(15) Improper retention of a fee for which no services have been rendered. (16) Obtaining or attempting to obtain money or other thing of value from a claimant by false representations, knowing the same to be false. (17) Obtaining or attempting to obtain money or other thing of value from a claimant by duress or undue influence. (18) Concealing or attempting to conceal assets in order to evade the payment of Federal taxes. (19) Representing to a client or prospective client that the attorney or agent can obtain extraordinary favors from the Treasury Department or an officer or employee thereof or has access to unusual sources of information within the Department. (20) Soliciting or procuring the giving of false testimony in any proceeding before the Committee on Enrollment and Disbarment or in any other proceeding before the Treasury Department.** 10.11 Striking names from roll. On request of an attorney or agent, the Committee may strike his name from the roll, but before granting the request_the_Committee shall make inquiries to ascertain whether the request has been made in order to evade proceedings for suspension or disbarment, in which event the request shall be denied unless the Committee shall deem it to the best interest of all parties concerned to grant such request. The Committee may upon motion of the attorney for the Government or upon its own motion strike from the roll the name of any person who has failed to supply the information required by section 15 of Department Circular 230, revised October 1, 1934, provided that any attorney or agent whose name has been so stricken from the roll may have his name restored thereto by filing with the Committee such information and a statement showing that his failure to supply it within the time specified in such circular was not due to any fault on his part. Upon the receipt of such information and statement, the name of such attorney or agent shall be restored to the roll unless it shall appear that he is ineligible for enrollment, in which event he shall be advised of the fact and given 60 days within which to present to the Committee satisfactory evidence that he is eligible for enrollment.** 10.12 Application and effective date of regulations. The regulations in this part supersede the regulations promulgated by Treasury Department Circular No. 230 of October 1, 1934, relating to the recognition of attorneys, agents, and others, as heretofore amended and supplemented. This part shall apply to attorneys, agents, and licensed customhouse brokers representing claimants before any office of the Treasury Department, with such exceptions as to customhouse brokers as are set forth in § 10.5, and shall be effective from and after October 1, 1936. The regulations in this part shall also apply to all unsettled matters then pending in this Department or which may hereafter be presented or referred to the Department or offices thereof for adjudication, and shall be applicable to all those now enrolled to practice before the Treasury Department as attorney or agent, and all proceedings before the Committee after October 1, Page 22 *For statutory and source citations, see note to § 10.1. 1936, shall in all procedural matters be governed by the provisions of the regulations in this part and such supplementary regulations as may from time to time be adopted by the Committee in pursuance of the power granted it in § 10.7: Provided, That violations of the regulations committed prior to October 1, 1936, shall in all substantive matters be dealt with according to the provisions of the regulations in force at the time when the act or acts alleged to constitute such violations occurred.** 10.13 Withdrawal or amendment of regulations. The Secretary of the Treasury reserves the power to withdraw or amend or supplement at any time or from time to time all or any of the regulations in this part, with or without previous notice, and may make such special orders as he may deem proper in any case.** (d) Person. (e) Books and papers. 11.3 Application for license and investigation of application. (a) Application to Committee. (b) Investigation of applicants. 11.4 Issuance or denial of license. (a) Issuance if applicant quali- (b) Licenses to be issued in name (c) Recommendation for rejec- 11.8 License, when not required. (a) Dealing for one's own account. (b) Transportation in bond by common carrier. (c) Agents employed by one or more vessels. 11.9 Other duties and obligations of licensed customhouse brokers. 11.10 Revocation or licenses. suspension (a) Provisions of Tariff Act. (b) Procedure. 11.11 Cancelation of licenses. of 11.12 Licenses issued under prior acts of Congress. 11.13 Appeal from the Secretary's decision. 11.14 Records of the Committee. 