19 Code of Federal Regulations (19 CFR): An introduction to US import rules and regulations and how they are applied on the customs broker exam

Introduction

Imagine waking up in the pre-dawn morning, glancing at your smartphone as the alarm goes off, sliding your slippers on and heading to the bathroom to brush your teeth. 

Later, at the breakfast table, you pour yourself a tall glass of orange juice and make a cup of java with a coffee machine, as you enjoy your avocado sandwich at the kitchen table---all while catching up on some quick reading on your Kindle.

Next, as you head over to your home office and turn on the lights, you slip into your office chair and desk where you put your noise-cancelling headphones on, turn your laptop on, and flip the switch to your desk-top speakers.

Every product you touched this morning---your bed sheets, slippers, smartphone, tooth brush, coffee, coffee machine, avocados, kitchen furniture, lighting, laptop, and electronics were all imported. 

What you didn’t realize is that a tedious amount of rules and regulations govern imported goods into the United States that make your day possible.

Every conceivable product---from fruits and vegetables, electronics, textiles, furniture, automobiles, chemicals, chips, machinery, bicycles, computers, and nearly every household item imaginable---are bound by federal regulations called the 19 Code of Federal Regulations.

Customs brokers and trade compliance professionals utilize the 19 CFR to help them navigate the complex process of entering millions of containers of consumer goods at US ports and land border points of entry.

19 CFR explained

Formally titled 19 Code of Federal Regulations is published by the Office of the Federal Register National Archives and Records and is made up of 300 chapters, spanning three volumes.

Chapters cover nearly every conceivable import scenario, rules, regulations and protocols on imported products into the US.

19 CFR are rigorously used on the customs broker exam.

Customs duties consist of three volumes: The first two volumes, parts 0-140 and parts 141-199 contain the regulations in chapter 1: U.S. Customs and Border Protection, Department of Homeland Security; Department of the Treasury. 

The third volume, part 200 to the end, contains the regulations in chapter II---United States International Trade Commission; chapter III---International Trade Administration, Department of Commerce; and chapter IV---U.S. Immigration and Customs Enforcement, Department of Homeland Security. 

For example, chapter 141 is entry of merchandise and chapter 142 entry process cover how to properly make entry of goods into the US.

Chapter 111 covers customs brokers, the process of becoming one, and the duties and responsibilities of becoming fully licensed. 

Chapter 133 includes trademarks, trade names, and copyrights and chapter 134 rules of origin.

And so on and so forth…

Every chapter starts with a table of contents, providing a helpful outline to the dense material matter that follows.

Because of the sheer amount of information written in a legal manner, it is recommended to utilize the 19 CFR as resource reference; knowing where and how to locate information are what really matter. 

How the 19 CFR is applied on the customs broker exam

The customs broker license exam is based on the 19 CFR.

Examinees are expected to reference the three volumes to look up information in order to answer test questions. 

Because it is impossible to memorize the 19 CFR, you will need to create your own quick-reference “cheat sheet” or obtain a table of contents for each chapter title and subject.

Moreover, it is customary to tab each chapter with the chapter number and subject title to look up information quickly.

The customs broker exam will often ask questions testing your ability to know where and how to locate specific detailed information citing the 19 CFR. 

You will need to not only know where to look up the information but will need to interpret what CBP (Customs and Border Protection) is asking. 

The manner in which CBP crafts their questions can often be tricky and misleading, intentionally made to trip up examinees, contributing to the high exam failure rate.

The only way to overcome this is to take as many past customs broker’s exams as possible and to learn why you got certain questions wrong. 

Conclusion

Take a look at your home. As you go about your day, you will realize nearly every product you use is imported from abroad.

The items you take for granted most likely have been manufactured and sourced from overseas.

In order to have them available for your use and enjoyment, trade compliance professionals utilize the 19 CFR to help guide them during the product’s importation into the United States.