[Federal Register Volume 81, Number 178 (Wednesday, September 14, 2016)]
[Proposed Rules]
[Pages 63149-63153]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-21935]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
 ========================================================================
 

  Federal Register / Vol. 81, No. 178 / Wednesday, September 14, 2016 / 
Proposed Rules  

[[Page 63149]]



DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection

19 CFR Part 111

[Docket No. USCBP-2016-0059]
RIN 1651-AB07


Modernization of the Customs Brokers Examination

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

ACTION: Notice of proposed rulemaking.

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SUMMARY: This document proposes to update the U.S. Customs and Border 
Protection (CBP) regulations concerning the customs broker's 
examination provisions. Specifically, this document proposes to 
transition to a computer automated customs broker examination, increase 
the examination fee to cover the increased cost of delivering the exam, 
and adjust the dates of the examination to account for the fiscal year 
transition period and payment schedule requirements.

DATES: Comments must be received on or before November 14, 2016.

ADDRESSES: You may submit comments, identified by docket number, by one 
of the following methods:
     Federal eRulemaking Portal at http://www.regulations.gov. 
Follow the instructions for submitting comments via Docket No. USCBP-
2016-0059.
     Mail: Trade and Commercial Regulations Branch, Regulations 
and Rulings, Office of Trade, U.S. Customs and Border Protection, 90 K 
Street NE., 10th Floor, Washington, DC 20229-1177.
    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 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, Office of Trade, Customs and Border 
Protection, 90 K Street NE., 10th Floor, Washington, DC 20229-1177. 
Arrangements to inspect submitted comments should be made in advance by 
calling Mr. Joseph Clark at (202) 325-0118.

FOR FURTHER INFORMATION CONTACT: John Lugo, Broker Management Branch, 
Office of Trade, (202) 863-6015, [email protected].

SUPPLEMENTARY INFORMATION:

Public Participation

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

Background

    Section 641 of the Tariff Act of 1930, as amended (19 U.S.C. 1641), 
provides, among other things, 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 disciplinary action against 
brokers that have engaged in specific infractions. This section also 
provides that an examination may be conducted to assess an applicant's 
qualifications for a license.
    The regulations issued under the authority of section 641 are set 
forth in title 19 of the Code of Federal Regulations, part 111 (19 CFR 
part 111). Part 111 sets forth the regulations regarding, among other 
things, the licensing of, and granting of permits to, persons desiring 
to transact customs business as customs brokers. These regulations also 
include the qualifications required of applicants and the procedures 
for applying for licenses and permits, including examination procedures 
and requirements.
    In this rule, CBP proposes to modernize the customs broker 
examination provisions contained in 19 CFR part 111 by allowing for 
automation of the examination, by increasing the fee to cover the 
increased cost of delivering the exam, and by adjusting the dates of 
the examination to account for the fiscal year transition period and 
payment schedule requirements.

Discussion of Proposed Amendments

Subpart B, Procedure To Obtain License or Permit

    Section 111.11 (19 CFR 111.11) provides the basic requirements for 
individuals, partnerships, and associations or corporations to obtain a 
customs broker's license. An applicant for an individual broker's 
license must be a U.S. citizen, at least 21 years old, of good moral 
character, and must attain a passing grade on a written examination. 
(19 CFR 111.11(a).) Paragraph (a)(4) of section 111.11 currently refers 
to a ``written'' examination. To allow for greater flexibility in test 
administration and for the transition from a paper and pencil format to 
computer automated exams, CBP proposes to remove the word ``written'' 
before examination in paragraph (a)(4) (19 CFR 111.11(a)(4)). The 
automated examination will be held at private testing centers and 
administered by professional proctors. These spaces will each be 
equipped with computers programed to accommodate the examination while 
blocking web access. Examinees are only permitted access to those 
resources allowed to be brought into the examination as listed on 
cbp.gov. Examination automation presents many benefits for both the 
applicant as well as CBP. First, automation will provide faster 
notification of test scores to the examinee. In addition, CBP expects 
examination automation to help standardize the testing environment and

