(a) Due diligence by broker. Each broker must exercise due diligence in making financial settlements, in answering correspondence, and in preparing or assisting in the preparation and filing of records relating to any customs business matter handled by him as a broker. Payment of duty, tax, or other debt or obligation owing to the Government for which the broker is responsible, or for which the broker has received payment from a client, must be made to the Government on or before the date that payment is due. Payments received by a broker from a client after the due date must be transmitted to the Government within 5 working days from receipt by the broker. Each broker must provide a written statement to a client accounting for funds received for the client from the Government, or received from a client where no payment to the Government has been made, or received from a client in excess of the Governmental or other charges properly payable as part of the client's customs business, within 60 calendar days of receipt. No written statement is required if there is actual payment of the funds by a broker.
(b) Notice to client of method of payment. (1) All brokers must provide their clients with the following written notification:
If you are the importer of record, payment to the broker will not relieve you of liability for customs charges (duties, taxes, or other debts owed CBP) in the event the charges are not paid by the broker. Therefore, if you pay by check, customs charges may be paid with a separate check payable to the “U.S. Customs and Border Protection” which will be delivered to CBP by the broker.
(2) The written notification set forth in paragraph (b)(1) of this section must be provided by brokers as follows:
(i) On, or attached to, any power of attorney provided by the broker to a client for execution on or after September 27, 1982; and
(ii) To each active client no later than February 28, 1983, and at least once at any time within each 12-month period after that date. An active client means a client from whom a broker has obtained a power of attorney and for whom the broker has transacted customs business on at least two occasions within the 12-month period preceding notification.
Notes of Decisions
United States v. Puentes, 2017 CIT 33 (Ct. Intl. Trade 2017).
· cites it 28× “¶ 25 (Count II, re: 19 C.F.R. § 111.29 ); id. ¶ 31 (Count II, re: 19 C.”
Byung Wu Lee v. United States, 329 F.3d 817 (Fed. Cir. 2003).
· cites it 8× “Lee’s failure to tender timely payment of the original $250 penalty within 60 days of the final determination, a violation of 19 C.F.R. §§ 111.29 and 111.94. 1 Specification II dealt with Mr.”
United States v. Robert E. Landweer & Co., 2012 CIT 17 (Ct. Intl. Trade 2012).
· cites it 9× “§ 1641 (d) and 19 C.F.R. §§ 111.29 and 143.6, and was liable to the United States for a penalty in the amount of $30,000 pursuant to 19 U.”
Neochem Corp. v. Behring Int'l, Inc. (In Re Behring Int'l, Inc.), 61 B.R. 896 (Bankr. N.D. Tex. 1986).
· cites it 4× “Pursuant to 19 C.F.R. § 111.29 (a) (1985), Behring, as a customs broker, upon receipt of funds from Neochem for payment of duty, tax, or other debt or obligation owing to the government, was required to pay the United States Customs Service within thirty days from the date of…”
Lee v. United States, 196 F. Supp. 2d 1351 (Ct. Intl. Trade 2002).
· cites it 8× “Lee’s failures to make timely payment themselves constituted new breaches of Customs regulations' — specifically, 19 C.F.R. §§ 111.29 and 111.94. 1 Invoking 19 C.”
United States v. Ricci, 985 F. Supp. 125 (Ct. Intl. Trade 1997).
· cites it 4× “Customs asserts that Ricci violated 19 C.F.R. § 111.29 (a), which in 1990, when the violations occurred, provided: Payment of duty, tax, or other debt or obligation owing to the Government for which the broker is responsible, or for which the broker has received payment from a…”
United States v. Matthew Yip, 930 F.2d 142 (2d Cir. 1991).
· cites it 2× “See 19 C.F.R. § 111.29 (b) (1990). Thus, if the broker does not submit the form 7501 and payment within 10 days, then the importer, as principal, is subject to a penalty assessed by Customs.”
Anderson v. United States, 799 F. Supp. 1198 (Ct. Intl. Trade 1992).
· cites it 3× “Specifically, the AU concluded that plaintiff had violated the following sections: 19 C.F.R. § 111.29 2 by failing to exercise due diligence in making financial settlements, payments of duties, and written accountings to clients; 19 C.”
United States v. Pan Pac. Textile Grp., Inc., 395 F. Supp. 2d 1244 (Ct. Intl. Trade 2005).
“See 19 C.F.R. § 111.29 (b)(1) ("If you are the importer of record, payment to the broker will not relieve you of liability for Customs charges (duties, taxes, or other debts owed Customs) in the event the charges are not paid by the broker.”
Annotations are extracted automatically from the opinions in the
Syfert caselaw corpus and ranked by authority, recency, and
treatment. Dots show Syfertize treatment of the citing case itself.