CustomsBrokerLicenseExam

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October 2026, question 12

Broker Compliance · Broker licensing and duties

Which ONE of the following business relationships is prohibited for customs brokers?

  1. Compensating an unlicensed freight forwarder for the client’s freight charges.
  2. Charging higher than market rate for services rendered to importers.
  3. Compensating an unlicensed importer for referring brokerage business.
  4. Charging a duty outlay fee for processing duty payments for importers.
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CBP's answer: C. C: Compensating an unlicensed importer for referring brokerage business.

Section 111.36(b) bars an agreement with an unlicensed person so that fees from services to others benefit the unlicensed person, and 111.36(c) makes an exception only for compensating a freight forwarder for referring business. Paying an unlicensed importer for referrals is not within that exception, so C is prohibited. Paying a forwarder's freight charges, charging a high rate and charging a duty outlay fee are not the kind of fee sharing the section bars.

a broker must not enter into any agreement with an unlicensed person to transact customs business for others in such manner that the fees or other benefits resulting from the services rendered for others inure to the benefit of the unlicensed person 19 CFR 111.36(b)
A broker may compensate a freight forwarder for referring brokerage business, subject to the following conditions: 19 CFR 111.36(c)

Search for: A broker may compensate a freight forwarder for referring brokerage business

CBP's key cites: 19 CFR 111.36(b)

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).