[[Page 63150]]

equipment for all examinees across the country. For CBP, automation 
decreases the staff and administrative resources necessary to conduct 
the examination.
    Section 111.12 (19 CFR 111.12) sets forth the license application 
requirements. Paragraph (a) of section 111.12 currently includes two 
references to a ``written'' examination. CBP proposes to remove the 
word ``written'' before examination in both places that it appears in 
paragraph (a) for the reasons set forth above.
    Section 111.13 (19 CFR 111.13) provides details and procedures for 
the customs broker written examination. Reference to a ``written'' 
examination currently appears in the heading and throughout section 
111.13. Again, CBP proposes to remove the word ``written'' in 
references to the examination throughout the section as well as in the 
section heading.
    In addition, paragraph (a) currently states that the examination is 
graded at CBP Headquarters. Currently, the Office of Personnel 
Management (OPM) administers the examination contract with the testing 
facilities. To allow for greater flexibility in grading the 
examination, including grading by OPM or an OPM contractor, CBP 
proposes to remove the language requiring that the examination will be 
graded at CBP Headquarters. Removing this restriction will also reduce 
the time required to grade the examination.
    Paragraph (b) of section 111.13 (19 CFR 111.13(b)) sets forth the 
basic requirements, date, and place of the examination. The regulations 
currently provide that examinations will be given on the first Monday 
in April and October. In the past few years, CBP has started the new 
fiscal year operating under a Continuing Resolution passed by the U.S. 
Congress. This fiscal uncertainty has created a logistical challenge in 
meeting the payment schedule required by the OPM. To allow more time 
between the start of the fiscal year and the October examination, CBP 
proposes to adjust the examination dates to the fourth Monday in April 
and October. In addition, while the current regulations set forth when 
the examination will be offered, CBP proposes to publish additional 
notice of each examination on its Web site to increase transparency and 
the availability of examination information. CBP has instituted an 
electronic registration process for the broker examination and proposes 
to amend the regulations to reflect this change in process.
    The current examination fee is $200. (19 CFR 111.13(b).) As part of 
the review of the customs brokers regulations, CBP conducted a fee 
study and determined that a fee of $390 is necessary to recover the 
costs associated with administering the customs broker license 
examination. A fee study documenting the proposed fee change, entitled 
``Customs Broker License Examination Fee Study,'' has been included in 
the docket of this rulemaking (Docket No. USCBP-2016-0059). The 
examination fee has remained at $200 since 2000 and has not been 
adjusted to account for inflation. In addition, the cost to deliver the 
examination is expected to increase. CBP has relied upon port staff to 
administer the examination using mainly government facilities and a few 
hotel sites. With automated examinations, CBP will need to hire 
proctors and reserve testing centers. As a result, CBP proposes to 
increase the examination fee from $200 to $390.
    Paragraph (c) of section 111.13 (19 CFR 111.13(c)) provides for a 
special examination in the case that a partnership, association, or 
corporation loses the member or officer with the individual broker's 
license that is required by the regulations. Under the current 
regulation, the party seeking a special examination bears the cost of 
CBP's developing and administering the examination. Since the 
examination is offered twice each year, however, firms have a large 
pool of licensed brokers from which to find a replacement. To date, CBP 
has never used the special examination provision. Consequently, CBP has 
determined that the special examination provision is unnecessary and 
proposes to remove current paragraph (c) and redesignate the remaining 
paragraphs (d), (e), and (f) as (c), (d), and (e). A corresponding 
amendment is proposed to remove the sentence addressing failure to 
appear for a special examination in redesignated paragraph (c).
    Current paragraph (d) (19 CFR 111.11(d)) explains the procedure 
when an applicant fails to appear for an examination. As noted above, 
CBP proposes to redesignate paragraph (d) as paragraph (c). In 
addition, CBP proposes to amend the CBP contact who should receive 
notice by removing the reference to the port director and instead 
directing the applicant to the Broker Management Branch within the 
Office of Trade.
    Current paragraph (f) (19 CFR 111.11(f)) describes the procedure 
for appealing a failing grade on the examination. As noted above, CBP 
proposes to redesignate paragraph (f) as paragraph (e). In addition, 
CBP proposes to amend the CBP contact for appeals by removing the 
reference to Trade Policy and Programs and instead directing the 
applicant to the Broker Management Branch within the Office of Trade. 
Lastly, CBP proposes to update the cross reference to current paragraph 
(e) to correspond with the redesignated paragraph (d).

