2025 April No.15 – Broker Compliance


15. A freight forwarder is referring an import client to a customs broker with an expectation of receiving a referral fee. Which ONE of the following statements is legally TRUE with respect to their relationship? (2025 April No.15 – Broker Compliance)

A) The customs broker may execute a customs power of attorney with the importer via the freight forwarder, via another third party, or with the importer directly to transact customs business for that importer.

B) The importer must be notified in advance by the freight forwarder or broker of the name of the broker with whom the freight forwarder is doing business for the handling of the importer’s Customs transactions.

C) The agreement between the freight forwarder and the customs broker may stipulate that the importer may only communicate with the broker through the freight forwarder.

D) The broker and freight forwarder may not enter into an agreement such that the freight forwarder, as an unlicensed person, benefits from the broker’s services rendered to and fees earned from the importer.

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The Answer is: B

Citation: 19 CFR 111.36
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