U.S. Customs and Border Protection (“CBP”) announced today that individually licensed customs brokers may begin completing continuing education courses on January 1, 2025 (89 FR 87387). Failure to comply risks suspension or revocation of not only individual licenses but also those company broker licenses secured by broker-officers. The announcement “starts the clock” for companies offering customs broker services to begin managing education obligations of their licensed brokers to avoid interruptions in servicing domestic importers.
Continuing Education Rulemaking – CBP began rulemaking four years ago for the continuing education requirements now shown at 19 CFR Part 111, Subpart F. The provisions of Subpart F establish continuing education as well as recordkeeping and reporting requirements. They also establish procedures for notice of non-compliance and the eventual suspension or revocation if those deficiencies are not timely corrected. CBP did so under the authority of 19 USC 1641. The Advanced Notice of Proposed Rulemaking published on October 28, 2020, followed by the Notice of Proposed Rulemaking on September 10, 2021, and the Final Rule on June 23, 2023.
Regulatory Compliance Obligations Today – Today’s Notice commences the education and reporting process for the 2024-2027 triennial period with a reduced education credit requirement of 20 credits rather than 36. The compliance deadline is February 1, 2027. Individually licensed brokers may begin completing qualified continuing broker education courses on January 1, 2025. The express purpose of continuing education found at 19 CFR 111.101 is to ensure that individual brokers “maintain sufficient knowledge of customs and related laws, regulations, and procedures, bookkeeping, accounting, and all other appropriate matters necessary to render valuable service to importers and drawback claimants.” Today’s Notice also announced five CBP-selected accreditors for the continuing education requirements following a public RFP process.
Consequences for Non-Compliance – CBP may suspend or revoke an individual’s customs broker license, which may impact company licenses held by those individuals, if continuing education requirements are not reported or fall short of the requirement. Brokers will receive notice of impending suspension and a 30-day period to correct deficiencies as described in 19 CFR 111.104. Failure to take corrective action within this window will result in suspension. If the deficiency is not resolved within 120 days following suspension then broker licenses will be revoked. In all events, the required corrective action is to certify completion of the required continuing education credits.
Benesch’s Transportation & Logistics Practice Group has a long history of helping clients to launch and grow customs broker operations. Our large team represents clients in license application and maintenance, operational paperwork and contracting, day-to-day regulatory compliance, mergers and acquisitions, as well as claims and enforcement defense.
Jonathan Todd is Vice Chair of the Transportation & Logistics Practice Group at Benesch Law. He was formerly in-house counsel with a customs broker and international freight forwarder. He holds a customs broker license in addition to his law license. Jonathan may be reached any time by telephone at 1-216-363-4658 or by e-mail at jtodd@beneschlaw.com.
Ashley Rice is a Law Clerk in the Transportation & Logistics Practice Group. She may be reached by telephone at 1-216-363-4528 or by e-mail at arice@beneschlaw.com.