Sunday, January 8, 2012

Customs Broker License Denial for Poor Credit History

Peter Quinter, Esq.
Hundreds of people apply every year to become a customs broker. Customs brokers are licensed by U.S. Customs and Border Protection (CBP). The process requires passing a rigorous multiple choice examination, and then passing a background investigation.  For many applicants who successfully pass the examination, they are denied a license because the background investigation revealed a poor credit history and rating.

Although the application to be a customs broker is submitted to the local port, the decision letter granting or denying a broker license is issued by Allen Gina, Assistant Commissioner, Office of International Trade, CBP Headquarters in Washington, D.C.  A typical denial letter would state:

After careful evaluation of the information obtained from the background investigation, we must deny your application due to your financial history.
The denial letter always cites the CBP regulation at 19 CFR 111.16 - a failure to establish the business integrity and good character of the applicant.  Fortunately, the letter also cites 19 CFR 111.17 which provides the right of appeal of the denial of the customs broker license.

The appeal must be filed, in writing, and submitted to Mr. Gina no later than 60 days from the date of the denial letter. The appeal must persuasively argue why the applicant has business integrity and good character.  For example, if the applicant went through a divorce, and the former spouse failed to pay certain bills which negatively affected the applicant's credit history and rating, that is an important fact that must be argued, and documented, in the appeal.

There are numerous reasons why CBP may legitimately deny a customs broker license to an applicant who has a spotty financial history. Similarly, there are numerous reasons to explain to CBP that despite what appears to be a questionable financial history, the applicant has business integrity and good character, and should still receive the customs broker license.
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Comments or questions, click below, or contact me directly.
Peter Quinter, Partner in Charge
Customs and International Trade Law Department
(954) 270-1864 or peter.quinter@gray-robinson.com

3 comments:

  1. Hello,

    I'm planning to become a licensed customs broker and will be taking the upcoming exam in October, 2013. I just had a big argument/fight(verbal) with my wife and she said she wants to file for "uncontested divorce" I completely disagreed and told her not to but she's being stubborn about it. I don't have any major issues with my credit history but I'm concerned that this divorce might end up looking bad on my moral character. I don't know what will happen to me for my background check. I was told there is like 6 months cooling period even after the divorce gets processed. Do I must do anything in my power to stop the divorce? Or just because a candidate has divorce history, he/she gets automatically disqualified for license..? Please let me know. My email is beachvoice@gmail.com Thank you.

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  2. I guess the CBP is implementing the rule too tight. Though it is good for the freight industry. Well, what works better will do.

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  3. Hello,
    This blog post is all about the custom clearance.Its a good service.This blog is too good.Thank you..
    Customs Clearance

    ReplyDelete