Customs Broker License Examination Individual Eligibility Requirements, 52456-52458 [2010-21254]
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Federal Register / Vol. 75, No. 165 / Thursday, August 26, 2010 / Rules and Regulations
DEPARTMENT OF HOMELAND
SECURITY
U.S. Customs and Border Protection
19 CFR Part 111
[USCBP–2008–0059; CBP Dec. 10–28]
RIN 1651–AA74
Customs Broker License Examination
Individual Eligibility Requirements
Customs and Border Protection,
Department of Homeland Security.
ACTION: Final rule.
AGENCY:
This final rule adopts, with
one modification, proposed changes
U.S. Customs and Border Protection
(CBP) regulations regarding the
requirements that an individual must
satisfy in order to take the written
examination for an individual customs
broker’s license, which is administered
by CBP. Under this final rule, 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 U.S. Government.
These changes will facilitate the overall
licensing process by enabling
individuals who have attained the age of
18 to take the examination in order to
gain valuable experience while ensuring
they would not be precluded from
obtaining a license upon turning 21
because of citizenship or employment
status.
DATES: Effective Date: This final rule is
effective on September 27, 2010.
FOR FURTHER INFORMATION CONTACT:
Anita Harris, Chief, Broker Compliance
Branch, Office of International Trade,
(202) 863–6069.
SUPPLEMENTARY INFORMATION:
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SUMMARY:
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,
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, section 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
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rules and regulations relating to the
customs business of brokers as
necessary to protect importers and the
revenue of the United States and to
carry out the provisions of section 641.
The Homeland Security Act of 2002,
6 U.S.C. 101 et seq., Public Law 107–
296 (Nov. 25, 2002) (the ‘‘HSA’’)
established the Department of
Homeland Security (DHS) and
transferred the U.S. Customs Service
from the Department of the Treasury to
DHS, effective March 1, 2003. Section
1502 of the HSA renamed the ‘‘Customs
Service’’ as the ‘‘Bureau of Customs and
Border Protection,’’ which has since
been renamed U.S. Customs and Border
Protection (CBP). See 72 FR 20131
(April 23, 2007) and 75 FR 12445
(March 16, 2010).
Treasury Department Order No. 100–
16 (see Appendix to 19 CFR Part 0)
delegates to DHS the authority to
prescribe the rules and regulations
relating to customs brokers.
The regulations issued under the
authority of section 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
§ 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 § 111.13
(19 CFR 111.13). Paragraph (b) of
§ 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 § 111.96. There were
previously no additional requirements
in § 111.13 that were required to be
fulfilled in order for an individual to sit
for the customs broker’s license
examination.
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Notice of Proposed Rulemaking
On May 27, 2008, CBP published a
notice of proposed rulemaking in the
Federal Register (73 FR 30328; the
‘‘NPRM’’) that proposed to amend
§ 111.13 to more closely align the basic
requirements that an individual must
satisfy to take the written examination
for a customs broker’s license with the
basic requirements an individual must
satisfy to obtain an customs broker’s
license. In order to be eligible to take the
written examination under the
amendments proposed in the NPRM, an
individual would be required to be a
U.S. citizen on the date of examination
and not be an officer or employee of the
U.S. Government, and to have attained
the age of 21 prior to the date of
examination.
The NPRM explained that 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. It was also 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. In
addition, by barring U.S. Government
employees from taking the examination,
the changes proposed in the NPRM
would help to eliminate the appearance
of any conflict of interest or unfair
advantage that might be associated with
their Federal Government employment.
The NPRM also proposed nonsubstantive amendments to § 111.13(a),
(c), and (e) to reflect the nomenclature
changes effected by the transfer of the
U.S. Customs Service to the Department
of Homeland Security.
Comments were solicited in the
NPRM of May 27, 2008. The comment
period closed on July 28, 2008.
Discussion of Comments
Four commenters responded to the
solicitation of comments in the NPRM.
A description of the comments received
and CBP’s response is set forth below.
Comment: One commenter did not
support the proposed requirement that
an individual attain the age of 21 prior
to the date of the broker examination
because this requirement would inhibit
the career potential of individuals who
can currently take and pass the
examination and subsequently apply to
obtain a customs broker’s license upon
turning 21 years old. In this regard, the
commenter suggests that CBP reduce the
age limitation proposed in the NPRM.
