[Code of Federal Regulations]

[Title 19, Volume 1]

[Revised as of April 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 19CFR111.2]



[Page 507-509]

 

                        TITLE 19--CUSTOMS DUTIES

 

   CHAPTER I--BUREAU OF CUSTOMS AND BORDER PROTECTION, DEPARTMENT OF 

              HOMELAND SECURITY; DEPARTMENT OF THE TREASURY

 

PART 111_CUSTOMS BROKERS--Table of Contents

 

                      Subpart A_General Provisions

 

Sec.  111.2  License and district permit required.



    (a) License--(1) General. Except as otherwise provided in paragraph 

(a)(2) of this section, a person must obtain the license provided for in 

this part in



[[Page 508]]



order to transact customs business as a broker.

    (2) Transactions for which license is not required--(i) For one's 

own account. An importer or exporter transacting customs business solely 

on his own account and in no sense on behalf of another is not required 

to be licensed, nor are his authorized regular employees or officers who 

act only for him in the transaction of such business.

    (ii) As employee of broker--(A) General. An employee of a broker, 

acting solely for his employer, is not required to be licensed where:

    (1) Authorized to sign documents. The broker has authorized the 

employee to sign documents pertaining to customs business on his behalf, 

and has executed a power of attorney for that purpose. The broker is not 

required to file the power of attorney with the port director, but must 

provide proof of its existence to Customs upon request; or

    (2) Authorized to transact other business. The broker has filed with 

the port director a statement identifying the employee as authorized to 

transact customs business on his behalf. However, no statement will be 

necessary when the broker is transacting customs business under an 

exception to the district permit rule.

    (B) Broker supervision; withdrawal of authority. Where an employee 

has been given authority under paragraph (a)(2)(ii) of this section, the 

broker must exercise sufficient supervision of the employee to ensure 

proper conduct on the part of the employee in the transaction of customs 

business, and the broker will be held strictly responsible for the acts 

or omissions of the employee within the scope of his employment and for 

any other acts or omissions of the employee which, through the exercise 

of reasonable care and diligence, the broker should have foreseen. The 

broker must promptly notify the port director if authority granted to an 

employee under paragraph (a)(2)(ii) of this section is withdrawn. The 

withdrawal of authority will be effective upon receipt by the port 

director.

    (iii) Marine transactions. A person transacting business in 

connection with entry or clearance of vessels or other regulation of 

vessels under the navigation laws is not required to be licensed as a 

broker.

    (iv) Transportation in bond. Any carrier bringing merchandise to the 

port of arrival or any bonded carrier transporting merchandise for 

another may make entry for that merchandise for transportation in bond 

without being a broker.

    (v) Noncommercial shipments. An individual entering noncommercial 

merchandise for another party is not required to be a broker, provided 

that the requirements of Sec.  141.33 of this chapter are met.

    (vi) Foreign trade zone activities. A foreign trade zone operator or 

user need not be licensed as a broker in order to engage in activities 

within a zone that do not involve the transfer of merchandise to the 

customs territory of the United States.

    (b) District permit--(1) General. Except as otherwise provided in 

paragraph (b)(2) of this section, a separate permit (see Sec.  111.19) 

is required for each district in which a broker conducts customs 

business.

    (2) Exceptions to district permit rule--(i) National permits. A 

national permit issued to a broker under Sec.  111.19(f) will constitute 

sufficient permit authority for the broker to act in any of the 

following circumstances:

    (A) Employee working in client's facility (employee implant). When a 

broker places an employee in the facility of a client for whom the 

broker is conducting customs business at one or more other locations 

covered by a district permit issued to the broker, and provided that the 

employee's activities are limited to customs business in support of that 

broker and on behalf of that client but do not involve the filing of 

entries or other documents with Customs, the broker need not obtain a 

permit for the district within which the client's facility is located;

    (B) Electronic drawback claims. A broker may file electronic 

drawback claims in accordance with the electronic filing procedures set 

forth in part 143 of this chapter even though the broker does not have a 

permit for the district in which the filing is made;

    (C) NCAP participation. A broker who is a participant in the 

National Customs Automation Program (NCAP)



[[Page 509]]



may electronically file entries for merchandise from a remote location 

and may electronically transact other customs business that is provided 

for and operational under the NCAP even though the entry is filed, or 

the other customs business is transacted, within a district for which 

the broker does not have a district permit; and

    (D) Representations after entry summary acceptance. After the entry 

summary has been accepted by Customs, and except when a broker filed the 

entry as importer of record, a broker who did not file the entry, but 

who has been appointed by the importer of record, may orally or in 

person or in writing or electronically represent the importer of record 

before Customs on any issue arising out of that entry or concerning the 

merchandise covered by that entry even though the broker does not have a 

permit for the district within which those representations are made, 

provided that, if requested by Customs, the broker submits appropriate 

evidence of his right to represent the client on the matter at issue.

    (ii) Filing of drawback claims. A broker granted a permit for one 

district may file drawback claims manually or electronically at the 

drawback office that has been designated by Customs for the purpose of 

filing those claims, and may represent his client before that office in 

matters concerning those claims, even though the broker does not have a 

permit for the district in which that drawback office is located.



[T.D. 00-17, 65 FR 13891, Mar. 15, 2000, as amended by CBP Dec. 03-15, 

68 FR 47460, Aug. 11, 2003]