- To : Automated Broker Interface
Subject: BROKER COMPLIANCE
CUSTOMS AND BORDER PROTECTION (CBP) ISSUES CUSTOMS BROKER LICENSES
TO PERSONS (I.E., INDIVIDUALS, PARTNERSHIPS, ASSOCIATIONS, AND
CORPORATIONS) WHO HAVE SUCCESSFULLY SATISFIED THE REGULATORY AND
STATUTORY REQUIREMENTS. RECENTLY, CBP HAS IDENTIFIED ACTIVITIES IN
THE BROKERAGE COMMUNITY THAT WARRANT IMMEDIATE CORRECTIVE ACTION.
· A CUSTOMS BROKER LICENSE MAY NOT BE TRANSFERRED AMONG PERSONS.
FOR EXAMPLE, AN INDIVIDUALLY LICENSED CUSTOMS BROKER MAY NOT SOLICIT
AND/OR ENGAGE IN "CUSTOMS BUSINESS" AS A CORPORATE CUSTOMS BROKER
WITHOUT A CORPORATE CUSTOMS BROKER'S LICENSE.
· UNLICENSED PERSONS MAY NOT USE A CUSTOMS BROKER'S FILER CODE, PERMIT
AND/OR LICENSE FOR THE PURPOSE OF SOLICITING AND/OR ENGAGING IN
"CUSTOMS BUSINES." FOR EXAMPLE, AN UNLICENSED FREIGHT FORWARDER
WHO EMPLOYS AND UTILIZES A CUSTOMS BROKER'S LICENSE, PERMIT, AND/OR
FILER CODE MAY NOT ENGAGE IN "CUSTOMS BUSINESS" OR PRESENT ITSELF AS A
CUSTOMS BROKER.
PURSUANT TO 19 U.S.C. 1641(B)(6), UNLICENSED PERSONS WHO TRANSACT
"CUSTOMS BUSINESS" WITHOUT HOLDING A VALID BROKER"S LICENSE ARE LIABLE
FOR A MONETARY PENALTY NOT TO EXCEED $10,000 FOR EACH SUCH TRANSACTION.
IN ADDITION, A LICENSED CUSTOMS BROKER WHO ALLOWS AN UNLICENSES PERSON
TO USE HIS OR HER CUSTOMS BROKER'S LICENSE OR FILER CODE FOR PURPOSES
OF ENGAGING IN "CUSTOMS BUSINESS" SUBJECTS THE CUSTOMS BROKER TO
MONETARY PENALTIES AND REFUSAL BY THE PORT DIRECTOR OF THE CUSTOM'S
BROKER'S USE OF HIS OR HER ASSIGNED ENTRY FILER CODE.
MEMBERS OF THE TRADE COMMUNITY (E.G., LICENSED AND UNLICENSED PERSONS)
WHO ARE ENGAGING IN THE ABOVE IDENTIFIED ILLEGAL ACTIVITIES HAVE 30DAYS
TO CEASE AND DESIST SUCH ACTIVITY. IF YOU HAVE ANY QUESTION PER THE
CONTENT OFOF THIS MESSAGE, CONTACT ALFRED S. MORAWSKI, CHIEF, BROKER
MANAGEMENT BRANCH AT(202) 344-2580.