Only a 15% pass rate--the licensed Customs broker exam is notoriously difficult: Here’s what you need to know to pass
Introduction
One of the most difficult professional exams to pass nationally, the licensed customs broker exam has been notorious for fielding single-digit pass rates in years past (5.5% in May 2023), but generally hovers around a 15% pass rate.
The 80-question, 4.5 hour exam is administered nationally twice a year, on the fourth Wednesday in April and October, at a major US city or port.
For example, you can take the exam at any large US city or one that includes a major port of entry.
This includes Los Angeles, Portland, Seattle, Tampa Bay, Miami, Chicago, Minneapolis, Atlanta, Charleston, New York, New Jersey, etc.
Thus far, I have sat for the exam in Tampa Bay and Miami.
The exam is administered by Customs and Border Protection (CBP), a division under the Department of Homeland Security, a US federal agency under the Treasury
Department.
The exam content
You are tested on the 19 Code of Federal Regulations, two thick books that govern the rules and regulations pertaining to importing into the US.
Written in legalese, the chapters can be a bit dry and boring, and include basic entry process and procedures, obtaining a power of attorney, getting adequate bonds, the role of customs brokers, penalties, and navigating government agencies.
The second most important set of books is the Harmonized Tariff Schedule (HTS), which is made up of 99 chapters of 10-digit codes assigned to every product imaginable.
This could be raw materials in its natural state, such as salt, steel or masonry to more refined end products such as clothing and electronics.
Classifying products, the process of determining the essential character and assigning its 10-digit number, plays a large part on the exam, ranging from about 9-12 questions.
Here is an example of classification:
The other parts of the exam include: entry, entry process, broker compliance, record keeping, marking, country of origin, bonds, power of attorney, penalties, time-lines, duty drawback, valuation, free trade zones, free trade agreements, and many other import topics.
Here is an example:
One crucial part of the exam is called the practical exercise.
This where CBP devises a real-life scenario to apply your import knowledge.
You will be presented with a situation where products could be manufactured in one country, imported into the US, and transferred from one port to another.
CBP fields questions regarding determining the value of the goods, calculating the duties, warehouse procedures, and correct form submission.
Here is an example:
Essentially, any exam question can be derived from the 19 Code of Federal Regulations, so it takes quite a bit of familiarity to know where to find the information.
What is the exam so difficult?
First is the sheer amount of rules and regulations to become familiar.
The 19 Code of Federal Regulations covers every possible topic pertaining to imports including finance, penalties, becoming a customs broker, operating in a foreign trade zone, duties, penalties and fines, etc.
Second, the federal regulations are written by way of just that, rules and regulations, which don’t make for particularly interesting reading, comprehension and recall.
Third, CBP is known to craft their questions to intentionally throw-off the examinee.
Here is an example of a particularly tricky question:
Fourth, there is a 4.30 hour time-limit to complete the 80-question exam.
Some questions read like a short novel, taking a lot of time and comprehension.
Test questions are designed to trick you, force you to realize what CBP is asking, and know exactly where to find and locate the information in a fast and efficient way possible.
Conclusion
The licensed customs broker exam is not for the faint-hearted.
It takes months and over 100 hours to become familiar with the exam format and the material.
Practically speaking, it will take failing one or two exams before you can succeed on the third or fourth try.
Having a deep enough of a why, persistence, creating a study system (i.e. routine), and sheer will are the only ways to get you across the finish line.
Follow my journey: www.Internationalvinh.com
