[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: 19CFR111.42]

[Page 465-466]
 
                        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. 111.42  Relations with person who is notoriously disreputable or whose license is under suspension, canceled ``with prejudice,'' or revoked.

    (a) General. Except as otherwise provided in paragraph (b) of this 
section, a broker must not knowingly and directly or indirectly:
    (1) Accept employment to effect a Customs transaction as associate, 
correspondent, officer, employee, agent, or subagent from any person who 
is notoriously disreputable or whose broker license was revoked for any 
cause or is under suspension or was cancelled ``with prejudice;''
    (2) Assist in the furtherance of any customs business or 
transactions of any person described in paragraph (a)(1) of this 
section;
    (3) Employ, or accept assistance in the furtherance of any customs 
business or transactions from, any person described in paragraph (a)(1) 
of this section, without the approval of the Assistant Commissioner (see 
Sec. 111.79);
    (4) Share fees with any person described in paragraph (a)(1) of this 
section; or
    (5) Permit any person described in paragraph (a)(1) of this section 
to participate, directly or indirectly and

[[Page 466]]

whether through ownership or otherwise, in the promotion, control, or 
direction of the business of the broker.
    (b) Client exception. Nothing in this section will prohibit a broker 
from transacting customs business on behalf of a bona fide importer or 
exporter who may be notoriously disreputable or whose broker license is 
under suspension or was cancelled ``with prejudice'' or revoked.