Juan Hembra is a customs broker at ABC Brokers. He also owns and operates Hembra Hats, a brick- and-mortar store in Miami that imports and sells “Panama” hats from Ecuador. Before becoming acustoms broker and importer, Juan worked for 10 years as a Border Patrol Agent for U.S. Customsand Border Protection, stationed on the southern border with Mexico. Which of the followingsituations would create a conflict of interest for Juan as a broker?
A. Panama Pete, a California company that imports and sells Panama hats exclusively through an online store, hires Juan as their broker. Panama Pete knows about Hembra Hats and hiresJuan specifically because of his Panama hat expertise and extensive experience importingthem into the United States. an online store, hires Juan as their broker. Panama Pete knows about Hembra Hats and hiresJuan specifically because of his Panama hat expertise and extensive experience importingthem into the United States.
B. Juan files an entry for his sister Julia when she imports several cases of Canadian maple syrup. syrup.
C. Dominique, another broker at ABC who also once worked as a Border Patrol Agent with Juan, helps Juan file Julia’s entry of Canadian maple syrup. Juan shares his fees withDominique.
D. Leo’s Lids, a New York company that imports and sells baseball caps to airport shops, hires Juan as their broker. Leo’s Lids has no knowledge of Hembra Hats and Juan does not tellthem about his business.
E. Juan files an entry for Banana Barn, which imports bananas from Ecuador.
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The Answer is: D
Citation:19 CFR § 111.31(c)
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