§14916 — Title 49 Transportation | U.S. Code

Summary

Only people who are properly registered as brokers and who meet the required financial security may provide interstate brokerage services. There are three exceptions: certain non-vessel-operating carriers and ocean freight forwarders when they arrange inland transport as part of an international ocean shipment, customs brokers working under a customs bond or handling customs business, and indirect air carriers with a TSA-approved security program when doing air-carrier activities. Anyone who knowingly allows or helps someone break the broker rule can be fined up to $10,000 for each violation and must pay any valid claims by injured parties with no dollar limit. Those penalties and claims can be enforced against the companies involved and against their officers, directors, and principals, who can each be held fully responsible.

Title 49, §14916

Transportation — Source: USLM XML via OLRC

(a)A person may provide interstate brokerage services as a broker only if that person—

(1)is registered under, and in compliance with, section 13904; and

(2)has satisfied the financial security requirements under section 13906.

(b)Subsection (a) shall not apply to—

(1)a non-vessel-operating common carrier (as defined in section 40102 of title 46) or an ocean freight forwarder (as defined in section 40102 of title 46) when arranging for inland transportation as part of an international through movement involving ocean transportation between the United States and a foreign port;

(2)a customs broker licensed in accordance with section 111.2 of title 19, Code of Federal Regulations, only to the extent that the customs broker is engaging in a movement under a customs bond or in a transaction involving customs business, as defined by section 111.1 of title 19, Code of Federal Regulations; or

(3)an indirect air carrier holding a Standard Security Program approved by the Transportation Security Administration, only to the extent that the indirect air carrier is engaging in the activities as an air carrier as defined in section 40102(2) or in the activities defined in section 40102(3).

(c)Any person who knowingly authorizes, consents to, or permits, directly or indirectly, either alone or in conjunction with any other person, a violation of subsection (a) is liable—

(1)to the United States Government for a civil penalty in an amount not to exceed $10,000 for each violation; and

(2)to the injured party for all valid claims incurred without regard to amount.

(d)The liability for civil penalties and for claims under this section for unauthorized brokering shall apply, jointly and severally—

(1)to any corporate entity or partnership involved; and

(2)to the individual officers, directors, and principals of such entities.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2015—Pub. L. 114–94 substituted section symbol for “SEC.” before section designation.

Statutory Notes and Related Subsidiaries

Effective Date

of 2015 AmendmentAmendment by Pub. L. 114–94 effective Oct. 1, 2015, see section 1003 of Pub. L. 114–94, set out as a note under section 5313 of Title 5, Government Organization and Employees.

Effective Date

Section effective Oct. 1, 2012, see section 3(a) of Pub. L. 112–141, set out as an Effective and Termination Dates of 2012 Amendment note under section 101 of Title 23, Highways.

§14916 Unlawful Brokerage Activities

Summary

Title 49, §14916

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Citations & Metadata