Subpart E, Monetary Penalty and Payment of Fees

    As discussed above, CBP has conducted a fee study to review the 
broker examination fees. The fee study documenting the proposed fee 
changes, entitled ``Customs Broker License Examination Fee Study,'' has 
been included in the docket of this rulemaking (Docket No. USCBP-2016-
0059). The current broker examination fee set forth in paragraph (a) of 
section 111.96 (19 CFR 111.96(a)) is $200. Based on the findings of the 
fee study, CBP proposes to increase the examination fee referred to in 
paragraph (a) from $200 to $390.
    In addition, paragraph (e) (19 CFR 111.96(e)) of section 111.96 
describes the method of payment. CBP proposes a nomenclature update by 
replacing the phrase United States Customs Service with U.S. Customs 
and Border Protection. Lastly, to allow for greater flexibility in 
accepting payments, CBP proposes to add the language ``or other CBP 
approved payment method'' to the end of paragraph (e).

Executive Orders 13563 and 12866

    Executive Orders 13563 and 12866 direct agencies to assess the 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This rule is not a ``significant regulatory action,'' 
under section 3(f) of Executive Order 12866. Accordingly, OMB has not 
reviewed this regulation. CBP has prepared the following analysis to 
help inform stakeholders of potential impacts of this proposed rule.

1. Purpose of the Rule

    Customs brokers are private individuals and/or business entities 
(partnerships, associations or corporations) that are regulated and 
empowered by CBP to assist importers and exporters in meeting federal 
requirements governing imports and exports. Customs brokers have an 
enormous responsibility to their clients

[[Page 63151]]

and to CBP that requires them to properly prepare importation and 
exportation documentation, file these documents timely and accurately, 
classify and value goods properly, pay duties and fees, safeguard their 
clients' information, and protect their license from misuse.
    CBP currently licenses brokers who meet a certain set criteria. One 
criterion is that each prospective broker must first pass a broker 
license examination. CBP's current paper based examination method will 
soon no longer be available and so CBP is shifting to an all-electronic 
examination. The all-electronic examination has some benefits to both 
CBP and the trade, such as a faster processing time, which lets 
examinees know their results more quickly and efficiently, and a 
significant reduction in administrative duties for CBP employees. 
However, administering this new electronic examination is also more 
expensive. Additionally, the current $200 fee does not cover the costs 
of the current paper examination. CBP is therefore proposing to 
increase the examination fee from $200 to $390 in order to fully cover 
all of CBP's costs of administering the broker examination.
    CBP is also proposing to change the date of the semi-annual customs 
broker examination from the first Monday in October and April to the 
fourth Monday in October and April for easier administration.

2. Background

    It is CBP's responsibility to ensure that only qualified 
individuals and business entities can perform customs business on 
another party's behalf. The first step in meeting the eligibility 
requirements for a customs broker license requires an individual to 
pass the customs broker license examination. Currently paper-based, the 
customs broker examination is an open-book examination consisting of 80 
multiple-choice questions.
    An individual must meet the following criteria in order to be 
eligible to take the customs broker examination:
     Be a U.S. citizen at least 18 years of age; \1\
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    \1\ Although U.S. citizens at least 18 years old may take the 
broker license exam, a U.S. citizen must be at least 21 years old to 
apply to become a licensed customs broker. An individual has three 
years, from the time s/he takes the customs broker exam, to apply to 
become a licensed customs broker.
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     Not be an employee of the U.S. federal government; and
     Pay a $200 examination fee.
    The customs broker examination is offered semi-annually, in April 
and October, and an examinee has four and a half (4.5) hours to 
complete it. Based on prior year exams from 2004 to 2013, CBP estimates 
that there will be approximately 2,600 examinees per year, or 1,300 
examinees per session. Currently the broker examination is given at 50 
testing locations around the country. CBP anticipates that changing the 
examination format from paper-based to electronic would result in no 
change in the number of testing locations in the country; the only 
change would be the type of testing location. According to the Broker 
Management Branch, the examination is currently administered at hotels 
and ports throughout the country. In the future, the examination will 
instead be held at privately operated formal testing locations.
    Beginning in April 2017, the current paper testing option will no 
longer be available and the broker examination will be fully 
electronic. Despite the higher costs of an electronic exam, it has many 
favorable features which would benefit both CBP and the examinees, 
including shorter wait times for examinees to get their test results 
and a reduction in the time CBP staff spends on administrative matters 
related to the exam, such as fielding questions from examinees and 
mailing test result notices.

