Title 19: Customs Duties
CHAPTER I: U.S. CUSTOMS AND BORDER PROTECTION, DEPARTMENT OF HOMELAND SECURITY; DEPARTMENT OF THE TREASURY
PART 111: CUSTOMS BROKERS
Subpart B: Procedure To Obtain License or Permit
111.19 - Permits.
(a) General. Each person granted a broker's license under this part will be concurrently issued a permit for the district in which the port through which the license was delivered to the licensee (see ? 111.15) is located and without the payment of the $100 fee required by ? 111.96(b), if it is shown to the satisfaction of the port director that the person intends to transact customs business within that district and the person otherwise complies with the requirements of this part.
(b) Submission of application for initial or additional district permit. A broker who intends to conduct customs business at a port within another district for which he does not have a permit, or a broker who was not concurrently granted a permit with the broker's license under paragraph (a) of this section, and except as otherwise provided in paragraph (f) of this section, must submit an application for a permit in a letter to the director of the port at which he intends to conduct customs business. Each application for a permit must set forth or attach the following:
(1) The applicant's broker license number and date of issuance;
(2) The address where the applicant's office will be located within the district and the telephone number of that office;
(3) A copy of a document which reserves the applicant's business name with the state or local government;
(4) The name of the individual broker who will exercise responsible supervision and control over the customs business transacted in the district;
(5) A list of all other districts for which the applicant has a permit to transact customs business;
(6) The place where the applicant's brokerage records will be retained and the name of the applicant's designated recordkeeping contact (see ?? 111.21 and 111.23); and
(7) A list of all persons who the applicant knows will be employed in the district, together with the specific employee information prescribed in ? 111.28(b)(1)(i) for each of those prospective employees.
(c) Fees. Each application for a district permit under paragraph (b) of this section must be accompanied by the $100 and $138 fees specified in ?? 111.96(b) and (c). In the case of an application for a national permit under paragraph (f) of this section, the $100 fee specified in ? 111.96(b) and the $138 fee specified in ? 111.96(c) must be paid at the port through which the applicant's license was delivered (see ? 111.15) prior to submission of the application. The $138 fee specified in ? 111.96(c) also must be paid in connection with the issuance of an initial district permit concurrently with the issuance of a license under paragraph (a) of this section.
(d) Responsible supervision and control?(1) General. The applicant for a district permit must have a place of business at the port where the application is filed, or must have made firm arrangements satisfactory to the port director to establish a place of business, and must exercise responsible supervision and control over that place of business once the permit is granted. Except as otherwise provided in paragraph (d)(2) of this section, the applicant must employ in each district for which a permit is granted at least one individual broker to exercise responsible supervision and control over the customs business conducted in the district.
(2) Exception to district rule. If the applicant can demonstrate to the satisfaction of CBP that he regularly employs at least one individual broker in a larger geographical area in which the district is located and that adequate procedures exist for that individual broker to exercise responsible supervision and control over the customs business conducted in the district, CBP may waive the requirement for an individual broker in that district. A request for a waiver under this paragraph, supported by information on the volume and type of customs business conducted, or planned to be conducted, and supported by evidence demonstrating that the applicant is able to exercise responsible supervision and control through the individual broker employed in the larger geographical area, must be sent to the port director in the district in which the waiver is sought. The port director will review the request for a waiver and make recommendations which will be sent to the Office of International Trade, CBP Headquarters, for review and decision. A written decision on the waiver request will be issued by the Office of International Trade and, if the waiver is granted, the decision letter will specify the region covered by the waiver.
(e) Action on application; list of permitted brokers. The port director who receives the application will issue a written decision on the district permit application and will issue the district permit if the applicant meets the requirements of paragraphs (b), (c), and (d) of this section. If the port director is of the opinion that the district permit should not be issued, he will submit his written reasons for that opinion to the Office of International Trade, CBP Headquarters, for appropriate instructions on whether to grant or deny the district permit. Each port director will maintain and make available to the public an alphabetical list of brokers permitted through his port.
(f) National permit. A broker who has a district permit issued under paragraph (a) or paragraph (e) of this section may apply for a national permit for the purpose of transacting customs business in any circumstance described in ? 111.2(b)(2)(i). An application for a national permit under this paragraph must be in the form of a letter addressed to the Office of International Trade, U.S. Customs and Border Protection, Washington, DC 20229, and must:
(1) Identify the applicant's broker license number and date of issuance;
(2) Set forth the address and telephone number of the office designated by the applicant as the office of record for purposes of administration of the provisions of this part regarding all activities of the applicant conducted under the national permit. That office will be noted in the national permit when issued;
(3) Set forth the name, broker license number, office address, and telephone number of the individual broker who will exercise responsible supervision and control over the activities of the applicant conducted under the national permit; and
(4) Attach a receipt or other evidence showing that the fees specified in ? 111.96(b) and (c) have been paid in accordance with paragraph (c) of this section.
(g) Review of the denial of a permit?(1) By the Assistant Commissioner. Upon the denial of an application for a permit under this section, the applicant may file with the Assistant Commissioner, in writing, a request that further opportunity be given for the presentation of information or arguments in support of the application by personal appearance, or in writing, or both. This request must be received by the Assistant Commissioner within 60 calendar days of the denial.
(2) By the Court of International Trade. Upon a decision of the Assistant Commissioner affirming the denial of an application for a permit under this section, the applicant may appeal the decision to the Court of International Trade, provided that the appeal action is commenced within 60 calendar days after the date of entry of the Assistant Commissioner's decision.
[T.D. 00-17, 65 FR 13891, Mar. 15, 2000, as amended by T.D. 01-14, 66 FR 8767, Feb. 2, 2001; CBP Dec. 03-13, 68 FR 43630, July 24, 2003; 72 FR 3734, Jan. 26, 2007]