Section 1641 — codified at 19 U.S.C. § 1641 — is the statute governing the licensing, conduct, and discipline of customs brokers in the United States. It is implemented through 19 CFR Part 111 (broker regulations) and authorizes CBP to take a wide range of enforcement actions specifically against brokers.
Licensing requirements (§ 1641(b)):
- Brokers must be U.S. citizens of at least 21 years of age and pass the Customs Broker License Examination
- Brokerage corporations and partnerships must obtain a separate corporate or partnership license
- Each district office that transacts business with CBP must hold a separate National Permit or have at least one licensed broker employed full-time
Grounds for discipline (§ 1641(d)):
- Filing materially false or misleading information with CBP
- Failing to exercise responsible supervision and control over employees
- Aiding or abetting unlicensed persons to transact customs business
- Being convicted of a felony or any misdemeanor involving fraud
- Failing to maintain required records
- Charging excessive or unreasonable fees
Penalties available to CBP:
- Civil monetary penalty up to $30,000 per violation (originally $10,000 and increased multiple times under inflation adjustments under the Federal Civil Penalties Inflation Adjustment Act)
- Suspension of license for up to 12 months
- Revocation of license
- Letter of warning (informal)
Procedural framework mirrors Section 1592: a Notice of Charges, an opportunity to respond, and ultimately an Administrative Law Judge hearing under 19 CFR Part 111, Subpart D. Brokers may appeal adverse decisions to the Court of International Trade.
Responsible supervision and control is the most-cited grounds for disciplinary action. Brokers are required to ensure entries filed under their license are accurate — even when prepared by clerks or third parties. Failure to maintain documented procedures, training, and review processes is a chronic source of Section 1641 exposure.
For importers, hiring a licensed broker does not transfer reasonable care responsibility — the broker is subject to § 1641, while the importer remains subject to § 1592 for the same entry.