3. Costs

    As discussed above, CBP currently charges a $200 fee for the 
customs broker license examination. This fee is used to offset the 
costs associated with providing the services necessary to operate the 
customs broker license examination. Based on a recently completed fee 
study entitled, ``Customs Broker License Examination Fee Study,'' CBP 
has determined that these fees are no longer sufficient to cover its 
costs.\2\ Currently, examinees go to either a port or to a rented event 
space in a hotel to take the paper examination with a 35-page test 
booklet and a scantron sheet, which must subsequently be collected and 
graded. The new all-electronic version of the examination will be 
administered entirely on a computer where the examinees answer the 
questions directly on the screen and the examination is graded 
automatically. As the electronic examination uses all private 
facilities with professional proctors, this automated method will be 
more expensive than the paper examination. Furthermore, the current fee 
is not enough to cover even the current costs of administering the 
examination. As stated above, the current $200 fee has not been changed 
since 2000. According to data provided by CBP's Broker Management 
Branch, administrative and testing costs have increased since the fee 
was last changed. This increase in administrative fees coupled with 
switching to an all-electronic exam, makes it necessary to increase the 
customs broker examination fee from $200 to $390 for CBP to recover all 
of its costs to administer the customs broker examination.
---------------------------------------------------------------------------

    \2\ The fee study is included in the docket of this rulemaking 
(Docket No. USCBP-2016-0059).
---------------------------------------------------------------------------

    CBP has determined that the fee of $390 is necessary to recover the 
costs associated with administering the customs broker license 
examination once the examination is made electronic. The customs broker 
examination is an established service provided by CBP that already 
requires a fee payment. Though the change to an electronic examination 
raises the costs of the examination and also has some benefits for the 
examinees, that change is happening independently of this rule. Absent 
this rule, CBP would be operating the examination at a loss and this 
fee is intended to offset that loss. As such, a change in the fee is 
not a net cost to society, but rather a transfer payment from test 
takers to the government. CBP does recognize, however, that the 
proposed fee change may have a distributional impact on prospective 
customs brokers. In order to inform stakeholders of all potential 
effects of the proposed rule, CBP has analyzed the distributional 
effects of the proposed rule in section ``5. Distributional Impacts.''

4. Benefits

    As discussed above, CBP is proposing to increase the customs broker 
license examination fee from $200 to $390. The broker examination fee 
was last changed in 2000 when it was reduced from $300 to the current 
fee of $200. The lower cost paper-based examination that is currently 
being administered is being replaced by an all-electronic examination 
in an ongoing effort to fully modernize the customs broker testing 
procedure. This proposed fee increase will allow CBP to fully recover 
all of its costs, including those to provide a fully electronic version 
of the customs broker examination beginning in April 2017. As discussed 
above, the fee increase is neither a cost nor a benefit to this rule 
since the broker examination fee is already an established fee. Thus, 
the proposed fee increase is considered a transfer payment. As stated 
above, in order to inform stakeholders of all potential effects of the 
proposed rule, CBP has analyzed the distributional

[[Page 63152]]

effects of the proposed rule in section ``5. Distributional Impacts.''
    In addition to proposing an increase in the examination fee, CBP is 
proposing to change the date the examination is given from the first 
Monday in October and April to the fourth Monday in October and April. 
Administering the examination on the first Monday in October is 
administratively difficult because it is too close to the conclusion of 
the Federal Government's fiscal year at the end of September. With this 
rule's changes, CBP and the examinees will benefit through greater 
predictability in years where federal budgets are uncertain.

5. Distributional Impact

    Under the proposed rule, the customs broker license examination fee 
will increase from $200 to $390 in order for CBP to fully recover all 
of its costs to administer the broker examination. As noted above, 
these costs are increasing due to a shift in the administration of the 
examination that will go into effect beginning with the April 2017 
examination.
    The proposed customs broker license examination fee will cost 
individuals an additional $190 when they register to take the customs 
broker license examination. As discussed above, CBP estimates that 
there will be 2,600 examinees per year (1,300 per session) who will 
take the customs broker license examination. Using this estimate and 
the additional cost that each examinee will incur, CBP estimates that 
the proposed fee increase will result in a transfer payment to the 
government of approximately $494,000 per year (2,600 examinees per year 
* $190 proposed fee increase = $494,000).

