Mr. Jones, a buying agent with power of attorney for importer American Widgets, employs licensed customs broker Ms. Smith for the transaction of customs business and Speedy Freight Forwarder for the transportation of merchandise on behalf of American Widgets. Mr. Jones does not have a customs broker license. American Widgets' imported merchandise was not purchased on a delivered duty-paid basis. Ms. Smith executed a power of attorney directly with American Widgets. Of the following choices, what additional action must Ms. Smith take for billing purposes?
How to get there
19 CFR 111.36(a): Employment by unlicensed person other than importerWhen a broker is employed for the transaction of customs business by an unlicensed person who is not the actual importer, the broker must transmit to the actual importer either a copy of his bill for services rendered or a copy of the entry, unless the merchandise was purchased on a delivered duty-paid basis or unless the importer has in writing waived transmittal …
Ms. Smith was hired by Mr. Jones, an unlicensed buying agent, not by the importer. The goods weren't bought DDP, so she must send American Widgets her bill or a copy of the entry unless it waives that. The answer is A.
Why the other choices are wrong
B) Pay Mr. Jones a finder's fee: § 111.36(b) bars arrangements where fees for services to others benefit an unlicensed person. Only freight forwarders may be compensated for referrals, under the § 111.36(c) conditions, and Mr. Jones isn't a forwarder.
C) A POA with Speedy Freight Forwarder: the broker's POA must be directly with the importer of record, "not via a freight forwarder" (§ 111.36(c)(3)). She already has one with American Widgets.
D) Send brokerage charges to the forwarder: when charges go to anyone, they go to the importer, not to the forwarder (§ 111.36(c)(2)). Here the forwarder isn't involved in billing at all.
TipTransparency rule: whenever someone other than the importer stands between the broker and the importer (an unlicensed agent or a forwarder), the importer must still see the broker's charges or entry, unless it's DDP or waived in writing.
Source: 19 CFR 111.36(a)–(c) (eCFR).