CBP Response: After further
considering the age limit issue, CBP
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Federal Register / Vol. 75, No. 165 / Thursday, August 26, 2010 / Rules and Regulations
agrees with the commenter that the limit
should be lowered from the proposed 21
years to 18 years of age to provide
greater opportunities for individuals
who have graduated from high school
and are in the process of gaining work
experience before being eligible to apply
for a broker’s license. CBP notes that the
age of majority (adulthood) in the
United States is generally considered to
be 18 years and that age 18 is consistent
with the requirement that an application
for an individual broker’s license must
be submitted within a 3-year period
after the applicant takes and passes the
written examination. See 19 CFR
111.12(a). A less restrictive age
requirement ensures that an individual
will still be able to apply to obtain a
license upon turning 21 years old while
having the opportunity to work under
the supervision and control of a
licensed broker or brokerage for a
greater time period after having taken
the exam. Accordingly, since CBP is
adopting the commenter’s suggestion to
modify the age limit, § 111.13(b) is
amended in the final rule to require that
an individual must only be 18 years old
on the date of the examination.
Comment: One commenter, an
association that provides a preparatory
training course for individuals
intending to take the written
examination, stated that it was initially
concerned that the age and citizenship
requirements proposed in the NPRM
would negatively impact its business by
reducing the number of applicants who
are eligible to sit for the examination.
However, the commenter specifically
noted that only one out of 203
applicants enrolled in its course for the
October 2008 examination would not
have met the age and citizenship
requirements to take the examination as
proposed in the NPRM. As such, the
commenter supports the proposed
amendments since there was no
economic impact on its business.
CBP Response: CBP appreciates the
commenter’s input and its review of the
potential impact that the proposed
amendments would have had on its
business. Since CBP is modifying the
age requirement from 21 years to 18
years based upon the input of another
commenter, CBP believes there is even
less of a restriction on those who would
likely enroll in the commenter’s
preparatory course.
Comment: A commenter opposed the
amendments in the NPRM based upon
the amount of time it takes to obtain a
license after passing the examination.
The commenter would only support the
proposed amendments if CBP was
required to issue a license within six
months of passing the examination.
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CBP Response: CBP understands the
commenter’s concern regarding the
timely issuance of customs brokers’
licenses after passing the examination.
However, CBP believes that requiring
licenses to be issued within a
mandatory timeframe would not be
operationally practical or in furtherance
of CBP’s mission of facilitating
legitimate trade. In this regard, CBP
initially notes that the broker’s
examination is intended only to
evaluate and verify an applicant’s
knowledge of relevant customs laws and
regulations. The background
investigation described in § 111.14,
which must be completed after an
individual passes the examination but
before a license is issued, is intended to
verify the accuracy of the statements
made in the application, the business
integrity of the applicant, and the moral
character and reputation of the
applicant. CBP has a legitimate interest
in closely scrutinizing applicants who
will be transacting customs business on
behalf of importers before granting a
license. Considering the general scope
of the background investigation, the
circumstances unique to each
applicant’s background that may require
more time to investigate, and the
number of Federal agencies that may
ultimately assist in the investigation
(e.g., Federal Bureau of Investigation,
U.S. Immigration and Customs
Enforcement, CBP), it is clear that
imposing a regulatory requirement to
issue a license within an arbitrary time
frame would not be operationally
practical and would hinder CBP’s
ability to verify that licenses are issued
to qualified individuals.
Comment: One commenter, a large
clothing retailer, did not support the
amendment in the NPRM to preclude
non-U.S. citizens from taking the
examination. In support of its position,
the commenter states that the private
sector does not have an equivalent to
the examination and notes that
employers may hire and promote
individuals based solely upon their
ability to pass the examination. In
addition, the commenter states that
preventing non-U.S. citizens from taking
the examination would be
discriminatory since it would prevent
legal resident aliens from advancing
their careers in the sense that the
examination is the only measurement of
an individual’s competence in the trade
compliance field.
CBP Response: CBP initially notes
that the customs broker’s license
examination is not designed to be used
as a tool by private sector employers to
gauge whether job applicants or current
employees possess the requisite
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52457
knowledge to be employed or promoted
in the trade compliance field. Rather,
the examination is administered so that
CBP can evaluate and verify an
applicant’s knowledge of relevant
customs laws and regulations for
purposes of granting an individual
customs broker’s license. In addition,
CBP disagrees that the examination is
the only measurement of an individual’s
competence in the trade compliance
field because employers have the option
to utilize privately-developed
benchmarks or other academic tools to
evaluate an individual’s aptitude.
