Reminder - CHB Triennial Report and Fee Due by Feb 29
This is a reminder that U.S. Customs and Border Protection has posted a frequently asked questions and answers document to provide guidance to licensed Customs brokers on the submission of the Triennial Status Report and fee. The next triennial status report, in addition to the $100 fee, should be filed by February 29, 2012.
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(19 CFR 111.30(d)(1) requires licensed brokers to file a written status report with CBP on February 1 of each third year, accompanied by a fee prescribed in 19 CFR 111.96(d) (currently $100). A report received during the month of February will be considered filed timely. See ITT's Online Archives 11111810 for summary of CBP's revocation of 469 Customs broker licenses for failure to file the 2009 triennial status report and applicable fee.)
Triennial Status Report & Fee Must Be Submitted for Every License
A triennial status report and fee must be submitted to CBP for every license that has not been previously revoked, suspended or canceled, whether it may be a license for a corporation, limited liability, partnership, association or individual. A check or money order payable to CBP for $100 should accompany each status report that is tendered to Customs.
Some brokers who have had their licenses suspended may be required to submit a status report and fee depending upon the conditions of the Suspension Agreement enacted between CBP and the individually licensed broker. An individually licensed Customs broker who forms a corporation, limited liability, partnership or association that is subsequently licensed as a Customs broker will be required to submit two reports and fees along with each report that is filed; one for the individual license and one for the license for the organization.
Must Be Submitted to Port that Originally Delivered License to Broker
The report and fee must be submitted to the director of the port that originally delivered the license to the broker. A report and/or fee submitted to a port other than the delivered through port may be rejected, returned, misplaced or denied, which may result in the revocation of the license.
CBP emphasizes that no reports should be submitted directly to Customs headquarters.
CBP to Suspend Licenses if Reports & Fees not Filed During Feb 2012
A report that is filed during the month of February 2012 is considered timely filed. However, CBP offices will begin accepting status reports and the corresponding fee on January 2, 2012. All valid licenses for which no report has been submitted by the end of February 2012 will be suspended by operation of law on March 1, 2012.
Licenses to Be Revoked if not Submitted During 60-Day Suspension Period
If a broker's license is suspended for failing to file the status report and fee by February 2012, the port director will transmit a notice of the suspension to the broker during the month of March 2012. During the allotted 60-day suspension period, the broker may tender a status report and fees to the appropriate port director. If this occurs, the license will be reinstated.
If the broker then fails to submit the status report and corresponding fee to CBP by the end of the 60-day suspension period, the broker's license will be revoked. Such licenses are revoked by operation of law without prejudice to the filing of a new application for a license.
No Required Format for Report, but CBP Provides a Sample
CBP notes that there is no required format for this report; however, CBP has provided a sample status report from. (CBP states this sample is only a suggested format and its use is not mandatory.)
The elements of the report prescribed in 19 CFR 111.30(d) may be compiled on a sheet of paper and submitted to CBP along with the corresponding fee. CBP reminds that licensed Customs brokers must present an employee list, if applicable, along with each status report submitted to CBP. In addition, each individually licensed broker must state whether or not they still meet the applicable requirements of 19 CFR 111.11 and 111.19 and have not engaged in any conduct that could constitute grounds for suspension or revocation under 19 CFR 111.53.
CBP Defines "Actively Engaged in Customs Business" for Report Purposes
For purposes of completing the report, CBP considers individuals to be "actively engaged in customs business" when they are currently or have recently transacted customs business on behalf of others as a sole proprietor or when they are employed by a licensed Customs broker who is currently or has recently transacted customs business on behalf of others. Those who work for another broker and are not directly involved in any activities which fall under the scope of the definition of "customs business" may report that they are "not actively engaged in customs business."
Partnerships, corporations and associations must also report to Customs in a status report whether or not they are "actively engaged in customs business."
Brokers Should Record Their Name as It Appears on Brokers License
Brokers should record their name on the status report as it appears on their Customs broker license. Any broker who has undergone a legal name change and has not had their license reissued so that the name on the license agrees with the new legal name, must provide the port director with evidence of their right to use the new legal name and separately request that the license be reissued in the new name.
(See ITT's Online Archives 11120908 for prior reminder on this filing and payment deadline.)
FAQs on the 2012 Triennial Report are available here.