Reference

Customs broker exam glossary

The trade, tariff, and regulation terms you will meet on the customs broker exam, defined in plain English. 30 terms.

19 CFR (Title 19, Code of Federal Regulations): The body of United States customs regulations, published by the Office of the Federal Register. It covers entry, valuation, drawback, and broker licensing, among much else. Candidates cite it constantly on the exam, so knowing which Part governs a topic saves lookup time. Learn more: drill 19 CFR lookups
Accelerated Disposition: A protestant's request under 19 CFR 174.22 that speeds up a protest decision: if CBP does not act within 30 days of the request being mailed, the protest is deemed denied at the close of the 30th day, which opens the door to further legal review sooner. Learn more: read the protests guide
Antidumping Duty (ADD) and Countervailing Duty (CVD): Extra duties assessed under 19 USC 1673 when the Commerce Department finds foreign merchandise sold at less than fair value (antidumping) or unfairly subsidized (countervailing), and the ITC finds material injury to a U.S. industry. CBP does not set the rate or find injury; it suspends liquidation and collects cash deposits on covered entries. Learn more: read the AD/CVD guide
Country of Origin Marking: The 19 CFR Part 134 requirement that every article of foreign origin be marked conspicuously, legibly, indelibly, and permanently with its English country of origin so an ultimate purchaser can identify it. Goods entered without the required marking draw a 10 percent additional duty on the final appraised value, unless a J-list exception applies. Learn more: read the marking guide
Customs Bond: A contract with a surety, filed under 19 CFR Part 113, that guarantees CBP will collect its duties and compliance even if the importer will not pay. A single transaction bond covers one entry; a continuous bond covers every entry for a year, renews automatically, and has a minimum amount of $100. Learn more: read the customs bonds guide
Customs Broker: A person or firm licensed by CBP to transact customs business on behalf of importers, such as filing entries and paying duties. Individual licensing requires passing the Customs Broker License Examination; the licensing rules are in 19 CFR Part 111.
Customs Valuation: The rules for determining the dutiable value of imported goods, based primarily on transaction value with defined additions and deductions. The valuation provisions live in 19 CFR Part 152 and form one of the six exam categories tested on the customs broker exam.
Drawback: A refund of duties, taxes, and fees paid on imported goods that are later exported or destroyed. The modernized drawback rules live in 19 CFR Part 190 and are one of the six exam categories, so candidates need to locate the governing provisions quickly under time pressure.
Enforce and Protect Act (EAPA): The 19 CFR Part 165 process CBP uses to investigate suspected evasion of an antidumping or countervailing duty order, triggered by a properly filed allegation. CBP must decide whether to initiate within 15 business days, may impose interim measures within 90 days, and must determine the case within 300 days, extendable to 360. Learn more: read the AD/CVD guide
Entry Summary: The documentation and process by which an importer declares goods to CBP and calculates the duties owed, historically filed on CBP Form 7501. Entry and entry summary requirements sit largely in 19 CFR Part 141 and related parts and are a core exam category.
Formal Entry and Informal Entry: The two entry tracks under 19 CFR Parts 141 to 143. Formal entry, generally required above $2,500 in value, requires a bond and a full entry summary. Informal entry covers lower-value shipments (informal entry procedures generally apply at or under $2,500) with a simpler process and no bond. Learn more: read the entry process guide
GRI (General Rules of Interpretation): The six numbered rules, plus the Additional U.S. Rules of Interpretation, that govern how a good is classified in the HTSUS. They are applied in order: GRI 1 (terms of headings and notes) is tried first, and later rules apply only when earlier ones do not resolve the classification. Learn more: drill the GRI order
HTSUS (Harmonized Tariff Schedule of the United States): The official United States import tariff schedule, published by the U.S. International Trade Commission (USITC). It organizes goods into 22 Sections and 99 Chapters and sets the duty rate for each classification. On the customs broker exam it is an open-book reference you must navigate quickly. Learn more: see a worked classification walkthrough
J-List: The 17 general exceptions (lettered (a) through (q)) to the country-of-origin marking requirement, listed in 19 CFR 134.32. Articles on the J-list, such as certain natural products and articles too small to mark, do not need to carry a country-of-origin marking even though they are otherwise required to. Learn more: read the marking guide
Liquidation: CBP's final calculation and assessment of the duties, taxes, and fees owed on an entry. Liquidation closes out the entry unless it is extended, suspended, or protested, and the timelines and procedures are set in 19 CFR Part 159.
Modernized Drawback: The TFTEA-era drawback regime in 19 CFR Part 190, applying to claims filed on or after February 24, 2018, refunding up to 99 percent of duties, taxes, and fees on goods later exported or destroyed. It groups claims into manufacturing, unused-merchandise, and rejected-merchandise drawback, each filed within 5 years of import. Learn more: read the modernized drawback guide
