What "Responsible Supervision and Control" Actually Means Under 19 CFR 111

What "Responsible Supervision and Control" Actually Means Under 19 CFR 111

CBP issued 148% more CF-29s in Q2. Going forward, customs brokers can no longer think of “responsible supervision and control” as a passive affair, merely being available to answer any questions that may arise and leaving the door open just in case. 19 CFR 111 requires a record of who reviewed the entry and the basis for classification. It also demands the version of the rule in effect at the time of the decision. Without that trail, licensed brokers end up unprepared when the CF-29 arrives.

For more context, imagine a CBP officer sitting across the table from you with a piece of paper containing your entries and asking you to explain the content. Would you be able to make that explanation? Would you be able to do it without scrambling?

In this article, we will discuss what responsible supervision and control actually means when customs brokers file entries and what makes for a defensible supervision record.

What 19 CFR 111 Requires When Customs Brokers Conduct Customs Business

19 CFR 111 requires licensed customs brokers, whether a sole proprietorship, partnership, association, or corporation, to be responsible for the supervision and control of all customs business transacted using their license.

But the regulation does not define what "supervision" means at the entry desk, nor does it specify how many customs transactions an individually licensed broker must examine, what format the documentation should take, or how the broker’s employees should be supervised. The rules establish eligibility criteria for brokers but leave day-to-day supervision methods largely to the broker.

"You are required, like anyone you employ or any software you run, to exert responsible supervision and control over those entries as if it were you doing the work," said Hugo Pakula, the CEO of Tru Identity.

Expectations were also heightened by the Department of Homeland Security's publication of the customs broker modernization regulations on October 18, 2022, the final rules updating customs broker regulations. CBP eliminated district permits and created a single national permit authorizing customs brokers to do business anywhere in the customs territory. The broker management branch now requires brokers to designate a knowledgeable point of contact at each processing center, who is available during normal operating hours. Supervision is license-based.

What a Defensible Supervision Process Looks Like at The Entry Desk

"It's like practicing for a test versus actually knowing the material," said Pakula. "You can read all of the training material, and you're ready to take an exam. But actually doing the job is a very different thing." A supervision record is acceptable to CBP if the following can be verified:

Accountability (Who reviewed it?)

The review has to trace back to a specific licensed broker or officer, someone CBP can point to by name. And thus, "The team reviewed it" isn't an answer that holds up in this scenario. That kind of traceability only works if the brokerage has enough licensed staff to actually cover the volume its non-licensed employees are processing - the exact ratio requirement CBP checks for separately

Basis (What classification basis was used?)

All Harmonized Tariff Schedule classification, duty calculation, and any PGA or AD/CVD determination must be supported by documented rationale. So, rather than just providing the code, there should be a justification for it, and brokers should exercise due diligence not only on duties and taxes but also on any obligation owing or other debt reflected in the entry. That's why reasonable care matters. The CBP wants to know whether the decision was made on the spot or whether it was a carryover from a previous entry without review. Access to current CBP issuances supports consistent classification and admissibility decisions. This goes beyond HTS classification, and includes AD/CVD determinations, FTA applicability and eligibility for FTA certification, and applicability of 99/98 codes.

Timing (Which version of the rule applied when the filing was made)

Tariff rules are changed weekly. So, what was correctly classified in March may be misclassified in June due to a proclamation changing Chapter 99 treatment. Timing also depends on the rule version and any relevant Customs and Border Protection guidance in effect on the filing date. The supervision record should include which version of the rule applied at the time of filing and tie the filing to the governing rule set then in effect for border protection requirements.

What a CF-29 Exposes About Customs Business Under Your Broker's License

CF-28 asks importers associated with a particular entry about trade compliance issues, whereas a CF-29 shows what Customs proposes to do with the entries. The difference between the two is that the first is a question while the second is a conclusion.

Failure to respond to a CF-28 may result in immediate CF-29 action. If you don’t meet the deadline, CBP uses the information they have to make a determination and then issues a notice of action, at which point you don’t really have any choice but to pay the bill.

A CF-28 can be issued 14 months after the original filing. However, brokers are exposed when they have to reconstruct the supervisory rationale from memory, old emails, or a spreadsheet that has been updated three times since then.

It doesn't stop at one entry, either, because the CBP is no longer just looking at that one instance anymore. For the CBP, “You've brought this in 100 times already. Let's get you to admit you did it the wrong way. Now we are coming for you for all the other stuff.” That means you have to fix the entire menu because just fixing one would no longer cut it.

How Tru Identity Helps Licensed Brokers Stay Compliant

Customs may assess penalties under 19 U.S.C. 1592 for negligence when the supervision record is thin. Failure to comply may result in CBP disciplinary action, including suspension or revocation of a broker license. CBP now has $3.5 billion to strengthen customs enforcement, and CF-29 issuances jumped 148% in Q2 2026, so you can expect the pace of inquiries to only accelerate.

Tru Identity is the only AI trade compliance platform for customs brokerages selected by CBP to modernize broker management operations alongside how customs entries are built and filed. The platform records every decision with the rule version in effect at the time of filing, helping already licensed broker teams document supervision consistently. This way, when the CF-28 comes months later, the rationale, such as what was decided, why, and on what sources, is already there. Every single point is auditable, and every single decision is based on how you want it to be carried out.

The regulation says "responsible supervision and control." CBP enforcement says "prove it." Whether your record answers that on any given Tuesday, or only after a scramble, is the question worth settling now. Tru enables repeatable, error-free customs entry workflows, making compliance a competitive advantage. Contact us today to get started.

Frequently Asked Questions

Q1. Do customs brokerage need to employ licensed brokers relative to non-licensed staff?

Yes. 19 CFR 111 requires a sufficient number of licensed brokers relative to non-licensed broker employees. The exact ratio depends on the volume and job complexity of customs business conducted, the training provided to staff, and how subordinate tasks are distributed across the operation.

Q2. What is the triennial status report customs brokers must submit to CBP?

Every licensed customs broker must submit a triennial status report to CBP to confirm their license remains active. Brokers must also notify CBP of any changes to their business information. CBP has published a fact sheet with filing instructions for each cycle. Continuing education is required for licensed customs brokers to maintain active status during each triennial period.

Q3.Can a sole proprietorship hold a customs broker's license under 19 CFR 111?

Yes. A sole proprietorship, partnership, association, or corporation can all hold a broker's license. For a sole proprietor, the individual broker operating the business must be individually licensed. The permit application process requires the applicant to show they can exercise responsible supervision and control over all customs business conducted under the license.

Q4. How does the national permit affect customs brokers operating across the customs territory?

The customs broker modernization regulations eliminated district permits and replaced them with a single national permit. Customs brokers can now operate anywhere in the customs territory of the United States. Government agencies, including CBP, expect responsible supervision to cover every region where the broker processes entries in international trade. The scope can vary depending on customs transactions handled at each location.

Q5. What recordkeeping requirements apply to customs brokers under CBP regulations?

Brokers must maintain accurate transaction records for at least five years after entry, and they must execute a power of attorney for each client. This covers all customs business conducted under the broker's license, including classification decisions, duty calculations, correspondence with government agencies, and records tied to the customs power of attorney executed directly with importers. The same direct-execution rule applies when acting for a drawback claimant rather than relying on a freight forwarder. The reasonable care standard means that CBP can review these records at any time and expects documentation to support every filing decision. Payment records should also show when the broker received payment.