Regulatory Flexibility Act

    This section examines the impact of the rule on small entities as 
required by the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), as 
amended by the Small Business Regulatory Enforcement and Fairness Act 
of 1996 (SBREFA). A small entity may be a small business (defined as 
any independently owned and operated business not dominant in its field 
that qualifies as a small business per the Small Business Act); a small 
not-for-profit organization; or a small governmental jurisdiction 
(locality with fewer than 50,000 people).
    The proposed rule will apply to all prospective brokers who take 
the broker examination. The fee is paid by the individual taking the 
broker examination and individuals are not considered small entities 
under the Regulatory Flexibility Act. However, many of these 
individuals are sole proprietors or are reimbursed for this expense by 
their brokerage, so we consider the impact on these entities. As shown 
in Exhibit 1 below, approximately 96 percent of businesses entities in 
this North American Industry Classification (NAICS) code are small. As 
this rule would affect any prospective broker or his/her employer, 
regardless of its size, this rule has an impact on a substantial number 
of small entities.
    The direct impact of this proposed rule on each individual customs 
broker examinee, or his/her employer, is the fee increase of $190. To 
assess whether this is a significant impact, we examine the annual 
revenue for customs brokers. The U.S. Census Bureau categorizes customs 
brokers under the NAICS code 488510. In addition to customs brokers, 
this NAICS code also includes freight forwarders.\3\ The Small Business 
Administration (SBA) publishes size standards that determine the 
criteria for being considered a small entity for the purposes of this 
analysis. The SBA considers a business entity classified under the 
488510 NAICS code as small if it has less than $15 million in annual 
receipts. We obtained the number of firms in each revenue category 
provided by the U.S. Census Bureau (see Exhibit 1 below). To estimate 
the average revenue of all firms under this NAICS code, we first 
assumed that each firm in each revenue category had receipts of the 
midpoint of the range. For example, we assumed that the 4,354 firms 
with annual receipts of between $100,000 and $499,000 had average 
receipts of $300,000. We then used the number of firms in each category 
to calculate the weighted average revenue across all small firms. Using 
this method, we estimate that the weighted average revenue for small 
businesses in this NAICS code is $1,496,197. The $190 increase in the 
broker examination fee, then, represents 0.01 percent of the weighted 
average annual revenue for brokers. We acknowledge that a company might 
pay for more than one examination annually which would increase the 
total cost to that company, but the impact would still be small. For 
example, even if a company paid for 10 exams annually, the total cost 
of $1,900 would represent 0.1 percent of the weighted average annual 
revenue for brokers. CBP does not consider 0.01 percent or even 0.1 
percent of revenue to be a significant economic impact. Accordingly, 
CBP certifies that this proposed rule will not have a significant 
economic impact on a substantial number of small entities.
---------------------------------------------------------------------------

    \3\ http://www.census.gov/cgi-bin/sssd/naics/naicsrch?code=488510&search=2012%20NAICS%20Search.

                              Exhibit 1--Business Entity Data for NAICS Code 488510
----------------------------------------------------------------------------------------------------------------
                                         Number of
   Annual receipts (Midpoint) ($)          firms                                 Small
----------------------------------------------------------------------------------------------------------------
<100,000 (50,000)...................           1,834  Yes.
100,000-499,999 (300,000)...........           4,354  Yes.
500,000-999,999 (750,000)...........           2,040  Yes.
1,000,000-2,499,999 (1,750,000).....           2,300  Yes.
2,500,000-4,999,999 (3,750,000).....           1,087  Yes.
5,000,000-7,499,999 (6,250,000).....             427  Yes.
7,500,000-9,999,999 (8,750,000).....             242  Yes.
10,000,000-14,999,999 (12,500,000)..             233  Yes.
>15,000,000.........................             548  No.
                                     ---------------------------------------------------------------------------
    Total...........................          13,065  96 Percent are Small (12,517/13,065).
----------------------------------------------------------------------------------------------------------------
Source: U.S. Census Bureau.


[[Page 63153]]

Signing Authority

    This document is being issued in accordance with 19 CFR 0.2(a), 
which provides that the authority of the Secretary of the Treasury with 
respect to CBP regulations that are not related to customs revenue 
functions was transferred to the Secretary of Homeland Security 
pursuant to section 403(l) of the Homeland Security Act of 2002. 
Accordingly, this proposed rule to amend such regulations may be signed 
by the Secretary of Homeland Security (or his delegate).

