Supporting Law and Reg

§ 111.3

19 CFR Ch. I (4–1–04 Edition)

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]

§ 111.3

[Reserved]

§ 111.4 Transacting customs business
without a license.
Any person who intentionally transacts customs business, other than as
provided in § 111.2(a)(2), without holding a valid broker’s license, will be liable for a monetary penalty for each
such transaction as well as for each
violation of any other provision of 19
U.S.C. 1641. The penalty will be assessed in accordance with subpart E of
this part.
§ 111.5 Representation before Government agencies.
(a) Agencies within the Treasury Department. A broker who represents a
client in the importation or exportation of merchandise may represent
the client before the Treasury Department or any representative of the
Treasury Department on any matter
concerning that merchandise.
(b) Agencies not within the Treasury
Department. In order to represent a client before any agency not within the
Treasury Department, a broker must
comply with any regulations of that
agency governing the appearance of
representatives before it.

Subpart B—Procedure To Obtain
License or Permit
§ 111.11 Basic requirements for a license.
(a) Individual. In order to obtain a
broker’s license, an individual must:
(1) Be a citizen of the United States
on the date of submission of the application referred to in § 111.12(a) and not
an officer or employee of the United
States Government;
(2) Attain the age of 21 prior to the
date of submission of the application
referred to in § 111.12(a);
(3) Be of good moral character; and
(4) Have established, by attaining a
passing (75 percent or higher) grade on
a written examination taken within
the 3-year period before submission of

the application referred to in § 111.12(a),
that he has sufficient knowledge of
customs and related laws, regulations
and procedures, bookkeeping, accounting, and all other appropriate matters
to render valuable service to importers
and exporters.
(b) Partnership. In order to qualify for
a broker’s license, a partnership must
have at least one member of the partnership who is a broker.
(c) Association or corporation. In order
to qualify for a broker’s license, an association or corporation must:
(1) Be empowered under its articles of
association or articles of incorporation
to transact customs business as a
broker; and
(2) Have at least one officer who is a
broker.
§ 111.12 Application for license.
(a) Submission of application and fee.
An application for a broker’s license
must be submitted in duplicate to the
director of the port where the applicant intends to do business. The application must be under oath and executed on Customs Form 3124. The application must be accompanied by the
$200 application fee prescribed in
§ 111.96(a) and one copy of the appropriate attachment required by the application form (Articles of Agreement
or an affidavit signed by all partners,
Articles of Agreement of the association, or the Articles of Incorporation).
If the applicant proposes to operate
under a trade or fictitious name in one
or more States, evidence of the applicant’s authority to use the name in
each of those States must accompany
the application. An application for an
individual license must be submitted
within the 3-year period after the applicant took and passed the written examination referred to in §§ 111.11(a)(4)
and 111.13. The port director may require an individual applicant to provide a copy of the notification that he
passed the written examination (see
§ 111.13(e)) and will require the applicant to submit fingerprints on form FD
258 or electronically at the time of filing the application. The port director
may reject an application as improperly filed if the application, on its face,
demonstrates that one or more of the
basic requirements set forth in § 111.11

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Bureau of Customs and Border Protection, DHS, Treasury
have not been met at the time of filing,
in which case the application and fee
will be returned to the filer without
further action.
(b) Posting notice of application. Following receipt of the application, the
port director will post a notice that the
application has been filed. The notice
will be posted conspicuously for at
least 2 consecutive weeks in the customhouse at the port and similarly at
any other port where the applicant also
proposes to maintain an office. The notice also will be posted by appropriate
electronic means. The notice will give
the name and address of the applicant
and, if the applicant is a partnership,
association, or corporation, will state
the names of all members or officers
who are licensed as brokers. The notice
will invite written comments or information regarding the issuance of the license.
(c) Withdrawal of application. An applicant for a broker’s license may withdraw the application at any time prior
to issuance of the license by providing
written notice of the withdrawal to the
port director. However, withdrawal of
the application does not entitle the applicant to a refund of the $200 application fee.
[T.D. 00–17, 65 FR 13891, Mar. 15, 2000, as
amended by T.D. 01–14, 66 FR 8767, Feb. 2,
2001]

§ 111.13 Written examination for individual license.
(a) Scope of examination. The written
examination for an individual broker’s
license will be designed to determine
the individual’s knowledge of customs
and related laws, regulations and procedures, bookkeeping, accounting, and
all other appropriate matters necessary to render valuable service to importers and exporters. The examination
will be prepared and graded at Customs
Headquarters, Washington, DC.
(b) Date and place of examination.
Written examinations will be given on
the first Monday in April and October
unless the regularly scheduled examination date conflicts with a national
holiday, religious observance, or other
foreseeable event and the agency publishes in the FEDERAL REGISTER an appropriate notice of a change in the examination date. An individual who in-

§ 111.13

tends to take the written examination
must so advise the port director in
writing at least 30 calendar days prior
to the scheduled examination date and
must remit the $200 examination fee
prescribed in § 111.96(a) at that time.
The port director will give notice of
the exact time and place for the examination.
(c) Special examination. If a partnership, association, or corporation loses
the required member or officer having
an individual broker’s license (see
§§ 111.11(b) and (c)(2)) and its license
would be revoked by operation of law
under the provisions of 19 U.S.C.
1641(b)(5) and § 111.45(a) before the next
scheduled written examination, Customs may authorize a special written
examination for a prospective applicant for an individual license who
would serve as the required licensed
member or officer. Customs may also
authorize a special written examination for an individual for purposes of
continuing the business of a sole proprietorship broker. A special written
examination for an individual may also
be authorized by Customs if a brokerage firm loses the individual broker
who was exercising responsible supervision and control over an office in another district (see § 111.19(d)) and the
permit for that additional district
would be revoked by operation of law
under the provisions of 19 U.S.C.
1641(c)(3) and § 111.45(b) before the next
scheduled written examination. A request for a special written examination
must be submitted to the port director
in writing and must describe the circumstances giving rise to the need for
the examination. If the request is
granted, the port director will notify
the prospective examinee of the exact
time and place for the examination. If
the individual attains a passing grade
on the special written examination, the
application for the license may be submitted in accordance with § 111.12. The
examinee will be responsible for all additional costs incurred by Customs in
preparing and administering the special examination that exceed the $200
examination
fee
prescribed
in
§ 111.96(a), and those additional costs
must be reimbursed to Customs before
the examination is given.

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