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)?
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 necessarily “no, you should not bother to take the exam”. 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 in the subject matter. Even, if you never “use” your license, you will acquire substantial benefits from taking and/or passing the exam.
The ability to pass the CBE does not make you a capable customs broker; however it does indicate that you have, at least at the time of the exam, a level of knowledge and understanding of U.S. customs regulations that the U.S. government deems sufficiently “valuable” for purposes of assisting others with customs transactions. This governmental imprimatur is often used by the trade industry as a proxy for customs competence and therefore a license can add substance to your resume or employment application.
On the other hand, those who wish they would never have to see a tariff number again for the rest of their lives should avoid the exam obviously. Even if you never get out of the logistics industry, your lack of interest will likely be fatal to your ability to pass.
Are there other credentialing pathways that would be relevant to the brokerage or logistics industry?
Yes. If you are not interested in or ready (for whatever reason) for dealing with the relatively burdensome challenge of the license exam, there are other options that may serve your job or career development purposes. For example, you could take logistics courses either in person at local colleges or other educational outlets, some that may lead to a degree or include internship experience. You could also obtain certification through relevant associations. For example, the National Customs Broker & Forwarder Association of America (NCBFAA) offers a Certified Customs Specialist certification through completion of an on-line course and other requirements.
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. First, if you take the right approach to preparing for the exam, you will learn a tremendous amount about U.S. customs laws, concepts and regulations. For example, if you have been an entry writer for a few years, you will discover the “why” behind much of what you do on a daily basis and this will help you to become more professional and confident in your work.
Second, passing a tough qualifying exam requires the kind of discipline and hard work that is inherently admirable. Other than as a job qualification, no one, frankly speaking, gives a you know what if you take the exam, pass the exam or take it multiple times without passing. (If they do, they probably have never taken it themselves, so they don’t count.) Like a marathon, the exam represents a personal challenge, one that unfortunately can take a lot of you, but ultimately is a solitary experience. You compete against yourself, and when you reach the goal line, the sense of accomplishment is that much more satisfying.
SJC believes that most people who work at preparation seriously and sincerely and who stick with it can and eventually will pass the exam. 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 are 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 are 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 studying.
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?
Quit your job. Seriously, those who prepare for the exam effectively while holding a brain taxing job like entry writer or brokerage supervisor deserve a special order of merit. Reading a newspaper after coming home from a full day of detail oriented work is unappetizing, so how in the world are you going to read 19 CFR provisions about the difference between a Certificate of Delivery and a Certificate of Manufacture & Delivery?
Abandoning the notion that this task is going to be anything but easy, you should consider finding those “soft” moments in your schedule when you are most capable of tolerating dry–sometimes VERY dry reading. For some, these moments are early in the morning; for others it is late at night after everyone else has gone to bed. A few lucky folks can squeeze in an hour at lunch or in the late afternoon at work (with supervisor approval). Be vigilant for these opportunities and be extremely stingy about using them for anything other than studying.
Over a three week period, you should be able to establish a routine by which you can consistently string together these 1 to 2 hour periods on weekdays and longer periods on the weekends. Again, the word “no” has to be on your lips at all times to fend off attacks on your “soft” time, as in “no, I can’t go watch that movie with you” and “no, I can’t make you breakfast this morning”. You will, by the second month or so, not only be able to avoid these temptations more easily, but there will be less of them (because everyone knows not to ask).
Just as in training for anything, you will hit your stride at a certain point and you will find yourself easily devoting 3-4 hours per weekday and 8-10 hours per weekend day on studying. Now, the enemy becomes burn out. You will need to pace yourself and learn to take meaningful breaks. You will need to remember to keep up your health (without which, you should STOP studying and fully recover before starting again).
Another tip: manage your work schedule and your work obligations in a way that accommodates for as much time off and as much pressure avoidance during the month or so before the exam. For example, if it is at all possible to deal with a major project or business travel after the exam, make the necessary arrangement. Do everything you can to clear your schedule both at home and at work for the period leading up to the exam.
Is it possible to pass the exam without going to a prep class?
Yes, it is possible. It is even possible to pass the exam without using any commercial study assistance. You just have to be enormously tenacious and disciplined, and you may have to take the exam several times. But, it can be done. The greatest challenge for independent learners is their inability to know what materials are likely to be tested. Using previously given examinations posted on CBP.gov as well as obtaining commercial guidelines can help ameliorate this problem.
Another challenge is the relative impenetrability of some customs topics such as Classification and Valuation. Again, commercial study guides and other materials (DVDs, on-line lessons, etc.) can help with this issue. Forming a study group with others can also yield benefits and progress.
Joining a class is especially beneficial to those who do best in a structured environment in which lessons are organized and supplied in a fully supported manner. But, live classes can have drawbacks as well. SJC has found that those who do not have the follow-through commitment to adhere to class expectations actually not only do not benefit from the class but also hinder the learning of others.