List of Subjects in 19 CFR Part 111

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

Proposed Amendments to the CBP Regulations

    For the reasons set forth in the preamble, part 111 of title 19 of 
the Code of Federal Regulations (19 CFR part 111) is proposed to be 
amended as set forth below.

PART 111--CUSTOMS BROKERS

0
1. The 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.

    Section 111.3 also issued under 19 U.S.C. 1484, 1498; Section 
111.96 also issued under 19 U.S.C. 58c, 31 U.S.C. 9701.


Sec.  111.11  [Amended]

0
2. In Sec.  111.11, paragraph (a)(4) is amended by removing the words 
``a written'' and adding in its place the word ``an''.


Sec.  111.12  [Amended]

0
3. In Sec.  111.12, paragraph (a) is amended by removing the word 
``written'' from the two places that it appears in the fifth and sixth 
sentences.
0
2. In Sec.  111.13:
0
a. The section heading is revised;
0
b. Paragraph (a) is amended by:
0
1. Removing the word ``written'' from the first sentence;
0
2. Removing the words ``and graded at'' from the second sentence and 
adding in their place the word ``by''; and
0
3. Removing the phrase ``Headquarters, Washington, DC'' from the second 
sentence;
0
c. Paragraph (b) is revised;
0
d. Paragraph (c) is removed;
0
e. Paragraph (d) is redesignated as paragraph (c) and revised;
0
f. Paragraph (e) is redesignated as paragraph (d); and
0
g. Paragraph (f) is redesignated as paragraph (e) and revised.
    The revisions read as follows:


Sec.  111.13  Examination for individual license.

* * * * *
    (b) Basic requirements, date, and place of examination. In order to 
be eligible to take the examination, an individual must on the date of 
examination be a citizen of the United States who has attained the age 
of 18 years and who is not an officer or employee of the United States 
Government. CBP will publish a notice announcing each examination on 
its Web site. Examinations will be given on the fourth Monday in April 
and October unless the regularly scheduled examination date conflicts 
with a national holiday, religious observance, or other foreseeable 
event and the agency publishes in the Federal Register an appropriate 
notice of a change in the examination date. An individual who intends 
to take the examination must complete the electronic application at 
least 30 calendar days prior to the scheduled examination date and must 
remit the $390 examination fee prescribed in Sec.  111.96(a) at that 
time. CBP will give notice of the exact time and place for the 
examination.
    (c) Failure to appear for examination. If a prospective examinee 
advises the Office of Trade at the Headquarters of U.S. Customs and 
Border Protection, Attn: Broker Management Branch, electronically in a 
manner specified by CBP at least 2 working days prior to the date of a 
regularly scheduled examination that he will not appear for the 
examination, CBP will refund the $390 examination fee referred to in 
paragraph (b) of this section.
* * * * *
    (e) Appeal of failing grade on examination. If an examinee fails to 
attain a passing grade on the examination taken under this section, the 
examinee may challenge that result by filing a written appeal with the 
Office of Trade at the Headquarters of U.S. Customs and Border 
Protection, Attn: Broker Management Branch, within 60 calendar days 
after the date of the written notice provided for in paragraph (d) of 
this section. CBP will provide to the examinee written notice of the 
decision on the appeal. If the CBP decision on the appeal affirms the 
result of the examination, the examinee may request review of the 
decision on the appeal by writing to the Executive Assistant 
Commissioner, Office of Trade, U.S. Customs and Border Protection, 
within 60 calendar days after the date of the notice on that decision.


Sec.  111.96  [Amended]

0
3. In Sec.  111.96:
0
a. Paragraph (a) is amended by removing the word ``written'' from the 
second sentence and removing the phrase ``$200 examination fee'' from 
the second sentence and adding in its place the phrase ``$390 
examination fee''; and
0
b. Paragraph (e) is amended by removing the words ``United States 
Customs Service'' and adding in their place the words ``U.S. Customs 
and Border Protection, or by another CBP-approved payment method''.

    Dated: September 8, 2016.
Jeh Charles Johnson,
Secretary.
[FR Doc. 2016-21935 Filed 9-13-16; 8:45 am]
 BILLING CODE 9111-14-P