19 C.F.R. Subpart B—Procedure To Obtain License or Permit
Title 19 - Customs Duties
(a) Individual. In order to obtain a broker's license, an individual must: (1) Be a citizen of the United States on the date of submission of the application referred to in §111.12(a) and not an officer or employee of the United States Government; (2) Attain the age of 21 prior to the date of submission of the application referred to in §111.12(a); (3) Be of good moral character; and (4) Have established, by attaining a passing (75 percent or higher) grade on a written examination taken within the 3-year period before submission of the application referred to in §111.12(a), that he has sufficient knowledge of customs and related laws, regulations and procedures, bookkeeping, accounting, and all other appropriate matters to render valuable service to importers and exporters. (b) Partnership. In order to qualify for a broker's license, a partnership must have at least one member of the partnership who is a broker. (c) Association or corporation. In order to qualify for a broker's license, an association or corporation must: (1) Be empowered under its articles of association or articles of incorporation to transact customs business as a broker; and (2) Have at least one officer who is a broker. (a) Submission of application and fee. An application for a broker's license must be submitted in duplicate to the director of the port where the applicant intends to do business. The application must be under oath and executed on Customs Form 3124. The application must be accompanied by the $200 application fee prescribed in §111.96(a) and one copy of the appropriate attachment required by the application form (Articles of Agreement or an affidavit signed by all partners, Articles of Agreement of the association, or the Articles of Incorporation). If the applicant proposes to operate under a trade or fictitious name in one or more States, evidence of the applicant's authority to use the name in each of those States must accompany the application. An application for an individual license must be submitted within the 3-year period after the applicant took and passed the written examination referred to in §§111.11(a)(4) and 111.13. The port director may require an individual applicant to provide a copy of the notification that he passed the written examination (see §111.13(e)) and will require the applicant to submit fingerprints on form FD 258 or electronically at the time of filing the application. The port director may reject an application as improperly filed if the application, on its face, demonstrates that one or more of the basic requirements set forth in §111.11 have not been met at the time of filing, in which case the application and fee will be returned to the filer without further action. (b) Posting notice of application. Following receipt of the application, the port director will post a notice that the application has been filed. The notice will be posted conspicuously for at least 2 consecutive weeks in the customhouse at the port and similarly at any other port where the applicant also proposes to maintain an office. The notice also will be posted by appropriate electronic means. The notice will give the name and address of the applicant and, if the applicant is a partnership, association, or corporation, will state the names of all members or officers who are licensed as brokers. The notice will invite written comments or information regarding the issuance of the license. (c) Withdrawal of application. An applicant for a broker's license may withdraw the application at any time prior to issuance of the license by providing written notice of the withdrawal to the port director. However, withdrawal of the application does not entitle the applicant to a refund of the $200 application fee. [T.D. 00–17, 65 FR 13891, Mar. 15, 2000, as amended by T.D. 01–14, 66 FR 8767, Feb. 2, 2001] (a) Scope of examination. The written examination for an individual broker's license will be designed to determine the individual's knowledge of customs and related laws, regulations and procedures, bookkeeping, accounting, and all other appropriate matters necessary to render valuable service to importers and exporters. The examination will be prepared and graded at Customs Headquarters, Washington, DC. (b) Date and place of examination. Written examinations will be given on the first Monday in April and October unless the regularly scheduled examination date conflicts with a national holiday, religious observance, or other foreseeable event and the agency publishes in the (c) Special examination. If a partnership, association, or corporation loses the required member or officer having an individual broker's license (see §§111.11(b) and (c)(2)) and its license would be revoked by operation of law under the provisions of 19 U.S.C. 1641(b)(5) and §111.45(a) before the next scheduled written examination, Customs may authorize a special written examination for a prospective applicant for an individual license who would serve as the required licensed member or officer. Customs may also authorize a special written examination for an individual for purposes of continuing the business of a sole proprietorship broker. A special written examination for an individual may also be authorized by Customs if a brokerage firm loses the individual broker who was exercising responsible supervision and control over an office in another district (see §111.19(d)) and the permit for that additional district would be revoked by operation of law under the provisions of 19 U.S.C. 1641(c)(3) and §111.45(b) before the next scheduled written examination. A request for a special written examination must be submitted to the port director in writing and must describe the circumstances giving rise to the need for the examination. If the request is granted, the port director will notify the prospective examinee of the exact time and place for the examination. If the individual attains a passing grade on the special written examination, the application for the license may be submitted in accordance with §111.12. The examinee will be responsible for all additional costs incurred by Customs in preparing and administering the special examination that exceed the $200 examination fee prescribed in §111.96(a), and those additional costs must be reimbursed to Customs before the examination is given. (d) Failure to appear for examination. If a prospective examinee advises the port director at least 2 working days prior to the date of a regularly scheduled written examination that he will not appear for the examination, the port director will refund the $200 examination fee referred to in paragraph (b) of this section. No refund of the examination fee or additional