19 CFR 111.42 – Relations with person who is notoriously disreputable or whose license is under suspension, canceled “with prejudice,” or revoked
(a) General. Except as otherwise provided in paragraph (b) of this section, a broker must not knowingly and directly or indirectly:
Terms Used In 19 CFR 111.42
- Broker: means a customs broker. See 19 CFR 111.1
- CBP: means U. See 19 CFR 101.1
- Customs business: means those activities involving transactions with CBP concerning the entry and admissibility of merchandise, its classification and valuation, the payment of duties, taxes, or other charges assessed or collected by CBP on merchandise by reason of its importation, and the refund, rebate, or drawback of those duties, taxes, or other charges. See 19 CFR 111.1
- Employee: means a person who meets the common law definition of employee and is in the service of a customs broker. See 19 CFR 111.1
- Executive Assistant Commissioner: means the Executive Assistant Commissioner of the Office of Trade at the Headquarters of U. See 19 CFR 111.1
- Importer: means the person primarily liable for the payment of any duties on the merchandise, or an authorized agent acting on his behalf. See 19 CFR 101.1
- Officer: when used in the context of an association or corporation, means a person who has been elected, appointed, or designated as an officer of an association or corporation in accordance with statute and the articles of incorporation, articles of agreement, charter, or bylaws of the association or corporation. See 19 CFR 111.1
- Permit: means a permit issued to a broker under § 111. See 19 CFR 111.1
- Person: includes individuals, partnerships, associations, and corporations. See 19 CFR 111.1
(1) Accept employment to effect a customs transaction as associate, correspondent, officer, employee, agent, or subagent from any person who is notoriously disreputable or whose broker license was revoked for any cause or is under suspension or was cancelled “with prejudice;”
(2) Assist in the furtherance of any customs business or transactions of any person described in paragraph (a)(1) of this section;
(3) Employ, or accept assistance in the furtherance of any customs business or transactions from, any person described in paragraph (a)(1) of this section, without the approval of the Executive Assistant Commissioner, or his or her designee, (see § 111.79);
(4) Share fees with any person described in paragraph (a)(1) of this section; or
(5) Permit any person described in paragraph (a)(1) of this section to participate, directly or indirectly and whether through ownership or otherwise, in the promotion, control, or direction of the business of the broker.
(b) Client exception. Nothing in this section will prohibit a broker from transacting customs business on behalf of a bona fide importer or exporter who may be notoriously disreputable or whose broker license is under suspension or was cancelled “with prejudice” or revoked.