CUSTOMS-NOTES

The materials contained in this document have been prepared George R. Tuttle Law Offices for informational purposes only. The information contained is general in nature, and may not apply to particular factual or legal circumstances. In any event, the materials do not constitute legal advice or opinions and should not be relied upon as such.

March 29, 2001

Customs Revises Regulations for

National Broker Permits

 

 

On July 6, 2001, Customs issued a general notice requiring that all brokers, regardless of the number and location of their district permits, must have a national permit to become or remain a RLF participant.  Non-Brokers who are otherwise eligible to participate in RLF, are not required to hold a national broker permit.

 

In addition, the general notice announced that the provisions of 19 CFR Part 111 (the Customs broker regulations) now apply to the RLF prototype. 

 

Background

 

The RLF currently a two-stage RLF application process through which an RLF applicant must first receive Customs Headquarters approval and then approval from each of the requested RLF-approved ports of arrival and any designated exam site location. 

 

In addition, the RLF entries can only be filed at the 129 ports which have been RLF-trained.

 

July 6th Deadline

 

On or after July 6, 2001 Customs brokers who submit applications to participate in RLF must hold a national permit. Without a national permit the application will be considered “pending” until a national permit is obtained. Similarly, applications submitted, but not approved, before July 6, 2001 will be processed, but not approved until a national permit is obtained.

 

November 6th Deadline

 

Brokers already approved for RLF may continue to participate in the prototype, but must submit a national permit number to Customs on or before November 6, 2001 to retain RLF eligibility.

 

 

Procedures for Obtaining a National Permit Outlined in 19 CFR 111.19(f)

 

According to Customs sources and 19 CFR 111.19(f), an application for a national permit must be in the form of a letter addressed to:

 

U.S. Customs Service

Office of Field Operations

Broker Management Branch

Room 5.2.B

1300 Pennsylvania Avenue, N.W.

Washington, DC  20229

 

The application must include:

1.      the applicant’s broker license number and date of issuance;

2.      the address and telephone number of the office of record for purposes of administration of the provisions of 19 CFR Part 111;

3.      the name, broker license number, office address, and telephone number of the individual broker who will exercise responsible supervision and control over the activities of the applicant;

4.      a receipt or other evidence showing that the fees specified in 19 CFR 111.96(b) and (c) ($100 permit application fee and $125 annual user fee) have been paid at the service port through which the applicant’s broker license was delivered.

 

We also suggest including a copy of a valid district permit as this is such permit is also required for the National Permit.  We have been told that Customs recent estimates that at least 2 weeks will be required to process the application.