Supporting Law and Reg

Bureau of Customs and Border Protection, DHS, Treasury
application was filed. The notice of denial will state the reasons why the license was not issued.
(b) Grounds for denial. The grounds
sufficient to justify denial of an application for a license include, but need
not be limited to:
(1) Any cause which would justify
suspension or revocation of the license
of a broker under the provisions of
§ 111.53;
(2) The failure to meet any requirement set forth in § 111.11;
(3) A failure to establish the business
integrity and good character of the applicant;
(4) Any willful misstatement of pertinent facts in the application for the license;
(5) Any conduct which would be
deemed unfair in commercial transactions by accepted standards; or
(6) A reputation imputing to the applicant criminal, dishonest, or unethical conduct, or a record of that conduct.
§ 111.17 Review of the denial of a license.
(a) By the Assistant Commissioner.
Upon the denial of an application for a
license, 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.
(b) By the Secretary. Upon the decision of the Assistant Commissioner affirming the denial of an application for
a license, the applicant may file with
the Secretary of the Treasury, in writing, a request for any additional review
that the Secretary deems appropriate.
This request must be received by the
Secretary within 60 calendar days of
the Assistant Commissioner’s affirmation of the denial of the application for
a license.
(c) By the Court of International Trade.
Upon a decision of the Secretary of the
Treasury affirming the denial of an application for a license, the applicant
may appeal the decision to the Court of
International Trade, provided that the

§ 111.19

appeal action is commenced within 60
calendar days after the date of entry of
the Secretary’s decision.
§ 111.18

Reapplication for license.

An applicant who has been denied a
license may reapply at any time by
complying with the provisions of
§ 111.12.
§ 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

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§ 111.19

19 CFR Ch. I (4–1–04 Edition)

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 $125 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 $125 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 $125 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 Customs 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, Customs 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 Field Operations,
Customs Headquarters, for review and
decision. A written decision on the
waiver request will be issued by the Office of Field Operations 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 Field Operations,
Customs 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 Field Operations, U.S. Customs Service, 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;

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Bureau of Customs and Border Protection, DHS, Treasury
(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]

Subpart C—Duties and Responsibilities of Customs Brokers
§ 111.21 Record of transactions.
(a) Each broker must keep current in
a correct, orderly, and itemized manner records of account reflecting all his
financial transactions as a broker. He
must keep and maintain on file copies
of all his correspondence and other
records relating to his customs business.
(b) Each broker must comply with
the provisions of this part and part 163
of this chapter when maintaining
records that reflect on his transactions
as a broker.
(c) Each broker must designate a
knowledgeable company employee to

§ 111.23

be the contact for Customs for brokerwide customs business and financial
recordkeeping requirements.
§ 111.22

[Reserved]

§ 111.23

Retention of records.

(a) Place and period of retention—(1)
Place. Records must be retained by a
broker in accordance with the provisions of this part and part 163 of this
chapter within the broker district that
covers the Customs port to which they
relate unless the broker chooses to
consolidate records at one or more
other locations, and provides advance
notice of that consolidation to Customs, in accordance with paragraph (b)
of this section.
(2) Period. The records described in
paragraph (a)(1) of this section, other
than powers of attorney, must be retained for at least 5 years after the
date of entry. Powers of attorney must
be retained until revoked, and revoked
powers of attorney and letters of revocation must be retained for 5 years
after the date of revocation or for 5
years after the date the client ceases to
be an ‘‘active client’’ as defined in
§ 111.29(b)(2)(ii), whichever period is
later. When merchandise is withdrawn
from a bonded warehouse, records relating to the withdrawal must be retained for 5 years from the date of
withdrawal of the last merchandise
withdrawn under the entry.
(b)
Notification
of
consolidated
records—(1) Applicability. Subject to the
requirements of paragraph (b)(2) of this
section and except when a restriction
applies under § 163.5(b) of this chapter,
the option of maintaining records on a
consolidated system basis is available
to brokers who have been granted permits to do business in more than one
district.
(2) Form and content of notice. If consolidated storage is desired by the
broker, he must submit a written notice addressed to the Director, Regulatory Audit Division, U.S. Customs
Service, 909 S.E. First Avenue, Miami,
Florida 33131. The written notice must
include:
(i) Each address at which the broker
intends to maintain the consolidated
records. Each such location must be

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