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Federal Register / Vol. 86, No. 173 / Friday, September 10, 2021 / Proposed Rules
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and affected businesses will depend on if the broker currently meets the proposed training requirements. Based on public comments in response to the ANPRM and discussions between CBP
and various broker organizations, CBP
estimates most large businesses employing brokers already provide, and often mandate, internal training and continuing education. CBP estimates that these 60 percent of individual brokers already in compliance would not face new costs aside from recordkeeping and reporting. CBP
estimates the remaining 40 percent of brokers, mostly at smaller businesses, would need to come into compliance with the proposed rule. Using the primary estimate under which one third of brokers selects each cost tier, and assuming a discount rate of 3 percent, the annualized cost of the rule to all affected brokers is $5,903,336. The rule would affect 5,529 customs brokers in the first year, for an average annualized cost of $1,068 per broker. The average annual receipts for small businesses in the Freight Transportation Arrangement Industry, according to the Census data in Table 28, is $543,589. The number of brokers employed by each business would vary among the small businesses in question, but assuming an average of four brokers per company,90 the cost of continuing education for each firm would be approximately $4,272
annually, or about 0.79 percent of annual receipts. CBP generally considers effects of less than 1 percent of annual receipts not to be a significant impact. Accordingly, CBP certifies that this proposed rule does not have a significant economic impact on a substantial number of small entities.
C. Paperwork Reduction Act In accordance with the Paperwork Reduction Act of 1995 Pub. L. 10413, 44 U.S.C. 3507 an agency may not conduct, and a person is not required to respond to, a collection of information unless the collection of information displays a valid control number assigned by OMB. The collections of information contained in these regulations are provided for by OMB
control number 16510034 CBP
Regulations Pertaining to Customs Brokers.
The proposed rule would require individual brokers to maintain records of completed continuing education including, among others, the date, title,
provider, location, and credit hours and certify the completion of the required number of continuing education credits on the triennial report. Based on these changes, CBP estimates a small increase in the burden hours for information collection related to customs brokers regulations. CBP would submit to OMB
for review the following adjustments to the previously approved Information Collection under OMB control number 16510034 to account for this proposed rules changes. The addition of the selfattestation and submission of records would add about 3045 minutes 0.5
0.75 hours per respondent.
CBP Regulations Pertaining Customs Brokers Estimated Number of Respondents:
13,822.
Estimated Number of Responses per Respondent: 1.
Estimated Number of Total Annual Responses: 0.333.
Estimated Time per Response: 31.5
minutes 0.525 hours.
Estimated Total Annual Burden Hours: 2,418.85 hours.
D. Signing Authority This document is being issued in accordance with 19 CFR 0.1b1, which provides that the Secretary of the Treasury delegated to the Secretary of DHS authority to prescribe and approve regulations relating to customs revenue functions on behalf of the Secretary of the Treasury for when the subject matter is not listed as provided by Treasury Department Order No. 10016.
Accordingly, this proposed rule may be signed by the Secretary of DHS or his or her delegate.
List of Subjects in 19 CFR Part 111
Administrative practice and procedure, Brokers, Penalties, Reporting and recordkeeping requirements.
Amendments to the Regulations For the reasons set forth in the preamble, CBP proposes to amend 19
CFR part 111 as set forth below:
PART 111CUSTOMS BROKERS
1. The general authority citation for part 111 continues to read as follows:

Authority: 19 U.S.C. 66, 1202 General Note 3i, Harmonized Tariff Schedule of the United States, 1624, 1641.

2. Revise the second sentence of 111.0 to read as follows:

90 Many brokerages are sole proprietorships and many employ individual brokers who supervise other employees. The average number of employees per firm is seven. CBP assumes the average firm employs 4 individual brokers and 3 other employees, such as human resource managers.

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111.0

Scope.

This part also prescribes the duties and responsibilities of brokers,
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the grounds and procedures for disciplining brokers, including the assessment of monetary penalties, the revocation or suspension of licenses and permits, and the obligation for individual customs broker license holders to satisfy a continuing education requirement.
3. In 111.1, add the definitions Continuing broker education requirement, Continuing education credit, Qualifying continuing broker education, and Triennial period in alphabetical order to read as follows:
111.1

Definitions.

Continuing broker education requirement. Continuing broker education requirement means an individual customs broker license holders obligation to complete a certain number of continuing education credits of qualifying continuing broker education, as set forth in subpart F of this part, in order to 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.
Continuing education credit.
Continuing education credit means the unit of measurement used for meeting the continuing broker education requirement. The smallest recognized unit is one continuing education credit, which requires 60
minutes of continuous participation in a qualifying continuing broker education program, as defined in 111.103a. For qualifying continuing broker education lasting more than 60 minutes, one continuing education credit may be claimed for the first 60 minutes of continuous participation, and half of one continuing education credit may be claimed for every full 30 minutes of continuous participation thereafter. For example, for qualifying continuing broker education lasting more than 60
minutes but less than 90 minutes, only one continuing education credit may be claimed. In contrast, for qualifying continuing broker education lasting 90
minutes, 1.5 continuing broker education credits may be claimed.

Qualifying continuing broker education. Qualifying continuing broker education means any training or educational activity that is eligible or, if required, has been approved for continuing education credit, in accordance with 111.103.

Triennial period. Triennial period means a period of three years
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