[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: 19CFR111.29]

[Page 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. 111.29  Diligence in correspondence and paying monies.

    (a) Due diligence by broker. Each broker must exercise due diligence 
in making financial settlements, in answering correspondence, and in 
preparing or assisting in the preparation and filing of records relating 
to any customs business matter handled by him as a broker. Payment of 
duty, tax, or other debt or obligation owing to the Government for which 
the broker is responsible, or for which the broker has received payment 
from a client, must be made to the Government on or before the date that 
payment is due. Payments received by a broker from a client after the 
due date must be transmitted to the Government within 5 working days 
from receipt by the broker. Each broker must provide a written statement 
to a client accounting for funds received for the client from the 
Government, or received from a client where no payment to the Government 
has been made, or received from a client in excess of the Governmental 
or other charges properly payable as part of the client's customs 
business, within 60 calendar days of receipt. No written statement is 
required if there is actual payment of the funds by a broker.
    (b) Notice to client of method of payment--(1) All brokers must 
provide their clients with the following written notification:

    If you are the importer of record, payment to the broker will not 
relieve you of liability for Customs charges (duties, taxes, or other 
debts owed Customs) in the event the charges are not paid by the broker. 
Therefore, if you pay by check, Customs charges may be paid with a 
separate check payable to the ``U.S. Customs Service'' which will be 
delivered to Customs by the broker.

    (2) The written notification set forth in paragraph (b)(1) of this 
section must be provided by brokers as follows:
    (i) On, or attached to, any power of attorney provided by the broker 
to a client for execution on or after September 27, 1982; and
    (ii) To each active client no later than February 28, 1983, and at 
least once at any time within each 12-month period after that date. An 
active client means a client from whom a broker has obtained a power of 
attorney and for whom the broker has transacted customs business on at 
least two occasions within the 12-month period preceding notification.