[Federal Register Volume 69, Number 167 (Monday, August 30, 2004)]
[Rules and Regulations]
[Pages 52813-52814]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-19664]


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DEPARTMENT OF HOMELAND SECURITY

Bureau of Customs and Border Protection

19 CFR Part 111

[C.B.P. Dec. No. 04-30]
RIN 1651-AA46


Customs Broker License Examination Dates

AGENCY: Customs and Border Protection, Department of Homeland Security.

ACTION: Final rule.

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SUMMARY: This document adopts as a final rule the interim rule amending 
the Customs and Border Protection (CBP) regulations to allow CBP to 
publish a notice changing the date on which a semi-annual written 
examination for an individual broker's license will be held when the 
normal date conflicts with a holiday, religious observance, or other 
scheduled event.

EFFECTIVE DATE: August 30, 2004

FOR FURTHER INFORMATION CONTACT: Alice Buchanan, Office of Field 
Operations (202-344-2673).

SUPPLEMENTARY INFORMATION:

Background

    Section 641 of the Tariff Act of 1930, as amended (19 U.S.C. 1641), 
provides that a person (an individual, corporation, association, or 
partnership) must hold a valid customs broker's license and permit in 
order to transact customs business on behalf of others, sets forth 
standards for the issuance of broker's licenses and permits, and 
provides for the taking of disciplinary action against brokers that 
have engaged in specified types of infractions. In the case of an 
applicant for an individual broker's license, section 641 provides that 
the Secretary of the Treasury may conduct an examination to determine 
the applicant's qualifications for a license. Section 641 also 
authorizes the Secretary of the Treasury to prescribe rules and 
regulations relating to the customs business of brokers as may be 
necessary to protect importers and the revenue of the United States and 
to carry out the provisions of section 641.
    Pursuant to the Homeland Security Act of 2002 (Pub. L. 107-296) and 
Treasury Order No. 100-16, the Secretary of the Department of Homeland 
Security now has the authority to prescribe the rules and regulations 
relating to Customs brokers.
    The regulations issued under the authority of section 641 are set 
forth in part 111 of the Customs and Border

[[Page 52814]]

Protection (CBP) Regulations (19 CFR part 111). Part 111 includes 
detailed rules regarding the licensing of, and granting of permits to, 
persons desiring to transact customs business as customs brokers, 
including the qualifications required of applicants and the procedures 
for applying for licenses and permits. Section 111.11 sets forth the 
basic requirements for a broker's license and, in paragraph (a)(4), 
provides that an applicant for an individual broker's license must 
attain a passing grade on a written examination taken within the 3-year 
period before submission of the license application prescribed under 
Sec.  111.12.
    Section 111.13 sets forth the requirements and procedures for the 
written examination for an individual broker's license. Paragraph (b) 
of Sec.  111.13 concerns the date and place of the examination and, in 
the first sentence, provides that ``[w]ritten examinations will be 
given on the first Monday in April and October.''
    On May 29, 2003, CBP published in the Federal Register (68 FR 
31976) as T.D. 03-23 , an interim rule adding a provision that would 
allow CBP to publish a notice changing the date on which a semi-annual 
written examination for an individual broker's license will be held 
when the normal date conflicts with a holiday, religious observance, or 
other scheduled event. In the interim rule, CBP noted that the first 
Monday in October 2003, that is, October 6th, coincided with the 
observance of Yom Kippur, and CBP noted that the regulatory text quoted 
above did not provide for the adoption of alternative examination 
dates. In order to avoid conflicts with national holidays, religious 
observances, and other foreseeable events that could limit an 
individual's opportunity to take the broker's examination, T.D. 03-23 
amended Sec.  111.13(b) to provide CBP with some flexibility in those 
circumstances as regards the determination of the specific date on 
which an examination will be given. The interim rule requested 
comments, and those that were received are discussed below.

Discussion of Comments

    Two commenters responded to the solicitation of public comment, and 
both requested that the regulation include a statement as to when the 
rescheduled examination will occur. Specifically, one commenter 
requested that the rescheduled examination date be no more than five 
business days (or one calendar week) later than the first Monday in 
April or the first Monday in October. The other commenter requested 
that we standardize the manner in which the rescheduled date will be 
determined, but did not request any specific time frame for the 
rescheduled date.
    CBP believes that it is not necessary to include in the regulation 
a statement as to exactly when the rescheduled examination would occur. 
While CBP does not intend to schedule an examination later than one 
week after the first Monday in April or October, CBP believes that it 
would not be wise to standardize the rescheduled date(s) because CBP 
contracts the administration of the examinations to the Office of 
Personnel Management (OPM). Standardization as to when an examination 
would be rescheduled could unduly constrain CBP and OPM to what may 
become ill-timed or unavailable dates.

Conclusion

    After analysis of the comments and further review of the matter, 
CBP has determined to adopt as a final rule, with no changes, the 
interim rule published in the Federal Register (68 FR 31976) on May 29, 
2003, as T.D. 03-23.

Signing Authority

    This final rule is being issued in accordance with 19 CFR 0.1(b)(1) 
of the CBP Regulations.

Inapplicability of Notice and Delayed Effective Date Requirements and 
the Regulatory Flexibility Act

    Because this regulation finalizes an interim rule already in effect 
that provides a benefit to prospective applicants for individual 
customs broker licenses and imposes no new regulatory burden or 
obligation on any member of the general public, CBP finds that, 
pursuant to the provisions of 5 U.S.C. 553(d)(1) and (3), there is good 
cause for dispensing with a delayed effective date. Because no notice 
of proposed rulemaking is required for interim regulations, the 
provisions of the Regulatory Flexibility Act (5 U.S.C. 601, et seq.) do 
not impose restrictions on the publication of this regulation.

Executive Order 12866

    This document does not meet the criteria for a ``significant 
regulatory action'' as specified in E.O. 12866.

Drafting Information

    The principal author of this document was Dwayne S. Rawlings, 
Office of Regulations and Rulings, Bureau of Customs and Border 
Protection.

List of Subjects in 19 CFR Part 111

    Administrative practice and procedure, Brokers, Customs duties and 
inspection, Imports, Licensing, Reporting and recordkeeping 
requirements.

Amendment to the Regulations

0
For the reasons set forth above, the interim rule amending Sec.  111.13 
of Title 19 of the Code of Federal Regulations (19 CFR part 111.13), 
which was published in the Federal Register (68 FR 31976) on May 29, 
2003, as T.D. 03-23, is adopted as a final rule without change.

    Dated: August 24, 2004.
Robert C. Bonner,
Commissioner, Customs and Border Protection.
[FR Doc. 04-19664 Filed 8-27-04; 8:45 am]
BILLING CODE 4820-02-P