Answer first
Core rule
A person generally needs a customs broker license to transact customs business for others. Section 111.2 lists limited exceptions, including an importer or exporter acting solely on its own account and certain properly supervised broker employees. A national permit issued under §111.19 provides permit authority throughout the customs territory of the United States.
Authority and lookup route
Locate the rule before returning to the facts. Links point to government or official publications.
Reference lookup task
Find the own-account exception and the rule describing the geographic effect of a national permit.
Route: Read §111.2(a)(2)(i), then compare §111.2(b) with §111.19.
Worked example
A U.S. importer prepares and files entries only for merchandise it owns and never acts for another party. Must it obtain a broker license solely for that activity?
- 1Identify that the importer acts only for its own account.
- 2Locate the general license rule in §111.2(a)(1).
- 3Test the facts against the own-account exception in §111.2(a)(2)(i).
- 4Keep the exception narrow; acting for another party would change the result.
Conclusion: No, the own-account activity falls within the stated exception, assuming the facts do not extend beyond it.
Common traps
- Extending the own-account exception to affiliated companies automatically.
- Assuming every broker employee must hold an individual license.
- Confusing the individual license with the national permit.