[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: 19CFR111.36]



[Page 519-520]

 

                        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.  111.36  Relations with unlicensed persons.



    (a) Employment by unlicensed person other than importer. When a 

broker is employed for the transaction of customs business by an 

unlicensed person who is not the actual importer, the broker must 

transmit to the actual importer either a copy of his bill for services 

rendered or a copy of the entry, unless the merchandise was purchased on 

a delivered duty-paid basis or unless the importer has in writing waived 

transmittal of the copy of the entry or bill for services rendered.

    (b) Service to others not to benefit unlicensed person. Except as 

otherwise provided in paragraph (c) of this section, a broker must not 

enter into any agreement with an unlicensed person to transact customs 

business for others in such manner that the fees or other benefits 

resulting from the services rendered for others inure to the benefit of 

the unlicensed person.

    (c) Relations with a freight forwarder. A broker may compensate a 

freight forwarder for referring brokerage business, subject to the 

following conditions:

    (1) The importer or other party in interest is notified in advance 

by the forwarder or broker of the name of the broker selected by the 

forwarder for the handling of his Customs transactions;

    (2) The broker transmits directly to the importer or other party in 

interest:

    (i) A true copy of his brokerage charges if the fees and charges are 

to be collected by or through the forwarder, unless this requirement is



[[Page 520]]



waived in writing by the importer or other party in interest; or

    (ii) A statement of his brokerage charges and an itemized list of 

any charges to be collected for the account of the freight forwarder if 

the fees and charges are to be collected by or through the broker;

    (3) No part of the agreement of compensation between the broker and 

the forwarder, nor any action taken pursuant to the agreement, forbids 

or prevents direct communication between the importer or other party in 

interest and the broker; and

    (4) In making the agreement and in all actions taken pursuant to the 

agreement, the broker remains subject to all other provisions of this 

part.