[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: 19CFR111.28]

[Page 471-472]
 
                        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. 111.28  Responsible supervision.

    (a) General. Every individual broker operating as a sole proprietor 
and every licensed member of a partnership that is a broker and every 
licensed officer of an association or corporation that is a broker must 
exercise responsible supervision and control (see Sec. 111.1) over the 
transaction of the customs business of the sole proprietorship, 
partnership, association, or corporation.
    (b) Employee information--(1) Current employees--(i) General. Each 
broker must submit, in writing, to the director of each port at which 
the broker intends to transact customs business, a list of the names of 
persons currently employed by the broker at that port. The list of 
employees must be submitted upon issuance of a permit for an additional 
district under Sec. 111.19, or upon the opening of an office at a port 
within a district for which the broker already has a permit, and before 
the broker begins to transact customs business as a broker at the port. 
For each employee, the broker also must provide the social security 
number, date and place of birth, current home address, last prior home 
address, and, if the employee has been employed by the broker for less 
than 3 years, the name and address of each former employer and dates of 
employment for the 3-year period preceding current employment with the 
broker. After the initial submission, an updated list, setting forth the 
name, social security number, date and place of birth, and current home 
address of each current employee, must be submitted with the status 
report required by Sec. 111.30(d).
    (ii) New employees. In the case of a new employee, the broker must 
submit to the port director the written information required under 
paragraph (b)(1)(i) of this section within 10 calendar days after the 
new employee has been employed by the broker for 30 consecutive days.
    (2) Terminated employees. Within 30 calendar days after the 
termination of employment of any person employed longer than 30 
consecutive days, the broker must submit the name of the terminated 
employee, in writing, to the director of the port at which the person 
was employed.
    (3) Broker's responsibility. Notwithstanding a broker's 
responsibility for providing the information required in paragraph 
(b)(1) of this section, in the absence of culpability by the broker, 
Customs will not hold him responsible for the accuracy of any 
information that is provided to the broker by the employee.
    (c) Termination of qualifying member or officer. In the case of an 
individual broker who is a qualifying member of a partnership for 
purposes of Sec. 111.11(b) or who is a qualifying officer of an 
association or corporation for purposes of Sec. 111.11(c)(2), that 
individual broker must immediately provide written notice to the 
Assistant Commissioner when his employment as a qualifying member or 
officer terminates and must send a copy of the written notice to the 
director of each port through which a permit has been granted to the 
partnership, association, or corporation.
    (d) Change in ownership. If the ownership of a broker changes and 
ownership shares in the broker are not publicly traded, the broker must 
immediately provide written notice of that fact to the Assistant 
Commissioner and must send a copy of the written notice to the director 
of each port through which a permit has been granted to the broker. When 
a change in ownership results in the addition of a new principal to the 
organization, and whether or not ownership shares in the broker are 
publicly traded, Customs reserves the right to conduct a background 
investigation on the new principal. The port director will notify the 
broker if Customs objects to the new principal, and the broker will be 
given a reasonable period of time to remedy the situation. If the 
investigation uncovers information which would have been the basis for a 
denial of an application for a broker's license and the principal's 
interest in the broker is not terminated to the satisfaction of the port 
director, suspension or revocation proceedings may be initiated under 
subpart D of this part. For purposes of this paragraph, a ``principal'' 
means any person having at least a 5 percent capital, beneficiary

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or other direct or indirect interest in the business of a broker.