Responsible Supervision and Control

Definition

Responsible Supervision and Control (RSC) is the critical regulatory standard that U.S. Customs and Border Protection (CBP) imposes on licensed Customs Brokers. Instituted following the Customs Modernization Act (Mod Act), RSC is the broker’s side of the “Shared Responsibility” model, complementing the importer’s duty of “Reasonable Care.”

This requirement ensures that brokers maintain robust operational integrity and oversee their customs transactions meticulously. If a CBP audit reveals a failure to exercise RSC, the broker is subject to heavy fines based on the extent of non-compliance.

Core Elements of Responsible Supervision

Achieving and maintaining Responsible Supervision and Control requires diligent adherence to specific operational factors outlined by CBP in Title 19 CFR Part 111.1. CBP uses these elements to evaluate whether a broker is properly overseeing their business operations.

Key factors assessed by CBP include:

• The required training and ongoing professional development of broker employees.

• The issuance of clear, written instructions and operational guidelines to staff.

• The volume, complexity, and specific type of business handled by the brokerage.

• The reject rate for the various customs transactions handled by the firm.

• The maintenance of key regulatory resources, including current editions of CBP Regulations, the Harmonized Tariff Schedule of the United States (HTSUS), and recent CBP issuances.

• The availability of an individually licensed broker for necessary employee consultation.

• The frequency of supervisory visits and audits conducted by the individually licensed broker who qualifies the district permit to review customs transactions handled by employees.

• The extent to which the individually licensed broker is actively involved and demonstrates a real interest in the operation of the brokerage.

Expert Advice for Brokers

To proactively satisfy the RSC standard, brokerages must prioritize documented, consistent procedures. It is not enough to simply have a licensed broker on staff; that individual must demonstrate real, provable involvement in the firm's operations and oversight.

Logicmile recommends establishing a formal compliance program that addresses high-risk areas, such as transaction reject rates. Regular, internal audits led by the qualifying licensed broker must be documented thoroughly, proving that supervision is frequent and meaningful, not just theoretical. This ongoing vigilance and documentation are the strongest defenses against CBP penalties and are fundamental to maintaining a compliant brokerage license.