practice in the field of international trade. The latter effort involves different knowledge, different skills, and a different – perhaps never-ending – period of development. Having the necessary knowledge and skill to pass the test is not the same as having the necessary knowledge and skill to serve as a licensed customs broker.

Nor are the skills that help you excel in the field of customs brokerage necessarily the same ones that will help you pass the examination. While actual experience is helpful, the key to success is a thorough knowledge of the regulations.

The information in this chapter will help you begin your study of the resource materials required to pass; it will help you modify resource materials; it will help you design a study plan that is right for you; and it will help you execute your study plan with confidence. It is just as crucial for the experienced student to follow the techniques presented in this course as it is for the inexperienced student who has no knowledge of the field.

Acquiring Source Materials
The goal is to achieve a score of 75 percent or greater on the CBE. To do this requires understanding, memorization, and familiarity with the examination resources. The most crucial publications are the CBP Regulations and the Harmonized Tariff of the United States (HTSUS), but by no means are they the only resources available for use while studying for the CBE. The first step in the process is to develop a list of the resources required, and then obtain the information itself.

The CBE is based upon a handful of trade and tariff acts from which the CBP Regulations and the HTSUS are written. Obtaining the acts themselves can be helpful, but is not necessary. The Regulations and the HTSUS (along with certain selected directives from CBP) contain all the requisite information, and the official Notice of Examination will list all required resources for each examination.

It is important to remember that to be effective, your study will be systematic and disciplined. The basic principles of preparation are presented here. You should follow those principles to achieve your goal, modifying them to fit your own time requirements and ability. Hopefully, you will not deviate far from the principles themselves. First, acquire all resource information material, and then, using the information provided here, dissect the resource material and eliminate unnecessary sections. For example, certain parts of the CBP Regulations are rarely tested and will not need to be studied in depth.

Before beginning this course, you should obtain your own editions of the HTSUS and the CBP Regulations. Make sure you use the correct editions specified in the Notice of Examination – incorrect editions could result in your not being able to find the correct answers. Do not use an office copy that must be returned each day or someone else’s copy that cannot be modified. You will be referring to the editions constantly as you study. The copies you use to prepare for the CBE should be yours and yours only. In the course of your studies you will mark the pages, make notations, summaries, and cross-references as you study and re-study their contents. Many students index and rearrange them for the sake of convenience; but to be successful, you must become as familiar with them as possible and using the same edition from beginning to end can help.

Government editions are preferable to privately published editions. The quickest way to obtain a copy and to make certain that updates and revisions are received in a timely manner, and that you are advised when new editions are available, is to contact:

Government Subscriptions:
Boskage Commerce Publications Ltd
P.O. Box 337
Allegan, MI 49010
(888) 880-4088
(269) 673-7242
FAX (269) 673-5901
www.boskage.com

19 CFR, Parts 0-199
19 CFR is the most studied text for preparation and the most referred to after your license has been obtained. It is the section of United States Regulations that specifically addresses the regulations under enforcement by CBP. A codification of the general and permanent rules published in the Federal Register by the Executive departments and agencies of the Federal Government, the Code of Federal Regulations is divided into Titles that represent broad areas subject to Federal regulation. Each Title is divided into chapters that usually bear the name of the issuing agency. You will be studying from the first chapter of Title 19.

Each title is further subdivided into Parts covering specific regulation areas. 19 CFR is published in two versions. The first is in two paperback volumes and not updated. It is published annually, although the release date varies from summer to late fall. The second edition is looseleaf, unbound, 8-1/2 x 11", and drilled for inclusion in a standard three-ring notebook.

Although there are advantages to both editions (e.g., the bound edition is more compact and easy to carry), the looseleaf subscription edition is preferable because it is not only easier to handle during your course of study – larger format and capable of lying flat, – it also is purchased as a “subscription,” insuring that as 19 CFR is updated and revised as a result of the various agencies and legislative bodies of the government, the updated supplements or changes are sent to the holder of the subscription and are the surest method of remaining current.

The looseleaf edition of 19 CFR also allows tabbing and reorganization of the text. Most students find it preferable to move more essential Parts of the Regulations to the front where they can be found quickly, for instance.

The only way to update the paperback edition is through the Federal Register. But if the purchaser of the single, bound copy of 19 CFR does not subscribe to the Federal Register to receive changes in the Regulations, the edition quickly becomes outdated.

Source Material Note: Historically, only Chapter I of 19 CFR (covering parts 1-199) has been used as a source material for the CBE. Recently, however, Customs and Border Protection has announced that a number of other source documents will be used as potential sources for CBE questions.

Currently, selected sections of the CATAIR (user instructions for the Automated Broker Interface), the revised instructions for the new form CBP 7501 and several other selected directives may be tested on the Customs Broker Exam. However, for each examination, the only authoritative resource list will be found in the official Notice of Examination.