reimbursed costs will be made in the case of a special written examination provided for under paragraph (c) of this section. (e) Notice of examination result. Customs will provide to each examinee written notice of the result of the examination taken under this section. A failure of an examinee to attain a passing grade on the examination will preclude the submission of an application under §111.12 but will not preclude the examinee from taking an examination again at a later date in accordance with paragraph (b) of this section. (f) Appeal of failing grade on examination. If an examinee fails to attain a passing grade on the examination taken under this section, the examinee may challenge that result by filing a written appeal with Trade Programs, Office of Field Operations, U.S. Customs Service, Washington, DC 20229 within 60 calendar days after the date of the written notice provided for in paragraph (e) of this section. Customs will provide to the examinee written notice of the decision on the appeal. If the Customs decision on the appeal affirms the result of the examination, the examinee may request review of the decision on the appeal by writing to the Secretary of the Treasury within 60 calendar days after the date of the notice of that decision. [T.D. 00–17, 65 FR 13891, Mar. 15, 2000, as amended by T.D. 03–23, 68 FR 31977, May 29, 2003] (a) Referral of application for investigation. The port director will immediately refer an application for an individual, partnership, association, or corporation license to the special agent in charge or other entity designated by Headquarters for investigation and report. (b) Scope of investigation. An investigation under this section will ascertain facts relevant to the question of whether the applicant is qualified and will cover, but need not be limited to: (1) The accuracy of the statements made in the application; (2) The business integrity of the applicant; and (3) When the applicant is an individual (including a member of a partnership or an officer of an association or corporation), the character and reputation of the applicant. (c) Referral to Headquarters. The port director will forward the originals of the application and the report of investigation to the Assistant Commissioner. The port director will also submit his recommendation for action on the application. (d) Additional investigation or inquiry. The Assistant Commissioner may require further investigation to be conducted if additional facts are deemed necessary to pass upon the application. The Assistant Commissioner may also require the applicant (or in the case of a partnership, association, or corporation, one or more of its members or officers) to appear in person before him or before one or more representatives of the Assistant Commissioner for the purpose of undergoing further written or oral inquiry into the applicant's qualifications for a license. If the Assistant Commissioner finds that the applicant is qualified and has paid all applicable fees prescribed in §111.96(a), he will issue a license. A license for an individual who is a member of a partnership or an officer of an association or corporation will be issued in the name of the individual licensee and not in his capacity as a member or officer of the organization with which he is connected. The license will be forwarded to the port director, who will deliver it to the licensee. (a) Notice of denial. If the Assistant Commissioner determines that the application for a license should be denied for any reason, notice of denial will be given by him to the applicant and to the director of the port at which the application was filed. The notice of denial will state the reasons why the license was not issued. (b) Grounds for denial. The grounds sufficient to justify denial of an application for a license include, but need not be limited to: (1) Any cause which would justify suspension or revocation of the license of a broker under the provisions of §111.53; (2) The failure to meet any requirement set forth in §111.11; (3) A failure to establish the business integrity and good character of the applicant; (4) Any willful misstatement of pertinent facts in the application for the license; (5) Any conduct which would be deemed unfair in commercial transactions by accepted standards; or (6) A reputation imputing to the applicant criminal, dishonest, or unethical conduct, or a record of that conduct. (a) By the Assistant Commissioner. Upon the denial of an application for a license, the applicant may file with the Assistant Commissioner, in writing, a request that further opportunity be given for the presentation of information or arguments in support of the application by personal appearance, or in writing, or both. This request must be received by the Assistant Commissioner within 60 calendar days of the denial. (b) By the Secretary. Upon the decision of the Assistant Commissioner affirming the denial of an application for a license, the applicant may file with the Secretary of the Treasury, in writing, a request for any additional review that the Secretary deems appropriate. This request must be received by the Secretary within 60 calendar days of the Assistant Commissioner's affirmation of the denial of the application for a license. (c) By the Court of International Trade. Upon a decision of the Secretary of the Treasury affirming the denial of an application for a license, the applicant may appeal the decision to the Court of International Trade, provided that the appeal action is commenced within 60 calendar days after the date of entry of the Secretary's decision. An applicant who has been denied a license may reapply at any time by complying with the provisions of §111.12. (a) General. Each person granted a broker's license under this part will be concurrently issued a permit for the district in which the port through which the license was delivered to the licensee (see §111.15) is located and without the payment of the $100 fee required by §111.96(b), if it is shown to the satisfaction of the port director that the person intends to transact customs business within that district and the person otherwise complies with the requirements of this part. (b) Submission of application for initial or additional district permit. A broker who intends to conduct customs business at a port within another district for which he does not have a permit, or a broker who was not concurrently granted a permit with the broker's license under paragraph (a) of this section, and except as otherwise provided in paragraph (f) of this section, must submit an application for a permit in a letter to the director of the port at which he intends to conduct customs business. Each application for a permit must set forth or attach