C.F.R. » Title 19 » CHAPTER I—U.S. CUSTOMS AND BORDER PROTECTION, DEPARTMENT OF HOMELAND SECURITY; DEPARTMENT OF THE TREASURY › PART 111—CUSTOMS BROKERS › Subpart C—Duties and Responsibilities of Customs Brokers

19 C.F.R. § 111.36

Relations with unlicensed persons

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(a) Employment by unlicensed person other than importer. 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 to the actual importer either a copy of his bill for services rendered or a copy of the entry, unless the merchandise was purchased on a delivered duty-paid basis or unless the importer has in writing waived transmittal of the copy of the entry or bill for services rendered.

(b) Service to others not to benefit unlicensed person. Except as otherwise provided in paragraph (c) of this section, a broker must not enter into any agreement with an unlicensed person to transact customs business for others in such manner that the fees or other benefits resulting from the services rendered for others inure to the benefit of the unlicensed person.

(c) Relations with a freight forwarder. A broker may compensate a freight forwarder for referring brokerage business, subject to the following conditions:

(1) The importer or other party in interest is notified in advance by the forwarder or broker of the name of the broker selected by the forwarder for the handling of his Customs transactions;

(2) The broker transmits directly to the importer or other party in interest:

(i) A true copy of his brokerage charges if the fees and charges are to be collected by or through the forwarder, unless this requirement is waived in writing by the importer or other party in interest; or

(ii) A statement of his brokerage charges and an itemized list of any charges to be collected for the account of the freight forwarder if the fees and charges are to be collected by or through the broker;

(3) The broker must execute a customs power of attorney directly with the importer of record or drawback claimant, and not via a freight forwarder or other third party, to transact customs business for that importer of record or drawback claimant. No part of the agreement of compensation between the broker and the forwarder, nor any action taken pursuant to the agreement, can forbid or prevent direct communication between the importer of record, drawback claimant, or other party in interest and the broker; and

(4) In making the agreement and in all actions taken pursuant to the agreement, the broker remains subject to all other provisions of this part.

[T.D. 00-17, 65 FR 13891, Mar. 15, 2000, as amended by CBP Dec. 22-21, 87 FR 63318, Oct. 18, 2022]
Notes of Decisions
Cited in 4 cases (1 in the last 5 years), 1988–2025 · leading case: Fusco v. United States Treasury Dep't, 695 F. Supp. 1189 (Ct. Intl. Trade 1988).
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Fusco v. United States Treasury Dep't, 695 F. Supp. 1189 (Ct. Intl. Trade 1988). · cites it 6× “The conduct which led to the violation of 19 C.F.R. §§ 111.36 (a) 9 and 111.37 10 of the Customs regulations was undisputed.”
United States v. Santos, 2012 CIT 157 (Ct. Intl. Trade 2012). · cites it 3× “Count I Count I alleges that Santos violated 19 C.F.R. § 111.36 when he conducted business with a freight forwarder, SPR, without forwarding a copy of his bill to the importer of record.”
Urbano v. United States, 967 F. Supp. 1322 (Ct. Intl. Trade 1997). “30 (c), (e) (1994) (discussing the requirements for notification if the broker changes his business address, organization, name or location of business records); 19 C.F.R. 111.36(a) (1994) (forbidding brokers from ”enter[ing] into any agreement with an unlicensed person to…”
Chen v. United States, 2025 CIT 117 (Ct. Intl. Trade 2025). · cites it 2× “The answer to this question is grounded in 19 C.F.R. § 111.36 (a), which states: 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 to the actual importer either a copy of his bill…”
— 19 C.F.R. § 111.36(a) — 2 cases
Fusco v. United States Treasury Dep't, 695 F. Supp. 1189 (Ct. Intl. Trade 1988). “The conduct which led to the violation of 19 C.F.R. §§ 111.36 (a) 9 and 111.37 10 of the Customs regulations was undisputed.”
Urbano v. United States, 967 F. Supp. 1322 (Ct. Intl. Trade 1997). “30 (c), (e) (1994) (discussing the requirements for notification if the broker changes his business address, organization, name or location of business records); 19 C.F.R. 111.36(a) (1994) (forbidding brokers from ”enter[ing] into any agreement with an unlicensed person to…”
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