[Code of Federal Regulations]
[Title 19, Volume 1]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 19CFR111.36]

[Page 464-465]
 
                        TITLE 19--CUSTOMS DUTIES
 
  CHAPTER I--UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY
 
PART 111--CUSTOMS BROKERS--Table of Contents
 
        Subpart C--Duties and Responsibilities of Customs Brokers
 
Sec. 111.36  Relations with unlicensed persons.

    (a) Employment by unlicensed person other than importer. When a 
broker is employed for the transaction of customs business by an 
unlicensed person who is not the actual importer, the broker must 
transmit to the actual importer either a copy of his bill for services 
rendered or a copy of the entry, unless the merchandise was purchased on 
a delivered duty-paid basis or unless the importer has in writing waived 
transmittal of the copy of the entry or bill for services rendered.
    (b) Service to others not to benefit unlicensed person. Except as 
otherwise provided in paragraph (c) of this section, a broker must not 
enter into any agreement with an unlicensed person to transact customs 
business for others in such manner that the fees or other benefits 
resulting from the services rendered for others inure to the benefit of 
the unlicensed person.
    (c) Relations with a freight forwarder. A broker may compensate a 
freight forwarder for referring brokerage business, subject to the 
following conditions:
    (1) The importer or other party in interest is notified in advance 
by the forwarder or broker of the name of the broker selected by the 
forwarder for the handling of his Customs transactions;
    (2) The broker transmits directly to the importer or other party in 
interest:
    (i) A true copy of his brokerage charges if the fees and charges are 
to be collected by or through the forwarder, unless this requirement is

[[Page 465]]

waived in writing by the importer or other party in interest; or
    (ii) A statement of his brokerage charges and an itemized list of 
any charges to be collected for the account of the freight forwarder if 
the fees and charges are to be collected by or through the broker;
    (3) No part of the agreement of compensation between the broker and 
the forwarder, nor any action taken pursuant to the agreement, forbids 
or prevents direct communication between the importer or other party in 
interest and the broker; and
    (4) In making the agreement and in all actions taken pursuant to the 
agreement, the broker remains subject to all other provisions of this 
part.