National Permit: The single permit under 19 CFR 111.19 that lets a licensed customs broker transact customs business anywhere in the United States, replacing the older district-by-district permit system. The individual broker who qualifies the permit must exercise responsible supervision and control over the work done under it. Learn more: read the Part 111 guide
Part 111 (Customs Broker Regulations): The subpart of Title 19 CFR (19 CFR Part 111) that licenses and governs customs brokers: who may hold a license or national permit, responsible supervision and control, recordkeeping, the triennial status report, continuing education, and the conduct grounds that can cost a broker the license. Broker compliance questions almost always trace back to this Part. Learn more: read the Part 111 guide
Prior Disclosure: A voluntary, written disclosure to CBP of a customs violation, made before or without knowledge that a formal investigation has begun, under 19 CFR 162.74. A valid prior disclosure sharply cuts the 19 USC 1592 penalty, to interest only on the duty loss for negligence and gross negligence, and to a much lower multiple for fraud. Learn more: read the penalties and prior disclosure guide
Protest: The formal, written challenge to a CBP decision, most often a liquidation, filed under 19 CFR Part 174 within 180 days of the protested decision. It may be filed by the importer, consignee, surety, or another party in interest, and can request further review for novel or inconsistent decisions. Learn more: read the protests guide
Recordkeeping ((a)(1)(A) List): The obligation under 19 CFR Part 163 and 19 USC 1509 to keep records relating to an import, generally for 5 years from the date of entry. The core required set is the (a)(1)(A) list, published as the appendix to Part 163; failing to produce a listed record on demand can draw a penalty and reliquidation at a higher duty rate. Learn more: read the recordkeeping guide
Reliquidation: A correction to an entry's duty after liquidation has already occurred, through a timely protest, CBP's own voluntary reliquidation (within 90 days of the original liquidation under 19 USC 1501), drawback, or a Miscellaneous Tariff Bill duty suspension. It is one of the few ways duty moves after the 1-year liquidation clock closes. Learn more: read the liquidation and duty relief guide
Responsible Supervision and Control: The standard, not a fixed checklist, that a customs broker must meet in overseeing employees and customs work under 19 CFR 111.1 and 111.28: enough supervision to ensure the proper transaction of customs business and the same quality of service the broker itself must provide. CBP weighs staffing levels, training, audit frequency, and reject rates when judging it. Learn more: read the Part 111 guide
Section and Chapter Notes: Legally binding notes at the head of each HTSUS Section and Chapter that define terms, include goods, or exclude them from a classification. They frequently decide a classification outright, so candidates lose time when they skip them, and drilling which note governs is a core lookup skill. Learn more: drill the notes
Special Entry: An entry type beyond a plain consumption entry: a bonded warehouse entry (Part 144), a foreign-trade zone admission (Part 146), a temporary importation under bond (TIB, HTSUS heading 9813), or an in-bond movement (Part 18). Each defers or eliminates duty under its own deadlines and conditions. Learn more: read the special entry types guide
Tariff Classification: The process of assigning an imported good its correct HTSUS heading and subheading, which determines the duty rate. Classification is decided by applying the General Rules of Interpretation together with the Section, Chapter, and Additional U.S. Notes, and it is the single most heavily tested exam skill. Learn more: see a worked GRI 3(b) walkthrough
Trademark Recordation: The 19 CFR Part 133 process by which a trademark, trade name, or copyright owner records their right with CBP for a $190 fee per mark per class, valid 20 years concurrent with the USPTO registration. A recorded right lets CBP detain and seize infringing or counterfeit imports at the border. Learn more: read the IPR enforcement guide
Transaction Value: The first and most-used method in the six-method customs valuation hierarchy (19 USC 1401a): the price actually paid or payable for merchandise when sold for export to the United States, plus five statutory additions (packing, selling commissions, assists, royalties, and resale proceeds). CBP moves to the next method only when transaction value cannot be used. Learn more: read the valuation guide
Triennial Status Report: The status report and $100 fee every individual customs broker must file under 19 CFR 111.30, due by March 1 in the reporting year that falls every third year. A broker who misses the deadline has the license suspended by operation of law, and if it is still not cured, revoked. Learn more: read the Part 111 guide
USMCA: The United States-Mexico-Canada Agreement, the exam's main preferential trade program, governed by 19 CFR Part 182. The importer, exporter, or producer may self-certify origin, and an importer who missed the preference at entry may file a post-importation refund claim within 1 year of importation. Learn more: read the trade agreements guide