Customs Broker Frequently Asked Questions (2024)

The national permit (NP) will operate as permits did before the transition; broker applies, CBP grants it; there is an annual user fee; the NP remains active as long as CBP receives an annual user fee unless the broker cancels it or it is revoked by operation of law or for cause.

CBP currently accepts electronic submission of broker exam and triennial status report fees through the eCBP portal (a CBP electronic data interchange (EDI) system). CBP plans to expand the eCBP portal to collect additional broker fees in the future. Currently, license and permit application fees, and permit user fees are submitted to the processing Center (port location) through which the application is to be submitted or license was delivered.

A broker designated knowledgeable point of contact (POC) must be available to CBP during and outside of normal operating hours to respond to customs business issues within 24 hours of inquiry. Brokers must maintain accurate and current POC information with CBP through the ACE portal account, or by writing to the processing Center if the broker does not have a portal account.

The knowledgeable point of contact must be an employee of the brokerage and should have sufficient knowledge of operations to respond to a CBP inquiry or direct CBP to an appropriate source for a response.

CBP requires the broker to provide a point of contact (POC) with sufficient knowledge of broker operations. The point of contact may refer CBP to other individuals to respond to questions. The POC may provide an email address/mailbox accessible by others as long as the email address/mailbox is monitored by individual(s) with sufficient knowledge of broker operations, and a response is provided to CBP within 24 hours of inquiry.

The recordkeeping point of contact (POC) must be knowledgeable about the financial records and customs business records and will be contacted when CBP is interested in accessing or reviewing the records. For example, CBP might request to see the broker's financial records for an audit or customs records for a broker visit or broker action. A broker must provide and keep current a recordkeeping contact. The contact should be reported on the ACE national permit ‘contacts’ tab. If a broker does not have an ACE portal account, the contact must be provided to the processing Center in writing

Upon the Final Rule effective date, a broker must execute a power of attorney (POA) directly with the importer of record (IOR) or drawback claimant, and not through a freight forwarder or other (unlicensed) third party, in order to transact customs business for that importer of record or drawback claimant. The term “directly” means the IOR or claimant must execute and sign the POA by directly communicating with the broker , and cannot have an agent or third party sign or negotiate the POA in their stead. However, the IOR or claimant may have an agent or third party assist in executing the POA, for example, by: providing translation services; providing counsel in reviewing the terms of a POA; or, providing courier services to relay a written POA.

The requirement for brokers to execute a power of attorney (POA) directly with a client does not prohibit a Broker A-Broker B relationship. A client may authorize its broker (Broker A) to allow other brokers (Broker B) to transact any portion of the customs business conducted on behalf of the client. The grant of authority to Broker B is accomplished by including special appointment language in the POA executed between the client and Broker A.

A freight forwarder may not assign a power of attorney to conduct customs business to a customs broker on behalf of a client.

In order to directly execute a POA with an IOR, a broker must directly communicate with the IOR, not via a third party or intermediary,such as a FF. A FF or other third party may act as a courier or delivery service to pass a written POA and related communications back and forth between a broker and IOR, or facilitate an electronic introduction between a broker and IOR, but cannot communicate with the broker instead of or in place of the IOR.

Yes, anyone seeking to have a broker conduct customs business on their behalf, including a nominal consignee, must execute a POA directly with a customs broker.

A broker must execute a power of attorney (POA) directly with an importer of record (IOR) or drawback claimant (client) and not through a freight forwarder or other third party in order to transact customs business on behalf of the client. The term “directly” means the IOR or claimant must execute and sign the POA by directly communicating with the broker, and cannot have an agent or third party sign or negotiate the POA in their stead​. An agent or other 3rd party cannot serve as a barrier to communications between the broker and the client, however, the IOR or claimant may have an agent or third party assist in executing the POA, for example by: providing translation services; providing counsel in reviewing the terms of a POA; or, providing courier services to relay a written POA, but cannot communicate with the broker instead of or in place of the IOR​.

CBP has not made any change to the standard POA language provided in 19 CFR 141.32.

A broker must provide a supervision plan for exercising responsible supervision and control over its customs business at the time of permit application. Supervision plans are unique to each broker and depend, among other things, on the size of a brokerage, the complexity of the customs business, and the types of transactions handled. CBP believes it would be prudent to have more supervision in place if the broker entity is large and deals with complex business transactions. A link to a sample permit application and supervision plan guidelines can be found onCustoms Broker Modernization webpage.

Brokers with an active national permit in place prior to the effective date of the Final Rule are not required to provide a supervision plan to CBP. However, development of a supervision plan is recommended as a best practice to ensure proper maintenance of responsible supervision and control. If a broker, who is exempt from the supervision plan requirement cancels his/her permit or the permit is revoked by operation of law, and afterwards the broker applies for a new permit, he/she must provide a supervision plan along with all other information required to be submitted with a national permit application.

A sole proprietorship, partnership, association, or corporation should employ a sufficient number of brokers to ensure it maintains responsible supervision and control over its customs business. What constitutes a sufficient number of brokers will depend on multiple factors, such as the size of the broker entity, the skills and abilities of the employees and supervising employees, and the complexity and similarity of tasks. Additional guidance may be found onCustoms Broker Modernization webpage.

