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Resources for Customs Brokers

Curated News on Broker Liability

February 9, 2019: BIS and Census raised civil penalty amounts for export control and trade statistics violations.

December 20, 2018: Jana Brands v. C.H. Robinson & Ryan: US District Court holds that despite the ICCTA, Customs brokers can be sued under state law causes of action - such as breach of contract.

December 5, 2018: CBP: H290002: CHBs can’t pay unlicensed sales people on a commission basis.

November 21, 2018: CBP: LBG Guidance on Annual User Fees for Permits (due January 25, 2019).

November 15, 2018: Am. Shipper: FMC declines to intervene in S. California PierPass Program.

November 9, 2018: NY/NJ 19-00-NWK Pipeline: Validating POAs.

October 24, 2018: CBP: Response to the Senate Committee on Finance, re: CBP iniatives.

October 19, 2018: A Georgia state court decision holds that an IOR claims against a CHB are limited to contractual remedies limited by terms & conditions of the POA, thereby contravening an action for negligence. It’s unclear whether issues of fiduciary duty, or a breach of contract (including the warranty of good faith and fair dealing were ever at issue.

January 10, 2018: CBP Video: Unified Cargo Processing (UCP).

General News:

February 12, 2019: Census: Concordance tables updated: 2019 Schedule B and HTS tables. HTS codes not valid for AES.

Enforcement Against Brokers

The government maintains several legal mechanisms for enforcement against CHBs, including:

  • Brokerage Audits

  • License revocation proceedings

  • Broker penalties ($30,000 liability per occurrence)

  • Negligence/fraud claims under Trek Leather (19 U.S.C. 1592)

  • Criminal concerning false statements, and etc.

In addition, various types of liability may exist to private parties, such as importers and exporters, or other members of the supply chain.

If your company is the target of enforcement action, we strongly advise that you contact a member of the firm to discuss your matter.