HQ 223059: Automated Broker Interface Service Bureau; ABI; licensedbroker may operate as service bureau; 19 CFR 143.1

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                            HQ 223059

                          May 20, 1991

ENT-1-01 CO:R:C:E 223059 C

CATEGORY:  Entry/Liquidation

Billy J. Gwin
GEO. S. BUSH & CO., INC.
1400 Exchange Building
821 Second Avenue
Seattle, WA  98104

RE:  Automated Broker Interface Service Bureau; ABI; licensed
broker may operate as service bureau; 19 CFR 143.1

Dear Mr. Gwin:

     This responds to your letter of December 20, 1990,
concerning Customs Regulation 143.1 (19 CFR 143.1).

     After review of the matter, and consultations with our
Office of Automated Commercial Systems and Office of Trade
Operations, we have concluded that a licensed broker can operate
as an ABI service bureau, with the following caveats: 1) The
service bureau cannot engage in Customs business, as defined in
19 U.S.C. 1641(a)(2) and section 111.1(c) of the regulations (19
CFR 111.1(c)), and 2) where a licensed broker operates also as a
service bureau, a broker cannot perform Customs business for a
client who has engaged/hired him only to perform the function of
a service bureau.

     Section 143.1(c) prohibits a service bureau from performing
Customs business  without a broker license.  Where a licensed
broker also performs the business of a service bureau, he wears
two hats and performs two separate and distinct functions.  Where
a licensed broker represents a client in only a service bureau
capacity, the services he can provide for that client are limited
to what is set forth in section 143.1 of the regulations.  Where
a licensed broker represents a client in both a broker and
service bureau capacity, there is no such limitation.

     The Office of Automated Commercial Systems illuminated the
matter as follows (paraphrased from the ACS response):  A
licensed broker operating also as a service bureau can correct
entries filed for clients who have hired him as a broker (or as
both a broker and service bureau) when the broker's filer code is
used.  But clients (importers) who hire a broker only in the
capacity as a service bureau, and who use their own (importer)
filer codes, must correct their own entries.  That is, the
importer/client can transmit ABI data through a broker/service
bureau's software programming, and be subjected to the edits and
validations of the broker's service bureau software, but if the
importer's filer code is used, as would be the case where a
broker/service bureau is hired only in the capacity of a service
bureau, then all corrections or changes to the data must be
performed by the employees of the importer.  Further, any
dealings with Customs regarding classification, value,
admissibility, etc., must be handled by the importer/client, not
the broker acting in his capacity as a service bureau.

     In addition, it was recommended that we advise you of the
fact that service bureaus do not have to be licensed as service
bureaus.  Therefore, advertising your business as a "licensed
service bureau" should be avoided.  The public should not be
confused into thinking that service bureaus must be licensed or
that a licensed bureau is better than one not so advertised. 
This is not to preclude promoting your business as providing the
services of a "licensed broker."

     If you have any additional questions, please contact this
office.

                               Sincerely,




                               William G. Rosoff
                               Chief
                               Entry Rulings Branch