Moreover, CBP disagrees that preventing
non-U.S. citizens from taking the
examination would be discriminatory
because the amendment set forth in the
NPRM and adopted in this document
will merely align the requirement for
taking the examination with the existing
statutory requirement of citizenship for
obtaining a license. See 19 U.S.C.
1641(b)(2).
Conclusion
After analysis of the comments and
further review of matter, CBP has
decided to adopt as final, with the
modification discussed above in the
comment analysis, the NPRM published
in the Federal Register (73 FR 30328) on
May 27, 2008. In addition, minor
editorial changes have been made to the
regulatory text for clarity.
Regulatory Flexibility Act
Pursuant to the provisions of the
Regulatory Flexibility Act (5 U.S.C. 601
et seq.), it is certified that the
amendments in this document do not
have a significant economic impact on
a substantial number of small entities
because the final rule more closely
aligns 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 as to
citizenship and employment.
Accordingly, the amendments set forth
in this document are not subject to the
regulatory analysis or other
requirements of 5 U.S.C. 603 and 604.
Executive Order 12866
This final rule does not meet the
criteria to be considered an
economically ‘‘significant regulatory
action’’ under Executive Order 12866
because it will not result in the
expenditure of over $100 million in any
one year. The Office of Management and
Budget (OMB) has not reviewed this
rule under that Order.
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52458
Federal Register / Vol. 75, No. 165 / Thursday, August 26, 2010 / Rules and Regulations
Signing Authority
DEPARTMENT OF THE TREASURY
This document is being issued by CBP
in accordance with § 0.1(b)(1) of the
CBP regulations (19 CFR 0.1(b)(1)).
Internal Revenue Service
List of Subject in 19 CFR Part 111
[TD 9500]
Administrative practice and
procedure, Brokers, Customs duties and
inspection, Imports, Licensing,
Reporting and recordkeeping
requirements.
RIN 1545–BJ47
Amendments to the CBP Regulations
26 CFR Part 301
Disclosures of Return Information
Reflected on Returns to Officers and
Employees of the Department of
Commerce for Certain Statistical
Purposes and Related Activities
■
For the reasons set forth in the
preamble, part 111 of title 19 of the
Code of Federal Regulations (19 CFR
part 111) is amended as set forth below.
AGENCY:
PART 111—CUSTOMS BROKERS
SUMMARY:
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 § 111.13:
a. Paragraph (a) is amended by
removing the words ‘‘Customs
Headquarters’’ and adding in its place,
the words ‘‘Customs and Border
Protection (CBP) 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 addition and revision to
paragraph (b) read as follows:
■
■
§ 111.13
license.
Written examination for individual
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*
*
*
*
*
(b) Basic requirements, date, and
place of examination. In order to be
eligible to take the written 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. * * *
*
*
*
*
*
Dated: August 18, 2010.
Alan Bersin,
Commissioner, U.S. Customs and Border
Protection.
[FR Doc. 2010–21254 Filed 8–25–10; 8:45 am]
BILLING CODE 9111–14–P
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Internal Revenue Service (IRS),
Treasury.
ACTION: Final and temporary
regulations.
This document contains final
and temporary regulations that
authorize the disclosure of certain items
of return information to the Bureau of
the Census (Bureau) in conformance
with section 6103(j)(1) of the Internal
Revenue Code (Code). The final and
temporary regulations are made
pursuant to a request from the Secretary
of Commerce. These regulations
facilitate the assistance of the IRS to the
Bureau in its statistics programs and
require no action by taxpayers and have
no effect on their tax liabilities. The text
of the temporary regulations also serves
as the text of the proposed regulations
[REG–137486–09] set forth in the
Proposed Rules section in this issue of
the Federal Register.
DATES: Effective Date: These regulations
are effective on August 26, 2010.
Applicability Date: For dates of
applicability for this regulation, see
§§ 301.6103(j)(1)–1(e) and
301.6103(j)(1)–T(e).
FOR FURTHER INFORMATION CONTACT:
Melissa Segal at (202) 622–7950 (not a
toll-free call).
