[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: 19CFR111.28]



[Page 516-517]

 

                        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 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



[[Page 517]]



``principal'' means any person having at least a 5 percent capital, 

beneficiary or other direct or indirect interest in the business of a 

broker.