FAQs
What is a Customs Broker?
A customs broker is an individual, licensed by the United States federal government, who is allowed to transmit data and information to the government on behalf of others for the purpose of clearing cargo through customs and thereby allowing the final delivery of that cargo to the consignee.
Customs brokers can also serve as the so-called “license qualifier” required for a trade logistics company to be able to clear cargo for its customers.
Should I take the Customs Broker License Examination (CBE)?
Obviously, this question depends on who is asking it. For those wishing to become customs brokers or to start their own customs brokerage, the answer is of course yes—you need a license to become a customs broker and you need to pass the exam to obtain a license.
For those on the opposite side of the spectrum, i.e. those who never want to own or start their own customs brokerage, the answer is not “of course no”; rather, it depends on your specific career objectives. Anyone in the logistics industry who plans to stay in the logistics industry should seriously consider taking the CBE if at all interested. Even, if you never “use” your license, you will acquire substantial benefits from taking and/or passing the exam.
For those who wish they never see a Harmonized Tariff Schedule again in their lives, obviously, forget it. Even if you never get out of the logistics industry, your lack of interest will likely be fatal to your ability to pass.
What if I spend a lot of time and money on trying to pass and never pass?
Not to be cute, but the answer to that question is actually another question: What if you never succeed at anything? If you are the kind of person who requires success from everything you try, then definitely think twice about taking the CBE. The vast majority of exam candidates do not pass on their first or even second attempt. You may wish to take other logistics exams or perhaps even enroll in a trade logistics program that provides you with a certificate or degree upon completion.
There is nothing wrong with knowing your own limit as to how much stress and disappointment you can endure. On the other hand, the upside is pretty substantial for those who do “go for it”, not only with respect to the CBE, but frankly, in one’s life and career generally. Have you ever wondered what it feels like to achieve something you truly did not know you were capable of doing?
SJC believes that most people who work at preparation seriously and sincerely and who stick with it can and eventually will pass the exam, but obviously there is no guarantee. Some folks never pass because life or work interferes. Like many challenges in life, the exam experience is different for everyone. The only guarantees that anyone can give you with respect to the exam are a) it is challenging and b) if you don’t take it, you can’t pass.
What is the best way to prepare for the exam?
Again, the answer is highly dependent on the kind of student you are. If you’re one of the rare, self-starter and intensely disciplined types, you might try to study on your own. You can use any number of commercial study guides in various forms—texts, DVDs, CDs, on-line courses, etc. All you have to do is do an internet search for “customs broker license exam”.
If on the other hand, you’re like most people and have a hard time forcing yourself to do any one thing every day, especially reading and studying, you should probably find a more structured preparation process, such as a study group or a class. Again, there are probably more than one option out there even for customs broker license exam prep classes. In the bay area, there are at least two you can check out, including SJC.
A few things you should keep in mind whatever study method you choose include:
1) You will need an enormous amount of time to prepare adequately. Even if you’ve been in the industry for several years, there is just a tremendous amount of material you will need to digest before the exam. On average, in the three months before the exam, successful candidates report spending from 20 to 25 hours per week.
2) You should practice with actual CBE questions that have been on past exams. There are at least two aspects of practicing questions that should be emphasized. First, you must learn to answer questions at a fairly quick pace. This of course depends largely on how well you know the material, but since, on the actual exam, you will have four hours to complete 80 questions—or approximately 3 minutes per question—you must find a way to manage the questions quickly.
Second, the benefit of practicing questions is mostly derived not from the actual answering of the questions, but the review of the questions after you have answered them. You use answers, both correct and incorrect, to review parts of the regulations or tariff about which you may not have been particularly familiar. Not reviewing your questions after completing them is similar to doing a few push ups for your exercise routine. If you don’t also stretch, lift some weights and maybe even run a mile or two, you’re not getting much out of it.
How can I get started on the journey to passing the CBE?
One way to get started is to download a recent exam from the CBP.gov exam database. Read the instructions and take a look at some of the questions. If you feel this is something you would like to learn more about, ask around to see whether one or more of your colleagues or industry acquaintances knows anything about the exam. Perhaps you can find someone who has recently passed the exam and ask that person for more information.
Your goal will be to learn enough about the exam and preparation process to make a decision on whether you can and want to accommodate the experience into your current schedule and career development. You should also feel free to contact SJC’s principal instructor, K.J. “Keith” Hwang.
What is the most effective way to prepare for the exam if I have a full-time job?
Find out the way of studying which works for you is a must. Fully understand each question’s answer and have your own cross reference will help you save a lot a time.
Your study schedule is not necessary to occupy all you free time, but you must strictly following the schedule everyday. By doing this, you will see your improvement everyday.
Is it possible to pass the exam without going to a prep class?
Of course, you can do independent study if you believe you are truly a self- motivated person; otherwise, taking prep class will be a smart choice. I tried self study years ago and failed, my biggest problem is I could not follow my studying schedule everyday.
By taking prep class, you won’t give up easily and your question will get answer faster. Plus, you can see your pro and con by grouping study, which will help your exam preparation a lot.