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Federal Register / Vol. 86, No. 173 / Friday, September 10, 2021 / Proposed Rules
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to verify an individual brokers compliance with the requirements set forth in paragraphs a and b of this proposed sectionthat is, the completion of the required number of continuing education credits during the triennial period.
5. Disciplinary Actions Proposed 111.104 authorizes CBP to take disciplinary actions, if an individual broker, who is required to complete qualifying continuing broker education, submits a triennial report but fails to report and certify his or her compliance with the continuing broker education requirement on the triennial report. These actions take a path of progressive discipline by imposing increasingly serious measures following a reasonable time and opportunity to take corrective actions. This approach is rooted in CBPs goal to ensure that all individual brokers participate in continuing education activities, but not to take disciplinary actions against brokers for mere clerical errors, such as the failure to report compliance with the continuing broker education requirement due to a mere oversight.
Proposed 111.104a provides that, if an individual broker, who is required to complete qualifying continuing broker education, submits a triennial report but fails to report and certify his or her compliance with the continuing broker education requirement on the triennial report, CBP will notify the individual broker of his or her noncompliance.
Pursuant to proposed 111.104a, CBP
would send the notification to the address reflected in CBPs records or transmit it electronically pursuant to any electronic means authorized by CBP
for that purpose. This language would authorize CBP to send such notification to the mailing address that the individual broker listed on the status report or via email if the individual brokers email address is on file with CBP.
Proposed 111.104b requires the noncompliant individual broker to take appropriate corrective actions within 30
calendar days upon the issuance of such notification. During this period, the individual broker would be provided with an opportunity to take corrective actions without being subjected to any disciplinary consequences for his or her noncompliance. As reflected in paragraphs b1 and 2 of proposed 111.104, the nature of the required corrective actions is determined by the reason for the individual brokers failure to report and certify compliance on the triennial report. If the individual broker completed the required number of continuing education credits, but failed
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to report and certify his or her compliance with the continuing broker education requirement on the triennial report, the broker would merely be required to submit a corrected triennial report that reflects the brokers compliance. If the individual broker did not report and certify compliance on the triennial report because the broker did not complete the required number of continuing education credits, the broker would be required to complete the required number of continuing education credits and then submit a corrected triennial report.
Proposed 111.104c provides that, if the noncompliant individual broker fails to take the required corrective actions within 30 calendar days upon the issuance of the aforementioned notification, CBP will take actions to suspend the brokers individual license.
Upon the suspension of the individual brokers license and the issuance of the order of suspension, the individual broker would be provided with an additional opportunity to take the required corrective actions before CBP
would take more serious disciplinary measures. Specifically, in paragraph d, proposed 111.104 provides that, if following the suspension of the license the noncompliant individual fails to take the required corrective actions within 120 calendar days upon the issuance of the order of suspension, CBP
will take actions to revoke the individual brokers license without prejudice to the filing of an application for a new license. As proposed 111.104d provides that the individual brokers license would be revoked without prejudice to the filing of an application for a new license, the individual broker would not be prevented from seeking a new individual customs broker license at a later point in time.
Existing 111.53c provides the relevant basis for the suspension and/or revocation of a customs brokers license when an individual broker fails to submit a status report reporting and certifying his or her compliance with the continuing broker education requirement. Section 111.53c, which authorizes CBP to initiate proceedings for the suspension, for a specific period of time, or revocation of the license or permit of any broker for any violation of a statutory provision enforced by CBP or any rule or regulation issued by CBP, implements 19 U.S.C. 1641d1C.
Consequently, pursuant to 19 U.S.C.
1641d2B, as implemented by subpart D of part 111 19 CFR part 111, subpart D, CBP would be required to comply with certain formal procedural requirements in suspending or revoking
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the individual brokers license, which would conclude with the issuance of an order of suspension or revocation. This is reflected in paragraphs c and d of proposed 111.104 through the crossreferences to subpart D of part 111. As such, CBP is not adopting either of the proposals considered in the ANPRM
that is, to suspend or revoke an individual brokers license by operation of law.
The provisions of proposed 111.104
would only apply to cases in which an individual broker, who is required to complete qualifying continuing broker education, submits a triennial report but fails to report and certify his or her compliance with the continuing broker education requirement on the triennial report. CBP believes that any other type of misconduct could be sufficiently addressed through existing regulatory provisions. For example, if an individual broker were to fail to timely submit a triennial report, or to submit no triennial report at all, CBP would continue to seek the suspension and/or revocation of the individual brokers license in accordance with the provisions of current 111.30d4.
Additionally, current 111.53a, which implements 19 U.S.C. 1641d1A, authorizes CBP to initiate proceedings for the suspension, for a specific period of time, or revocation of the license or permit of a customs broker, if the broker has, among others, made in any report filed with CBP any statement which was, at the time and in light of the circumstances under which it was made, false or misleading with respect to any material fact, or has omitted to state in any report any material fact which was required.
In the context of the proposed framework, CBP foresees that violations of 111.53a could arise from the following misconduct. First, a violation of 111.53a would occur, if an individual broker were to falsely report and certify compliance with the continuing broker education requirement on the triennial report when, at the time of the submission of the triennial report, the individual broker had not completed the required number of continuing education credits.
This would include cases in which an individual broker, who has not yet completed the required number of continuing education credits, submits a triennial report on which the broker reports and certifies compliance, but later completes the required number of continuing education credits. Second, a violation of 111.53a would occur, if, in accordance with proposed 111.102d2, CBP were to request additional documentation from an
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