11.15 Effective date of regulations. CROSS REFERENCE Bureau of Customs, Department of the Treasury: See Customs Duties, 19 CFR Chapter I. Section 11.1 Licenses for brokers required; qualifications; regulations authorized-(a) Licenses. The Tariff Act of 1930, section 641 (a), as amended (46 Stat. 759, 49 Stat. 864; 19 U.S.C. 1641 and Sup.), provides: * Except as provided in subdivision (c) of this section, no person shall transact business as a customhouse broker without a license granted in accord **For statutory and source citations, see note to § 10.1. Page 23 ance with the provisions of this subdivision, but nothing in this section shall be construed to authorize the requiring of a license in the case of any person transacting at a customhouse business pertaining to his own importations. (b) Licensing required. No representative of the Treasury Department shall recognize or deal with any person transacting the business of a customhouse broker, or any employee, officer, or agent thereof, unless such person is licensed as a customhouse broker in accordance with the provisions of this part. (c) Provisions of the Tariff Act. The Tariff Act of 1930, section 641 (a) provides: The Secretary of the Treasury may prescribe rules and regulations governing the licensing as customhouse brokers of citizens of the United States of good moral character, and of corporations, associations, and partnerships, and may require as a condition to the granting of any license, the showing of such facts as he may deem advisable as to the qualifications of the applicant to render valuable service to importers and exporters. No such license shall be granted to any corporation, association, or partnership unless licenses as customhouse brokers have been issued to at least two of the officers of such corporation or association, or two of the members of such partnership, and such licenses are in force. (d) Additional authority. The Tariff Act of 1930, section 641 (d), as amended, provides: The Secretary of the Treasury shall prescribe such rules and regulations as he may deem necessary to protect importers and the revenue of the United States, and to carry out the provisions of this section. *§§ 11.1 to 11.15, inclusive, issued under the authority contained in sec. 641, 46 Stat. 759, as amended by secs. 3, 4, 5, 49 Stat. 864, 865; 19 U.S.C. 1641 and Sup. In 88 11.1 to 11.15, inclusive, the numbers to the right of the decimal point correspond with the respective section numbers in Department Circular 559, Secretary of the Treasury, Apr. 16, 1936, 1 F.R. 212. 11.2 Definitions. When used in the regulations in this part: (a) Customhouse broker. The term "customhouse broker" includes any person who, acting on behalf of others, transacts customs business not limited to a kind described in § 11.7 of this part. (b) Treasury Department or any representative thereof. The term "Treasury Department or any representative thereof" includes any division, branch, bureau, office, or unit of the Treasury Department, whether in Washington or in the field, and any officer or employee of any such division, branch, bureau, office, or unit. (c) Committee. The word "Committee" means the Committee on Enrollment and Disbarment of the Treasury Department. (d) Person. The word "person" includes corporations, associations, and partnerships. (e) Books and papers. The term "books and papers" includes all books, accounts, records, papers, documents, and correspondence of a customhouse broker relating to his customs business.** CROSS REFERENCE: For Committee on Enrollment and Disbarment, see § 10.1. 11.3 Application for license and investigation of application— (a) Application to Committee. A person desiring to engage in the business of a customhouse broker shall submit an application to the Committee, stating his qualifications for a license. The application shall be under oath and in such standard form as the Committee, with the approval of the Secretary, shall have prescribed. Page 24 *For statutory and source citations, see note to § 11.1. (b) Investigation of applicants. The Committee shall make an investigation in connection with each such application, and to this end may utilize any investigative facility of the Treasury Department. The investigation shall cover, but need not be limited to, (1) the correctness of the statements made in the application, (2) the business integrity of the applicant, and (3) when the applicant is an individual (including an officer of a corporation or association or a member of a partnership), the character and reputation of the applicant and his experience in customs matters. (c) Posting applications. As soon as possible after the application has been filed, the name and address of each applicant shall be posted conspicuously in the customhouse at the port where the applicant proposes to maintain his principal office. In the case of a corporation, association, or partnership, the name of the licensed officers or members shall be stated. (d) Grounds for rejection. The causes sufficient to justify rejection of an application for a license shall include, but shall not be limited to, (1) any conduct which would be ground for the suspension or revocation of the license of a licensed customhouse broker under the provisions of § 11.10; (2) any conduct which would be deemed grossly unfair in commercial transactions by accepted standards; (3) a bad reputation imputing to an applicant conduct of any of the foregoing types or of a criminal, dishonest, or unethical kind; and (4) the