CustomsBrokerLicenseExam

Home / Past exams / October 2026 / Question 11

October 2026, question 11

Broker Compliance · Broker licensing and duties

Ace Brokerage, Inc. (Ace Brokerage) is a wholly-owned subsidiary of Ace Logistics, Inc. (Ace Logistics) and Ace Brokerage holds a customs broker license and national permit. The power of attorney agreements between Ace Brokerage and its clients contain no language making the agreement binding on Ace Brokerage’s heirs, assigns, or successors. In 2026, Ace Brokerage will merge into Ace Logistics, and Ace Brokerage will cease to exist. Prior to the merger, Ace Logistics is not a licensed customs broker. Ace Logistics intends to conduct customs business on behalf of Ace Brokerage’s former clients following the merger. Based on this scenario, which ONE of the following statements is TRUE?

  1. Ace Logistics must obtain new powers of attorney before it can transact Customs business on behalf of Ace Brokerage’s former clients.
  2. Ace Logistics must designate a licensed officer within 120 days of the merger in order to maintain use of Ace Brokerage’s customs broker license.
  3. Ace Brokerage’s national permit is transferable to Ace Logistics.
  4. Ace Logistics may transact customs business under Ace Brokerage’s license once the merger is complete.
Show the answer and walk-through

CBP's answer: A. A: Ace Logistics must obtain new powers of attorney before it can transact Customs business on behalf of Ace Brokerage’s former clients.

Before transacting customs business in the name of a principal, a broker must obtain a valid power of attorney (141.46). The existing powers of attorney name Ace Brokerage and have no language binding successors or assigns, and Ace Logistics is not a licensed broker, so it needs new powers of attorney from the clients, and A is right. Ace Logistics cannot simply use Ace Brokerage's license, since a broker must not allow its license or permit to be used by an unlicensed person (111.37), which rules out C and D, and the 120 day designation in B is not in the pinned rules.

Before transacting Customs business in the name of his principal, a customhouse broker is required to obtain a valid power of attorney to do so. 19 CFR 141.46
A broker must not allow his license, permit or name to be used by or for any unlicensed person 19 CFR 111.37

Search for: required to obtain a valid power of attorney

CBP's key cites: 19 CFR 141.32; 19 CFR 141.37; 19 CFR 141.46

Question and key from CBP's October 2026 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).