Customs Committee Agenda for 4/5/07 Meeting - ncbfaa

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Section 111.23, C.R. 1
Pursuant to section 19 C.F.R. §111.23(a), licensed customs brokers are required to
maintain records “within the broker district that covers the port to which they relate.” 2 The
regulations (19 C.F.R. §119(b)(6)) also provide that, in connection with an application for a
“Permit,” the broker shall provide CBP with “The place where the applicant's brokerage records
will be retained and the name of the applicant's designated recordkeeping contact.”
Because many brokers maintain more than one office within a “broker district” and/or have
more than one permit, the place or retention is often not the permitted location for which the
application is filed. Further, the licensee may elect to have the entry/entry summary and the
duty payment done from other locations. 3 As a result, the broker would prefer to consolidate the
non-electronic records pertaining to its “customs
1 Section 111.23, C.R., provides as follows:
Retention of records.
(a) Place and period of retention-
(1) Place. Records must be retained by a broker in accordance with the provisions of this part and part 163 of
this chapter within the broker district that covers the Customs port to which they relate unless the broker
chooses to consolidate records at one or more other locations, and provides advance notice of that
consolidation to Customs, in accordance with paragraph (b) of this section. * * *
(b) Notification of consolidated records-
(1) Applicability. Subject to the requirements of paragraph (b)(2) of this section and except when a
restriction applies under § 1 Under 19 C.F.R. §111.21, they include both its “records of account” and those
relating to its “customs business.” 63.5(b) of this chapter, the option of maintaining records on a consolidated
system basis is available to brokers who have been granted permits to do business in more than one district.
(2) Form and content of notice. If consolidated storage is desired by the broker, he must submit a written
notice addressed to the Director, Regulatory Audit Division, U.S. Customs Service, 909 S.E. First Avenue,
Miami, Florida 33131. The written notice must include:
(i) Each address at which the broker intends to maintain the consolidated records. Each such location must
be within a district where the broker has been granted a permit;
be maintained, unless the Director, Regulatory Audit Division, in Miami is first notified. * * * *
2 Page 13 of 17
Under 19 C.F.R. §111.21, they include both its “records of account” and those relating to its “customs business.”
3 This is also necessary in view of the anticipated adoption of “monthly duty payment.”