[Federal Register Volume 73, Number 102 (Tuesday, May 27, 2008)]
[Proposed Rules]
[Pages 30328-30330]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-11732]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF HOMELAND SECURITY

Bureau of Customs and Border Protection

19 CFR Part 111

[Docket No. USCBP-2008-0059]
RIN 1651-AA74


Customs Broker License Examination Individual Eligibility 
Requirements

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

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: This document proposes to amend the requirements that an 
individual must satisfy in order to take the written examination for an 
individual broker's license, as administered by Customs and Border 
Protection (``CBP''). This proposed rule would require that to take the 
written examination, an individual would be required to be a U.S. 
citizen on the date of examination who has attained the age of 21 prior 
to the date of examination and is not an officer or employee of the 
United States Government. The proposed amendments would more closely 
align the requirements for taking the written examination with the 
requirements an individual must satisfy in order to obtain a customs 
broker's license. As a result, this proposed rule would facilitate the 
overall customs broker licensing process by helping to ensure that 
those taking the examination are not automatically precluded from 
obtaining a license by reason of age, citizenship status, or 
employment.

DATES: Comments must be received on or before July 28, 2008.

ADDRESSES: You may submit comments, identified by docket number, by one 
of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments via docket number 
USCBP-2008-0059.
     Mail: Trade and Commercial Regulations Branch, Regulations 
and Rulings, U.S. Customs and Border Protection, 1300 Pennsylvania 
Avenue, NW., (Mint Annex), Washington, DC 20229.
    Instructions: All submissions received must include the agency name 
and docket number for this rulemaking. All comments received will be 
posted without change to http://www.regulations.gov, including any 
personal information provided. For detailed instructions on submitting 
comments and additional information on the rulemaking process, see the 
``Public Participation'' heading of the SUPPLEMENTARY INFORMATION 
section of this document.
    Docket: For access to the docket to read background documents or 
comments received, go to http://www.regulations.gov. Submitted comments 
may also be inspected during regular business days between the hours of 
9 a.m. and 4:30 p.m. at the Trade and Commercial Regulations Branch, 
Regulations and Rulings, U.S. Customs and Border Protection, 799 9th 
Street, NW., (5th Floor), Washington, DC. Arrangements to inspect 
submitted comments should be made in advance by calling Joseph Clark at 
(202) 572-8768.

FOR FURTHER INFORMATION CONTACT: Alfred S. Morawski, Chief, Broker 
Compliance Branch, Office of International Trade, (202) 863-6505.

SUPPLEMENTARY INFORMATION:

Public Participation

    Interested persons are invited to participate in this rulemaking by 
submitting written data, views, or arguments on all aspects of the 
proposed rule. CBP also invites comments that relate to the economic, 
environmental, or federalism effects that might result from this 
proposed rule. Comments that will provide the most assistance to CBP 
will reference a specific portion of the proposed rule, explain the 
reason for any recommended change, and include data, information, or 
authority that support such recommended change. See ADDRESSES above for 
information on how to submit comments.

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. Section 641 
also 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, Sec.  641 
states that the Secretary of the Treasury may conduct an examination to 
determine such 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 necessary to 
protect importers and the revenue of the

[[Page 30329]]

United States and to carry out the provisions of Sec.  641.
    On November 25, 2002, the President signed the Homeland Security 
Act of 2002, (6 U.S.C. 101 et seq., Public Law 107-296) (the ``HSA''), 
establishing the Department of Homeland Security. Pursuant to Sec.  
403(1) of the HSA, the United States Customs Service was transferred 
from the Department of the Treasury to the Department of Homeland 
Security effective March 1, 2003. In addition, pursuant to Sec.  1502 
of the HSA, the ``Customs Service'' was renamed as the ``Bureau of 
Customs and Border Protection.'' Subsequently, on April 23, 2007, a 
Notice was published in the Federal Register (72 FR 20131) to inform 
the public that the name of the Bureau of Customs and Border Protection 
had been changed by the Department of Homeland Security to ``U.S. 
Customs and Border Protection (CBP),'' effective March 31, 2007.
    Treasury Order No. 100-16 (see Appendix to 19 CFR part 0) delegated 
to the Department of Homeland Security the authority to prescribe the 
rules and regulations relating to customs brokers.
    The regulations issued under the authority of Sec.  641 are set 
forth in part 111 of title 19 of the Code of Federal 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. These rules include the qualifications 
required of applicants and the procedures for applying for licenses and 
permits. Section 111.11 (19 CFR 111.11) sets forth the basic 
requirements for obtaining a broker's license. Paragraphs (a)(1) 
through (a)(4) of Sec.  111.11 provide that, in order to obtain a 
customs broker's license, an individual must be: A citizen of the 
United States upon applying for the license and not an officer or 
employee of the United States; attain the age of 21 prior to the date 
of application for such license; be of good moral character; and, 
obtain a passing grade on the written examination within a 3-year 
period before submission of the application.
    The regulations relating to the written examination for an 
individual customs broker's license are set forth in Sec.  111.13 (19 
CFR 111.13). Paragraph (b) of Sec.  111.13, pertaining to the date and 
place of the examination, provides that an individual intending to take 
the examination must advise the appropriate port director in writing at 
least 30 calendar days prior to the scheduled examination date and 
remit the $200 examination fee prescribed in paragraph (a) of Sec.  
111.96. There are no additional requirements in Sec.  111.13 that must 
be fulfilled in order for an individual to sit for the customs broker's 
license examination.

