[Code of Federal Regulations]
[Title 19, Volume 1]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 19CFR111.19]

[Page 467-469]
 
                        TITLE 19--CUSTOMS DUTIES
 
  CHAPTER I--UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY
 
PART 111--CUSTOMS BROKERS--Table of Contents
 
            Subpart B--Procedure To Obtain License or Permit
 
Sec. 111.19  Permits.

    (a) General. Each person granted a broker's license under this part 
will be

[[Page 468]]

concurrently issued a permit for the district in which the port through 
which the license was delivered to the licensee (see Sec. 111.15) is 
located and without the payment of the $100 fee required by 
Sec. 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 Secs. 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 Sec. 111.28(b)(1)(i) for each of those prospective 
employees.
    (c) Fees. Each application for a permit under paragraph (b) or (f) 
of this section must be accompanied by the $100 and $125 fees specified 
in Secs. 111.96(b) and (c). The $125 fee specified in Sec. 111.96(c) 
also must be paid in connection with the issuance of an initial permit 
concurrently with 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

[[Page 469]]

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 Sec. 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 Secs. 111.96(b) and (c) have been paid at the port through 
which the applicant's broker license was delivered (see Sec. 111.15).
    (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.

[65 FR 13891, Mar. 15, 2000, as amended by T.D. 01-14, 66 FR 8767, Feb. 
2, 2001]