CBP Proposes Rule on Location & Method of Retention of Broker Records
U.S. Customs and Border Protection has issued a proposed rule to amend 19 CFR Parts 111 and 163 regarding customs broker recordkeeping requirements as they pertain to the location and method of record retention.
These amendments serve to (1) modernize the CBP regulations to reflect the automated commercial environment in which most documents are generated, stored and transmitted electronically and to remove duplicative recordkeeping requirements and (2) streamline recordkeeping procedures for brokers who maintain electronic recordkeeping systems.
Comments are due by May 24, 2010.
Brokers Could Store Records Anywhere within U.S. Customs Territory
CBP is proposing to amend 19 CFR 111.23 to permit a licensed customs broker to store records relating to their customs transactions at any location within the customs territory of the U.S.
(19 CFR 111.23 currently states that records must be retained by a broker within the broker district that covers the CBP port to which they relate unless the broker chooses to consolidate records at one or more other locations, and provides advance notice of that consolidation to CBP.)
Records must be available upon request. 19 CFR 111.23 would also be amended to state that the broker's designated recordkeeping contact, identified in the broker's permit application, must make all records available at the broker district that covers the CBP port to which the records relate, within a reasonable period of time from the time of CBP's request.
Certain Brokers Would be Exempt from 120-Day Original Format Recordkeeping Retention Requirement
CBP is proposing to amend 19 CFR 163.5(b)(2)(iii) to provide that the requirement to store entry records in their original format for a prescribed time period (see below) is limited to importers, brokers who are serving as importers of records, and brokers who only maintain paper records.
CBP's proposed rule would exempt brokers who are not serving as the importer of record and who maintain separate electronic methods from the current 120-day original format record retention requirement, so long as they retain all records electronically for 5 years.
(The current recordkeeping provisions in 19 CFR Part 163 require, except in the case of packing lists, entry records to be maintained in their original formats for a period of 120 days from the end of the release or conditional release period, whichever is later, or if a demand for return to Customs custody has been issued, for a period of 120 calendar days either from the date the goods are redelivered or from the date specified in the demands a the latest redelivery date if redelivery has not taken place.)
No exemption for documents required to be maintained as paper records. This exemption would not apply to any document that is required by law to be maintained as a paper record, such as some softwood lumber documents.
CBP contact - Cynthia Whittenburg (202) 863-6512
CBP proposed rule (D/N USCBP-2009-0019, FR Pub 03/23/10) available at http://edocket.access.gpo.gov/2010/pdf/2010-6362.pdf