Fred Jones is a licensed broker. His office is located next to a freight forwarder. Fred proposes to enter into an agreement with the freight forwarder whereby the forwarder will refer business Fred’s way in exchange for receiving compensation from Fred for the referrals. This agreement will be legal provided certain conditions are satisfied. Which ONE of the following is NOT a required condition?
A) No part of the compensation agreement, nor any action taken pursuant to the agreement, forbids or prevents direct communication between the importer or other party in interest and the broker.
B) The broker and forwarder obtain the written consent of the importer or other party in interest with respect to entry into the agreement.
C) In making the agreement and in all actions taken pursuant to the agreement, the broker remains subject to all other requirements of the broker regulations.
D) The importer or other party in interest is notified in advance by the forwarder or broker of the name of the broker selected by the forwarder for the handling of his Customs transactions.
E) The broker transmits directly to the importer or other party in interest either a true copy of his brokerage charges if the fees and charges are to be collected by or through the forwarder, unless this requirement is waived in writing, or a statement of his brokerage charges and an itemized list of any charges to be collected for the account of the freight forwarder if the fees and charges are to be collected by or through the broker.
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The Answer is: B
Citation: 19 CFR 111.36(c)
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