SUPPLEMENTARY INFORMATION:
Background
Section 6103(j)(1)(A) authorizes the
Secretary of Treasury to furnish, upon
written request by the Secretary of
Commerce, such return or return
information as the Secretary of Treasury
may prescribe by regulation to officers
and employees of the Bureau of the
Census (Bureau) for the purpose of, but
only to the extent necessary in, the
structuring of censuses and conducting
related statistical activities authorized
by law. Section 301.6103(j)(1)–1 of the
regulations further defines such
purposes by reference to 13 U.S.C.
chapter 5 and provides an itemized
description of the return information
authorized to be disclosed for such
purposes.
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This document adopts final
regulations that authorize the IRS to
disclose an additional item of return
information requested by the Secretary
of Commerce to assist the Bureau in
identifying companies that are actively
engaged in research and development
activities for the Bureau’s annual Survey
of Industrial Research and
Development. In response to this
request, on December 31, 2007, the IRS
and the Treasury Department published
temporary regulations under
§ 6103(j)(1). See TD 9373 (72 FR 74192).
Also on December 31, 2007, the IRS and
the Treasury Department issued a notice
of proposed rulemaking crossreferencing those temporary regulations.
See REG–147832–07 (72 FR 74246). No
comments were received and no public
hearing was requested or held. This
Treasury decision adopts the proposed
rules with no change.
This Treasury decision also contains
temporary regulations that authorize the
disclosure of additional items of return
information requested by the Secretary
of Commerce on the grounds that the
information is necessary to allow the
Bureau to study a developing trend of
increased use of contract workers. The
text of the temporary regulations also
serves as the text of the proposed
regulations set forth in the notice of
proposed rulemaking on this subject in
the Proposed Rules section of this issue
of the Federal Register.
Explanation of Provisions
By letter dated February 6, 2006, the
Secretary of Commerce requested that
an additional item of return information
be disclosed to the Bureau’s annual
Survey of Industrial Research and
Development. As duly requested by the
Secretary of Commerce and set forth in
the proposed regulations, the final
regulation authorizes the disclosure of
categorical information on total
qualified research expenses in three
ranges: Greater than zero, but less than
$1 million; greater than or equal to $1
million, but less than $3 million; and,
greater than or equal to $3 million.
Separately, by letter dated July 24,
2009, the Secretary of Commerce
requested that additional items of return
information be disclosed to the Bureau
for purposes of allowing the Bureau to
study a developing trend of increased
use of contract workers. Specifically, the
Secretary of Commerce requested
disclosure of the following additional
items: (1) Total number of documents
reported on Form 1096 transmitting
Forms 1099–MISC and (2) Total amount
reported on Form 1096 transmitting
Forms 1099–MISC.
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]]>Agencies
[Federal Register Volume 75, Number 165 (Thursday, August 26, 2010)]
[Rules and Regulations]
[Pages 52456-52458]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-21254]
[[Page 52456]]
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DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
19 CFR Part 111
[USCBP-2008-0059; CBP Dec. 10-28]
RIN 1651-AA74
Customs Broker License Examination Individual Eligibility
Requirements
AGENCY: Customs and Border Protection, Department of Homeland Security.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This final rule adopts, with one modification, proposed
changes U.S. Customs and Border Protection (CBP) regulations regarding
the requirements that an individual must satisfy in order to take the
written examination for an individual customs broker's license, which
is administered by CBP. Under this final rule, 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 U.S. Government. These
changes will facilitate the overall licensing process by enabling
individuals who have attained the age of 18 to take the examination in
order to gain valuable experience while ensuring they would not be
precluded from obtaining a license upon turning 21 because of
citizenship or employment status.
DATES: Effective Date: This final rule is effective on September 27,
2010.
FOR FURTHER INFORMATION CONTACT: Anita Harris, Chief, Broker Compliance
Branch, Office of International Trade, (202) 863-6069.
SUPPLEMENTARY INFORMATION:
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, 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, section 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 United States and to carry out
the provisions of section 641.
The Homeland Security Act of 2002, 6 U.S.C. 101 et seq., Public Law
107-296 (Nov. 25, 2002) (the ``HSA'') established the Department of
Homeland Security (DHS) and transferred the U.S. Customs Service from
the Department of the Treasury to DHS, effective March 1, 2003. Section
1502 of the HSA renamed the ``Customs Service'' as the ``Bureau of
Customs and Border Protection,'' which has since been renamed U.S.
Customs and Border Protection (CBP). See 72 FR 20131 (April 23, 2007)
and 75 FR 12445 (March 16, 2010).