Obviously, the minor sources are very specific in scope. All should be studied in case a question on their respective subjects should arise, at which point the student should easily be able to research the correct answer.

HTSUS
Maintained by the USITC, the HTSUS is published pursuant to the 1988 Omnibus Trade and Competitiveness Act of 1988 and is the product-by-product listing of all the rates of duty for goods entering the U.S., as well as the source for statistical nomenclature for reporting statistical information required on importation documentation. The HTSUS also contains certain rules governing such specific duty treatments as the Generalized System of Preferences(GSP), the Automotive Products Trade Act, the North American Free Trade Agreement (NAFTA), the Caribbean Basin Economic Recovery Act (CBERA), the US-Israel Trade Agreement, the US-Australia Trade Agreement, and the Andean Trade Preference Act (ATPA).

The HTSUS is in a constant state of change, continually revised, updated, corrected, and supplemented throughout the year to document changes in (or as a result of) tariff rate revisions, changes in product descriptions, quotas, Presidential Proclamations and legislative activities.

Like 19 CFR, the HTSUS can be purchased as a subscription, giving the subscription holder the most current edition available. Updates and supplements are sent to the address of the subscription holder as they are published.

This concludes today's excerpt from The Customs Broker Examination.

Customs Broker Exam Study Tip 1: Required Resources

Now that you have made the decision to take the October Customs Broker Exam, it is important develop a study plan that guarantees your chances of success. Boskage wants to help you achieve your goal of passing the exam; therefore, we are starting a series of articles to support you on your journey to success! Our first topic in this series focuses on exam resources.

The first step in your plan should be acquiring the required texts and study materials. These materials come in two categories, “required” and “study aids”. Required materials are those that students must have because questions on the exam have been selected from these sources. CBP lists the required materials in the Notice of Examination. The required materials are listed below and you should obtain them now if do not already have them. All of the required materials can be purchased from Boskage Commerce Publications.

Required Exam Resources
1. Harmonized Tariff Schedule of the United States (2008 version - Supplement 1)

2. Title 19, Code of Federal Regulations (revised as of April 1, 2008 Parts 0 to140, 141 to 199 and 200 to End) (no supplements)

3. Customs and Trade Automated Interface Requirements (CATAIR)

• Appendix B - Valid Codes
• Appendix D - Metric Conversion
• Appendix E - Valid Entry Numbers
• Appendix G - Common Errors
• Appendix H - Census Warning Messages
• Appendix L - Drawback Errors
• Glossary of Terms

4. Instructions for Preparation of CBP Form 7501 (8-30-2005)

5. C-TPAT - Minimum Security Criteria for Customs Brokers (3-20-2007)

6. Submission Changes for Supplemental Information Letters and Post Entry Amendments

7. CBP Directives

• 3510-004, Monetary Guidelines for Setting Bond Amounts
• Amendment to 3510-004 for Certain Merchandise Subject to Antidumping/Countervailing Duty Cases
• 3550-055, Instructions for Deriving Manufacturer/Shipper Identification
• 3550-067, Entry Summary Acceptance and Rejection
• 3550-079A, Ultimate Consignee at time of Entry or Release
• 3560-001A, Census Interface-Processing Procedures
• 5610-002A, Standard Guidelines for the Input of Names and Addresses Into Automated Commercial System (ACS) Files

Note: The use of any versions of the listed references other than those recommended is at the applicant's own risk.

Seeing this list of resources on paper and as a stack of documents on your desk can seem quite overwhelming. We’ll discuss organization of your materials in an upcoming article. Stay tuned to the Boskage Trade News for more helpful hints on studying for the Customs Broker Exam! The next article will cover the second category of exam resources, the “Exam Study Aids”. We also welcome any suggestions on topics you would like to see discussed.

Customs Broker Exam Study Tip 5: Time Management

Now that your study materials and workspace are organized, it is time to discuss time management. Students often feel overwhelmed by the amount of information to be learned in order to pass the exam. Some people feel like they do not have enough time to do all they want to do, so finding additional time to study for the Customs Broker Exam seems like an impossible task.

Have you ever noticed how some people seem to have a natural ability to get things done without appearing stressed out, while others are often late in completing tasks and appear to be rushed all of the time? Have you ever thought that certain people accomplish more because they don’t have to work full time, or they don’t have children or they have more money? Even if those reasons were true, it doesn’t change the fact that everyone has the same amount of time each day. The difference is in how you choose to use your time. Time cannot be bought or saved. Once time is gone, you cannot get it back. Your ability to pass the exam as well as accomplish other goals begins with how you manage your time.

What are some of the causes of time management problems? Three of the most important causes of problems related to time management are procrastination, poor planning and wasting time.

Procrastination is a tendency to avoid a harder or less pleasant task in favor of doing an easier one. Procrastination often results in added stress due to missed deadlines or last minute preparation to meet a deadline. No one needs or wants additional stress and stress is not good for our health. Visualize what will happen if you procrastinate by putting of studying for the exam. Do you see success or failure? Procrastination is not an option when you visualize success!