minority of the applicant. In the case of a corporation, association, or partnership, the application will be rejected by the Committee unless it appears that the officers or members who are licensed customhouse brokers are to exercise responsible supervision and control of the transaction of the customs business of such corporation, association, or partnership. An individual who is unable for any reason to take the oath of allegiance and to support the Constitution of the United States shall not be licensed. An alien undergoing naturalization is ineligible to receive a license until he has received his final naturalization certificate. An officer or employee of the United States is ineligible to receive a license. (e) Examination of applicants. Upon the conclusion of the investigation, the Committee shall notify the applicant to appear before a subcommittee of examiners at a specified time and place in the customs district in which the applicant proposes to do business, unless facts already established by the investigation satisfy the Committee that the application should be rejected. Such subcommittee of examiners shall consist of not less than three nor more than five members designated as such by the Committee. (f) Purpose of examinations. The Committee shall from time to time prescribe lists of suggestions for the guidance of subcommittees of examiners in conducting such examinations. The examinations shall have for their purpose a determination of the applicant's knowledge of customs law and procedure and his fitness to render valuable service to importers and exporters. The examination may at the option of the subcommittee be oral or written, but if oral shall be stenographically reported and transcribed, and in either case shall be forthwith transmitted to the Committee with the report and recommendation of the subcommittee of examiners. Page 25 (g) Additional examination. The Committee shall endeavor to ascertain all the facts deemed necessary by it to pass upon any application without expense or undue inconvenience to the applicant. In the event, however, that the Committee is not satisfied by the information received, it may require the applicant (or, in the case of a corporation, association, or partnership, one or more of its officers or members) to appear in person before the Committee or before one or more representatives of the Committee, for the purpose of undergoing additional written or oral examination into the applicant's qualifications for a license. (h) Operating under trade or fictitious name. If the applicant is an individual who proposes to operate under a trade or fictitious name, evidence of the applicant's authority so to conduct business must accompany his application. A licensed individual who proposes to operate under a trade or fictitious name shall submit evidence of his authority so to do, and receive the approval of the Committee before he uses such name.*† 11.4 Issuance or denial of license-(a) Issuance if applicant qualified. If the Committee finds that the applicant is qualified, the Committee will issue a license in such standard form as the Committee, with the approval of the Secretary of the Treasury, shall have prescribed. The license shall be forwarded to the appropriate collector of customs, who shall deliver it to the licensee after making a record thereof in a roster of licensed brokers which shall be maintained in the customhouse in such manner that it will be readily accessible to the proper customs officers and employees. (b) Licenses to be issued in name of individual. A license for an individual who is an officer of a corporation or association or a member of a partnership will be issued in the name of the individual licensee, and not in his capacity as officer or member of the organization with which he is connected, (c) Recommendation for rejection. If the Committee finds that the application should be rejected for any reason, it shall so report and recommend to the Secretary of the Treasury. Such report and recommendation shall be signed by all members of the Committee agreeing thereto. Any member of the Committee dissenting therefrom shall submit a statement of his reasons for such dissent. The Committee may grant a hearing on an application at the applicant's request. (d) Procedure on recommendation. If the Secretary of the Treasury, in the exercise of his discretion, approves such recommendation, notice of rejection of the application shall be given by the Committee to the applicant and to the collector of the district in which the applicant proposed to do business. If the Secretary does not approve such recommendation, he will return it to the Committee with such instructions as to the issuance of a license or further investigation as in his judgment the circumstances may require.** 11.5 Other representation by customhouse brokers. A licensed customhouse broker requires no further enrollment under the regulations in this part for the transaction, within the customs districts in which he is licensed, of any business relating specifically to the Page 26 **For statutory and source citations, see note to § 11.1. |