Treasury Department Order No. 100-16 (see Appendix to 19 CFR Part
0) delegates to DHS the authority to prescribe the rules and
regulations relating to customs brokers.
The regulations issued under the authority of section 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 were previously no additional requirements in Sec.
111.13 that were required to be fulfilled in order for an individual to
sit for the customs broker's license examination.
Notice of Proposed Rulemaking
On May 27, 2008, CBP published a notice of proposed rulemaking in
the Federal Register (73 FR 30328; the ``NPRM'') that proposed to amend
Sec. 111.13 to more closely align the basic requirements that an
individual must satisfy to take the written examination for a customs
broker's license with the basic requirements an individual must satisfy
to obtain an customs broker's license. In order to be eligible to take
the written examination under the amendments proposed in the NPRM, an
individual would be required to be a U.S. citizen on the date of
examination and not be an officer or employee of the U.S. Government,
and to have attained the age of 21 prior to the date of examination.
The NPRM explained that 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. It was
also 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. In addition, by barring U.S.
Government employees from taking the examination, the changes proposed
in the NPRM would help to eliminate the appearance of any conflict of
interest or unfair advantage that might be associated with their
Federal Government employment.
The NPRM also proposed non-substantive amendments to Sec.
111.13(a), (c), and (e) to reflect the nomenclature changes effected by
the transfer of the U.S. Customs Service to the Department of Homeland
Security.
Comments were solicited in the NPRM of May 27, 2008. The comment
period closed on July 28, 2008.
Discussion of Comments
Four commenters responded to the solicitation of comments in the
NPRM. A description of the comments received and CBP's response is set
forth below.
Comment: One commenter did not support the proposed requirement
that an individual attain the age of 21 prior to the date of the broker
examination because this requirement would inhibit the career potential
of individuals who can currently take and pass the examination and
subsequently apply to obtain a customs broker's license upon turning 21
years old. In this regard, the commenter suggests that CBP reduce the
age limitation proposed in the NPRM.
CBP Response: After further considering the age limit issue, CBP
[[Page 52457]]
agrees with the commenter that the limit should be lowered from the
proposed 21 years to 18 years of age to provide greater opportunities
for individuals who have graduated from high school and are in the
process of gaining work experience before being eligible to apply for a
broker's license. CBP notes that the age of majority (adulthood) in the
United States is generally considered to be 18 years and that age 18 is
consistent with the requirement that an application for an individual
broker's license must be submitted within a 3-year period after the
applicant takes and passes the written examination. See 19 CFR
111.12(a). A less restrictive age requirement ensures that an
individual will still be able to apply to obtain a license upon turning
21 years old while having the opportunity to work under the supervision
and control of a licensed broker or brokerage for a greater time period
after having taken the exam. Accordingly, since CBP is adopting the
commenter's suggestion to modify the age limit, Sec. 111.13(b) is
amended in the final rule to require that an individual must only be 18
years old on the date of the examination.
Comment: One commenter, an association that provides a preparatory
training course for individuals intending to take the written
examination, stated that it was initially concerned that the age and
citizenship requirements proposed in the NPRM would negatively impact
its business by reducing the number of applicants who are eligible to
sit for the examination. However, the commenter specifically noted that
only one out of 203 applicants enrolled in its course for the October
2008 examination would not have met the age and citizenship
requirements to take the examination as proposed in the NPRM. As such,
the commenter supports the proposed amendments since there was no
economic impact on its business.
CBP Response: CBP appreciates the commenter's input and its review
of the potential impact that the proposed amendments would have had on
its business. Since CBP is modifying the age requirement from 21 years
to 18 years based upon the input of another commenter, CBP believes
there is even less of a restriction on those who would likely enroll in
the commenter's preparatory course.
Comment: A commenter opposed the amendments in the NPRM based upon
the amount of time it takes to obtain a license after passing the
examination. The commenter would only support the proposed amendments
if CBP was required to issue a license within six months of passing the
examination.
