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Broker Compliance

October 2020 (AM) — Question 6

When a broker is employed for the transaction of customs business by an unlicensed person, who is not the actual importer, the broker must transmit ________________.

Why this answer

19 CFR 111.36(a) governs this exact triangle: when a broker is employed for customs business by an unlicensed person who is not the actual importer, typically a forwarder-style intermediary, the broker must transmit directly to the actual importer either a copy of the bill for services rendered or a copy of the entry, subject to narrow exceptions such as a written waiver from the importer. The rule exists so the real importer knows who transacted its business and at what cost. The distractors invoke familiar systems and forms — ACS, ACE, the 5106, powers of attorney — none of which plays any part in this disclosure duty. Watch for: Reaching for a familiar form or filing system instead of the importer-disclosure duty.

Original CBLE Simulator explanation — the question and key above are CBP's; this analysis is ours. Verify against the current edition before relying on it in practice.

CBP's cited authority

§ 19CFR§111.36(a)

Answer and citations as published in CBP's official answer key for the October 2020 (AM) examination.

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