Poor planning is another culprit that sabotages achievement of success. You must prioritize and create schedules to accomplish the tasks necessary to accomplish your goals. Once you make up our mind to take the exam, you must create a study plan and make it a priority. Of course, most aspiring brokers have full time jobs and personal obligations; however, by creating a plan and schedule that allots specific time for study, you can ensure success by following that schedule. You can’t expect to pass the exam unless you make the effort.

Wasting time is one of the biggest problems exam students face. When too much time is spent doing things that are unproductive, you rob yourself of valuable time that could be spent studying for the exam. It may not be the activity itself that is unproductive, but the amount of time spent doing the activity that creates the problem. If you like watching television, watching one favorite show is not unproductive because it provides relaxation and a sense of well-being. However, watching several hours of television to avoid studying is unproductive. Playing a game on the computer for 15 minutes is not necessarily unproductive because it provides a break from the routine that gives your mind a rest. However, playing computer games for hours robs you of time that could have been spent studying.

What can you do to improve time management in order to pass the Customs Broker’s Exam?

The tools and methods adopted to manage time wisely will largely depend on the amount of individual’s experience with issues covered on the exam, learning styles, ability to grasp and retain new information, work schedule and other personal issues. We have provided a few suggestions below. At the end of this article, you can comment on these and provide some ideas of your own.

· Create a Calendar

Your calendar should allocate time for work, study, exercise, meals, family and personal time. Set a regular time for study. You may want to check off the items completed each day and keep track of time spent on each task.

· Identify Priorities

Prioritize tasks and create a “To Do” List. Compete the most important tasks first. If not all tasks are completed, putting off the least unimportant task isn't procrastination, it's probably good prioritization.

· Learn to Say “NO”

Explain to people that you must study to pass the test and you will be available in a few weeks. Six to eight weeks of intense study is a small commitment of time when you think about the rewards of passing the exam and the amount of free time you will have when you no longer need to study.

· Make Time For Family

Set aside special time for family each week. Remember, quality over quantity. Your family will appreciate the time you spend with them and be more understanding of your need to study when you devote special time for them.

· Set Aside Time for Exercise

Regular exercise reduces stress and promotes good health. Exercise can provide a welcome break from your studies by giving your mind a chance to relax and think of something else. Your choice of exercise can be anything from gardening, walking around the block to a game of softball or a workout at the gym.

· Limit Unproductive Activities

Reduce the amount of time spent on the phone, watching television, reading email, playing computer games, etc. There will be plenty of time for these activities when you finish the exam. Take the necessary phone calls, but do not use the phone as an excuse for not studying.

· Make Good Use of Unproductive Time

1. Waiting

At one time or another, you will find yourself waiting for something. The wait may be anywhere, from the doctor’s office or at an airport, to an unaticipated event, such as a traffic jam. Anticipate circumstances that are likely to create unavoidable delays and be sure to have your notes handy. You can make great use of that time to study. Instead of being upset because you were stuck in the airport for two hours because your plane was late, you can be excited that you were able to devote two more hours to your studies.

2. Commute

Whether it’s by train or car, most people have some type of commute to work. Use the commute time to listen to the audio lectures on CD. Turn that hour spent in a traffic jam into productive study time.

3. Lunch

Do you really need an hour to eat lunch? Consider devoting three of your lunch breaks each week to study. Treat yourself to a nice lunch out at the end of the week.

· Reward Yourself

Set daily, weekly and monthly goals. When you have achieved a goal, reward yourself. It may be as small as allowing yourself 30 minutes of television or spending 30 minutes playing a video game to something more significant such as a vacation or cruise after receiving news you passed the exam.

We welcome your comments on these suggestions and encourage you to add your own ideas to this forum so that other students studying for the exam can benefit from your experiences.

Check the Boskage Trade News regularly for more helpful hints on studying for the Customs Broker Exam and other useful news for international trade professionals! We will explore “Using Previous Exams” in the next study tip.

Potential Answers for April 2008 Customs Broker Exam

As many people sit on pins and needles waiting to see the answers posted for the most recent Customs Broker’s Exam, our very own Wizard has taken the exam and provided a list of possible answers and related regulations where the answers were found. We never know when CBP will post the answers and the wait feels like forever. The answers for the October 2007 Exam were not posted until November 13.

We invite you to post your answers, explanations, arguments and other comments. Obviously, Boskage Commerce Publications cannot guarantee the accuracy of these answers since CBP has the one and only answer key, but the Wizard has an excellent record of achieving a score of better than 90%.

Click HERE to view a copy of the Wizard’s answers for the April 2008 Exam! Additional commentary on the exam will be available to our students soon.

Note: The Wizard had the most difficulty answering the questions marked by an “asterisk” and highlighted in purple.