CBP Response: CBP understands the commenter's concern regarding the
timely issuance of customs brokers' licenses after passing the
examination. However, CBP believes that requiring licenses to be issued
within a mandatory timeframe would not be operationally practical or in
furtherance of CBP's mission of facilitating legitimate trade. In this
regard, CBP initially notes that the broker's examination is intended
only to evaluate and verify an applicant's knowledge of relevant
customs laws and regulations. The background investigation described in
Sec. 111.14, which must be completed after an individual passes the
examination but before a license is issued, is intended to verify the
accuracy of the statements made in the application, the business
integrity of the applicant, and the moral character and reputation of
the applicant. CBP has a legitimate interest in closely scrutinizing
applicants who will be transacting customs business on behalf of
importers before granting a license. Considering the general scope of
the background investigation, the circumstances unique to each
applicant's background that may require more time to investigate, and
the number of Federal agencies that may ultimately assist in the
investigation (e.g., Federal Bureau of Investigation, U.S. Immigration
and Customs Enforcement, CBP), it is clear that imposing a regulatory
requirement to issue a license within an arbitrary time frame would not
be operationally practical and would hinder CBP's ability to verify
that licenses are issued to qualified individuals.
Comment: One commenter, a large clothing retailer, did not support
the amendment in the NPRM to preclude non-U.S. citizens from taking the
examination. In support of its position, the commenter states that the
private sector does not have an equivalent to the examination and notes
that employers may hire and promote individuals based solely upon their
ability to pass the examination. In addition, the commenter states that
preventing non-U.S. citizens from taking the examination would be
discriminatory since it would prevent legal resident aliens from
advancing their careers in the sense that the examination is the only
measurement of an individual's competence in the trade compliance
field.
CBP Response: CBP initially notes that the customs broker's license
examination is not designed to be used as a tool by private sector
employers to gauge whether job applicants or current employees possess
the requisite knowledge to be employed or promoted in the trade
compliance field. Rather, the examination is administered so that CBP
can evaluate and verify an applicant's knowledge of relevant customs
laws and regulations for purposes of granting an individual customs
broker's license. In addition, CBP disagrees that the examination is
the only measurement of an individual's competence in the trade
compliance field because employers have the option to utilize
privately-developed benchmarks or other academic tools to evaluate an
individual's aptitude. Moreover, CBP disagrees that preventing non-U.S.
citizens from taking the examination would be discriminatory because
the amendment set forth in the NPRM and adopted in this document will
merely align the requirement for taking the examination with the
existing statutory requirement of citizenship for obtaining a license.
See 19 U.S.C. 1641(b)(2).
Conclusion
After analysis of the comments and further review of matter, CBP
has decided to adopt as final, with the modification discussed above in
the comment analysis, the NPRM published in the Federal Register (73 FR
30328) on May 27, 2008. In addition, minor editorial changes have been
made to the regulatory text for clarity.
Regulatory Flexibility Act
Pursuant to the provisions of the Regulatory Flexibility Act (5
U.S.C. 601 et seq.), it is certified that the amendments in this
document do not have a significant economic impact on a substantial
number of small entities because the final rule more closely aligns 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 as to citizenship and employment. Accordingly,
the amendments set forth in this document are not subject to the
regulatory analysis or other requirements of 5 U.S.C. 603 and 604.
Executive Order 12866
This final rule does not meet the criteria to be considered an
economically ``significant regulatory action'' under Executive Order
12866 because it will not result in the expenditure of over $100
million in any one year. The Office of Management and Budget (OMB) has
not reviewed this rule under that Order.
[[Page 52458]]
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 Subject in 19 CFR Part 111
Administrative practice and procedure, Brokers, Customs duties and
inspection, Imports, Licensing, Reporting and recordkeeping
requirements.
Amendments to the CBP Regulations
0
For the reasons set forth in the preamble, part 111 of title 19 of the
Code of Federal Regulations (19 CFR part 111) is amended as set forth
below.
PART 111--CUSTOMS BROKERS
0
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.
* * * * *
0
2. In Sec. 111.13:
0
a. Paragraph (a) is amended by removing the words ``Customs
Headquarters'' and adding in its place, the words ``Customs and Border
Protection (CBP) Headquarters'';
0
b. Paragraph (b) is amended by revising the heading and adding a new
first sentence;
0
c. Paragraph (c) is amended by removing the word ``Customs'' each place
it appears and adding in its place, the term ``CBP''; and
0
d. Paragraph (e) is amended by removing the word ``Customs'' in the
first sentence and adding in its place, the term ``CBP''.
The addition and revision to paragraph (b) read as follows:
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 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. * * *
* * * * *
Dated: August 18, 2010.
Alan Bersin,
Commissioner, U.S. Customs and Border Protection.
[FR Doc. 2010-21254 Filed 8-25-10; 8:45 am]
BILLING CODE 9111-14-P
