CustomsBrokerLicenseExam

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April 2025, question 15

Broker Compliance · Broker licensing and duties

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?

  1. 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.
  2. 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.
  3. 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.
  4. 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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CBP's answer: B. 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.

Section 111.36(c) lets a broker compensate a freight forwarder for referrals if the importer is notified in advance, by the forwarder or broker, of the name of the broker selected. That is B. A is wrong because the POA must be executed with the importer or authorized party, C is not a permitted term, and D overstates 111.36(b) because paragraph (c) is an exception for forwarder referral fees.

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 19 CFR 111.36(c)(1)
A broker may compensate a freight forwarder for referring brokerage business 19 CFR 111.36(c)

Search for: relations with a freight forwarder

CBP's key cites: 19 CFR 111.36

Question and key from CBP's April 2025 exam and answer key. The walk-through is ours; quotes are from the pinned editions in the reference viewer (HTSUS 2026 Basic, 19 CFR 2025 edition).