A broker must provide notification to CBP within 72 hours of discovering a breach of electronic or physical records relating to the broker’s customs business. The notification must include any known compromised importer’s Employer Identification Numbers (EIN). Within 10 business days of the notification, the broker must electronically provide an updated list of any additional known compromised EINs. After that, the broker must electronically provide any additional information discovered within 72 hours of discovery.

Brokers must maintain original records, including electronic records, within the customs territory of the United States and in accordance with the provisions of Part 111 and Part 163 of 19 CFR.

Brokers can share client information with third parties when authorized in writing by the client.

Third-party servers hosting electronic broker records must be based in the U.S.

A broker must not file or procure or assist in the filing of any claim, or of any document, affidavit, or other papers, known by such broker to be false. A broker must not give, or solicit or procure the giving of, any information or testimony that the broker knew or should have known was false or misleading, in any matter pending before DHS or to any representative of DHS.

Upon the Final Rule effective date, brokers must document and report to CBP when brokers separate from or cancel representation with a client upon determining that the client is intentionally attempting to use brokers to defraud the U.S. Government or commit a criminal act against the U.S. Government. The report to CBP must include the client name, date of separation or cancellation, and reason for the separation or cancellation. Such information should be reported by phone, email, or mail to a supervisory point of contact at the importer’s assigned Center of Excellence and Expertise. Reporting may also be made through CBP’s e-Allegations program as long as all required information is submitted. Additional guidance can be found in the Customs Broker Guidance for the Trade Community.

The broker should provide the name and address of the client, when the separation or cancellation occurred, the reason(s) for the separation or cancellation, and any documentation of the violation or attempted violation so CBP can exercise its due diligence and perform an investigation of the importer’s dealings.

CBP will notify brokers in writing of an impending revocation by operation of law, 30 calendar days before the revocation is due to occur, but only if the broker has provided advance notice to CBP of the underlying events that could cause a revocation by operation of law. Once a permit and/or a license is revoked by operation of law, CBP will also provide notice of the effective revocation.

CBP will endeavor to publish permit and license revocations by operation of law in the Federal Register within 1 year after revocation.

The definition of “customs business” has not changed and can be found in 19 U.S.C. 1641(a)(2) and 19 CFR 111.1, with additional requirements specified in 19 CFR 111.3. Based on the requirements appearing in § 111.3(a), the proposal in the example would not be allowed because customs business must be conducted within the customs territory of the United States. Brokers may request a ruling for a clear determination as to the permissibility of a fact-specific activity/scenario pursuant to 19 CFR 177.1.

The Final Rule expands the scope of the national permit authority to allow national permit holders to conduct any type of customs business throughout the customs territory of the United States, effectively making every entry filed a remote location filed entry. Upon the effective date of the Final Rule, a broker will file all entries through a national permit and submit the current RLF required information in the ‘B’ record of the ABI Batch and Block Control for each filing.

No, the regulatory changes do not affect self-filing importers who are not utilizing the services of a broker.

If a broker intends to maintain original records using an alternative storage method, he/she must submit an advance written notification to CBP. The notice must be provided at least 30 days prior to implementation of the alternative storage method. See 19 CFR 163.5(b) for details on submitting an alternative storage notification.

There has been no change to 19 CFR 111.36(c)(1) and (2) concerning broker compensation to a FF for referring broker business.

There has been no change as to who must file a triennial status report. All licensed individuals and organizations must file a triennial report.

If an individual is working for a licensed customs broker and transacting customs business on behalf of the licensed customs broker employer, the individual does not need a permit.

The Final Rule and the transition to a national permit structure does not have any effect on the statement generation and payment process.

The only section of 19 CFR 111.36, Relations with unlicensed parties, that has changed in the modernized regulations is 111.36(c)(3), the requirement to execute a direct power of attorney between the client and the broker. CBP has not changed any other requirements in that section.

The permit qualifier does not need to be an officer but must be a licensed employee. The license qualifier DOES need to be an officer of a corporation or association, or member of a partnership.

The letter for changing a national permit qualifier would go to the processing Center BMO located at the port through which the license was issued. National permits are managed through the licensing location. You may also copy the BMB HQ email: brokermanagement@cbp.dhs.gov.

CBP will not require customs brokers to have individually licensed brokers at each location where a broker transacts customs business, however, the broker must determine how many licensed customs brokers are needed and where they should be located to maintain responsible supervision and control over all custom business being conducted by the broker.

If CBP has a responsible supervision and control concern regarding a broker, whether the broker is employing a sufficient number of brokers is one of the factors that CBP may consider in determining whether or not the broker exercises responsible supervision and control over the customs business being conducted. After a broker visit, CBP will issue a written report of the visit documenting all areas of concern which could include identifying a lack of individually licensed brokers.

Brokers must provide written notification to CBP within 10 calendar days of an event resulting in a change of organization, with details explaining the event/change. Such events include a change in national permit qualifier, license qualifier, organization articles, or name.

CBP made training available for all changes in ACE, along with reference guides in the ACE broker portal. Please use the following link:ACE Training and Reference Guides.

Permitted brokers with ACE portal accounts may use the ACE broker portal to transmit information on current, new, and terminated employees; the office of record and recordkeeping address; the recordkeeping point of contact; and the knowledgeable 24/7 point of contact. If a broker does not have an ACE portal account, this information must be submitted in writing to the processing Center.

The ACE trade account owner (TAO) has the capability to add users to the account, assign a user’s access level, and grant no access, read-only access or full access to account information. It is the TAO’s responsibility to determine which users may have access to view and/or update employee information.