the following: (1) The applicant's broker license number and date of issuance; (2) The address where the applicant's office will be located within the district and the telephone number of that office; (3) A copy of a document which reserves the applicant's business name with the state or local government; (4) The name of the individual broker who will exercise responsible supervision and control over the customs business transacted in the district; (5) A list of all other districts for which the applicant has a permit to transact customs business; (6) The place where the applicant's brokerage records will be retained and the name of the applicant's designated recordkeeping contact (see §§111.21 and 111.23); and (7) A list of all persons who the applicant knows will be employed in the district, together with the specific employee information prescribed in §111.28(b)(1)(i) for each of those prospective employees. (c) Fees. Each application for a district permit under paragraph (b) of this section must be accompanied by the $100 and $125 fees specified in §§111.96(b) and (c). In the case of an application for a national permit under paragraph (f) of this section, the $100 fee specified in §111.96(b) and the $125 fee specified in §111.96(c) must be paid at the port through which the applicant's license was delivered (see §111.15) prior to submission of the application. The $125 fee specified in §111.96(c) also must be paid in connection with the issuance of an initial district permit concurrently with the issuance of a license under paragraph (a) of this section. (d) Responsible supervision and control—(1) General. The applicant for a district permit must have a place of business at the port where the application is filed, or must have made firm arrangements satisfactory to the port director to establish a place of business, and must exercise responsible supervision and control over that place of business once the permit is granted. Except as otherwise provided in paragraph (d)(2) of this section, the applicant must employ in each district for which a permit is granted at least one individual broker to exercise responsible supervision and control over the customs business conducted in the district. (2) Exception to district rule. If the applicant can demonstrate to the satisfaction of Customs that he regularly employs at least one individual broker in a larger geographical area in which the district is located and that adequate procedures exist for that individual broker to exercise responsible supervision and control over the customs business conducted in the district, Customs may waive the requirement for an individual broker in that district. A request for a waiver under this paragraph, supported by information on the volume and type of customs business conducted, or planned to be conducted, and supported by evidence demonstrating that the applicant is able to exercise responsible supervision and control through the individual broker employed in the larger geographical area, must be sent to the port director in the district in which the waiver is sought. The port director will review the request for a waiver and make recommendations which will be sent to the Office of Field Operations, Customs Headquarters, for review and decision. A written decision on the waiver request will be issued by the Office of Field Operations and, if the waiver is granted, the decision letter will specify the region covered by the waiver. (e) Action on application; list of permitted brokers. The port director who receives the application will issue a written decision on the district permit application and will issue the district permit if the applicant meets the requirements of paragraphs (b), (c), and (d) of this section. If the port director is of the opinion that the district permit should not be issued, he will submit his written reasons for that opinion to the Office of Field Operations, Customs Headquarters, for appropriate instructions on whether to grant or deny the district permit. Each port director will maintain and make available to the public an alphabetical list of brokers permitted through his port. (f) National permit. A broker who has a district permit issued under paragraph (a) or paragraph (e) of this section may apply for a national permit for the purpose of transacting customs business in any circumstance described in §111.2(b)(2)(i). An application for a national permit under this paragraph must be in the form of a letter addressed to the Office of Field Operations, U.S. Customs Service, Washington, DC 20229, and must: (1) Identify the applicant's broker license number and date of issuance; (2) Set forth the address and telephone number of the office designated by the applicant as the office of record for purposes of administration of the provisions of this part regarding all activities of the applicant conducted under the national permit. That office will be noted in the national permit when issued; (3) Set forth the name, broker license number, office address, and telephone number of the individual broker who will exercise responsible supervision and control over the activities of the applicant conducted under the national permit; and (4) Attach a receipt or other evidence showing that the fees specified in §111.96(b) and (c) have been paid in accordance with paragraph (c) of this section. (g) Review of the denial of a permit—(1) By the Assistant Commissioner. Upon the denial of an application for a permit under this section, the applicant may file with the Assistant Commissioner, in writing, a request that further opportunity be given for the presentation of information or arguments in support of the application by personal appearance, or in writing, or both. This request must be received by the Assistant Commissioner within 60 calendar days of the denial. (2) By the Court of International Trade. Upon a decision of the Assistant Commissioner affirming the denial of an application for a permit under this section, the applicant may appeal the decision to the Court of International Trade, provided that the appeal action is commenced within 60 calendar days after the date of entry of the Assistant Commissioner's decision. [T.D. 00–17, 65 FR 13891, Mar. 15, 2000, as amended by T.D. 01–14, 66 FR 8767, Feb. 2, 2001; CBP Dec. 03–13, 68 FR 43630, July 24, 2003]
Title 19: Customs Duties
PART 111—CUSTOMS BROKERS
Subpart B—Procedure To Obtain License or Permit
§ 111.11 Basic requirements for a license.
§ 111.12 Application for license.
§ 111.13 Written examination for individual license.
§ 111.14 Investigation of the license applicant.
§ 111.15 Issuance of license.
§ 111.16 Denial of license.
§ 111.17 Review of the denial of a license.
§ 111.18 Reapplication for license.
§ 111.19 Permits.