Explanation of Amendments

    This document proposes to amend Sec.  111.13 in order to more 
closely align the basic requirements an individual must satisfy in 
order to take the written examination for a broker's license with the 
basic requirements an individual must satisfy in order to actually 
obtain an individual broker's license. In order to be eligible to take 
the written examination under the proposed amendments, an individual 
would be required to be a citizen of the United States on the date of 
examination and not an officer or employee of the United States 
Government, and to attain the age of 21 prior to the date of 
examination. By more closely aligning the requirements for taking the 
examination with the requirements for obtaining a license, the proposed 
amendments would facilitate the overall licensing process by helping to 
ensure that those sitting for the examination are not automatically 
precluded from obtaining a license by reason of age, citizenship 
status, or employment. For example, under the current regulations, an 
individual could take and pass the examination but not be eligible to 
obtain a license because he or she has not attained the age of 21, is 
not a U.S. citizen, or is employed by the U.S. Government. The proposed 
amendments would prevent this from occurring and, as a result, such an 
individual would be spared the time and expense of preparing for and 
taking the examination. CBP would also benefit as the proposed rule 
would prevent unnecessary expenditures of resources in administering 
the examination with respect to individuals who are ineligible to 
obtain a license.
    In addition, it is noted that limiting the examination to U.S. 
citizens is a reasonable security measure that conforms to the existing 
citizenship requirement for obtaining a license. Moreover, by barring 
U.S. Government employees from taking the examination, the proposed 
amendments would help to eliminate the appearance of any conflict of 
interest or unfair advantage that might be associated with their 
employment in connection with taking the examination.
    This document also proposes non-substantive amendments to Sec.  
111.13(a), (c), and (e) to reflect the nomenclature changes effected by 
the transfer of CBP to the Department of Homeland Security.

Inapplicability of Regulatory Flexibility Act and Executive Order 12866

    Pursuant to the provisions of the Regulatory Flexibility Act (5 
U.S.C. 601 et seq.), it is certified that, if adopted, the proposed 
amendments will not have a significant economic impact on a substantial 
number of small entities because the proposed rule would merely result 
in more closely aligning the requirements for taking the written 
examination for an individual customs broker's license with the 
requirements for actually obtaining a customs broker's license. 
Accordingly, the proposed amendments are not subject to the regulatory 
analysis or other requirements of 5 U.S.C. 603 and 604. In addition, 
this document does not meet the criteria for a ``significant regulatory 
action'' as specified in E.O. 12866.

Signing Authority

    This document is being issued by CBP in accordance with Sec.  
0.1(b)(1) of the CBP regulations (19 CFR 0.1(b)(1)).

List of Subjects

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

Proposed Amendments to the CBP Regulations

    It is proposed to amend part 111 of title 19 of the Code of Federal 
Regulations (19 CFR part 111) as set forth below.

PART 111--CUSTOMS BROKERS

    1. The general authority citation for part 111 continues to read as 
follows:

    Authority: 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized 
Tariff Schedule of the United States), 1624, 1641.

    2. In Sec.  111.13:
    a. Paragraph (a) is amended by removing the words ``Customs 
Headquarters'' and adding, in their place, the words ``Customs and 
Border Protection Headquarters'';
    b. Paragraph (b) is amended by revising the heading and adding a 
new first sentence;
    c. Paragraph (c) is amended by removing the word ``Customs'' each 
place it appears and adding, in its place, the term ``CBP''; and
    d. Paragraph (e) is amended by removing the word ``Customs'' in the 
first sentence and adding, in its place, the term ``CBP''.
    The revision reads as follows:

[[Page 30330]]

Sec.  111.13  Written examination for individual license.

* * * * *
    (b) Basic requirements, date, and place of examination. In order to 
be eligible to take the written examination, an individual must be a 
citizen of the United States on the date of examination and not an 
officer or employee of the United States Government, and attain the age 
of 21 prior to the date of examination. * * *
* * * * *

    Dated: May 21, 2008.
Jayson P. Ahern,
Acting Commissioner, U.S. Customs and Border Protection.
 [FR Doc. E8-11732 Filed 5-23-08; 8:45 am]
BILLING CODE 9111-14-P