Question 40
Domain 6: Broker Compliance and RecordkeepingWhich of the following would NOT constitute grounds sufficient to deny an application for a customs broker’s license?
Correct answer: D
Explanation
A customs broker license applicant must be a U.S. citizen, but the rule does not require citizenship for any minimum period before filing. Denial grounds focus on disqualifying facts such as lack of citizenship, not on being a citizen for only one year before the application date.
Why each option is right or wrong
A. Any conduct which would be deemed unfair or detrimental in commercial transactions by accepted standards.
Unfair or commercially improper conduct can show unfitness and support denial of a broker license.
B. A failure to establish the good character and reputation of the applicant.
Good character and reputation are core licensing qualifications; failure to prove them is disqualifying.
C. Being 20 years old on the date of submission of the broker's license application.
Being 20 means the applicant is below the minimum age requirement for licensure.
D. Being a citizen of the United States for only one year prior to the date of submission of the broker’s license application.
19 CFR § 111.11(a)(2) requires an applicant for a customs broker’s license to be a U.S. citizen, but it does not impose any minimum period of prior citizenship before the application is filed. By contrast, denial grounds under 19 CFR § 111.16 focus on failure to meet the statutory qualifications or on disqualifying conduct, so being a citizen for only 1 year is not, by itself, a basis to refuse the license.