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Modernized Customs Broker Regulations and Changes to 19 CFR 111 (CSMS # 53676905)

On October 18th, U.S. Customs and Border Protection (CBP) published two Final Rules that update provisions in 19 CFR 111: Modernization of the Customs Broker Regulations. Final Rule effective date is December 19, 2022.

Key changes in the Final Rules include:

New Term and Definition of “Processing Center:

  • Processing Center means the broker management operations of a Center of Excellence and Expertise (Center) that process applications for a broker's license, applications for a national permit for an individual, partnership, association, or corporation, as well as submissions required in Part 111 for an already-licensed broker

Transitioning to a National Permit Framework

  • CBP eliminated the broker districts and district permits

Broker Fee Changes and Electronic Payment

  • CBP increases the license application fee from $200 per application to $300 for individual license applications and $500 for organization license applications to recover some of the costs associated with the processing of applications and to better align the processing expenses between the application types

Customs Business within the U.S. Customs Territory and Knowledgeable Point of Contact

  • CBP’s practice of requiring customs business to be conducted within the customs territory of the United States is now codified in the regulation

  • Brokers must designate a knowledgeable point of contact to be available to CBP during and outside of normal operating hours to respond to customs business issues (24/7 POC)

Broker/Client Relationship

  • Brokers must execute a customs power of attorney directly with the importer of record or drawback claimant, and not via a freight forwarder or other (unlicensed) third party, to transact customs business for that importer of record or drawback claimant

  • Brokers must advise the client on the proper corrective actions required in case of noncompliance, an error or an omission on the client's part, and retain a record of their communication with the client

Responsible Supervision and Control Requirements

  • CBP has increased Responsible Supervision and Control factors listed in regulation from 10 to 13

  • A sole proprietorship, partnership, association or corporation must employ a sufficient number of licensed brokers, the number of which may 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

  • At the time of permit application, brokers must provide a supervision plan for exercising responsible supervision and control over its customs business, which will be 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

Cyber Security and Records Requirements

  • Brokers must maintain original records, including electronic records, within the U.S. customs territory

  • Brokers must notify CBP when there has been a breach of electronic or physical broker records and provide the compromised importer of record numbers

  • Revisions to records confidentiality allows brokers to share client information with third parties when authorized in writing by the client

Broker Reporting and the Electronic Data Interface (ACE)

  • CBP modernized regulations to allow brokers to transmit the following information via the ACE portal account:

  • Office of record and recordkeeping address information

  • Knowledgeable 24/7 point of contact information

False Information

  • Brokers must not give, solicit or procure the giving of any information or testimony that broker knew or should have known was false or misleading in any matter pending before DHS or to any representative of DHS

  • Brokers must document and report to CBP when brokers cease business with the client as a result of 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.

To read and download the Customs Broker Guidance, please visit CBP’s 19 CFR 111 dedicated webpage at

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