NCBFAA's Sekin to Emphasize Broker Limits, Outline High-Priority Issues in Testimony

U.S. Customs and Border Protection must be aware of the limits of what customs brokers can provide to CBP, though there are several ways brokers can work with CBP to further the importing process, according to written testimony from Darrell Sekin, president of the National Customs Brokers and Forwards Association of America. Sekin is scheduled to testify May 17 before the Ways and Means Trade Subcommittee during a hearing on Supporting Economic Growth and Job Creation through Customs Trade Modernization, Facilitation, and Enforcement.

Brokers are largely limited to information given to them by their clients, the importer, to which brokers must direct their primary loyalty, the testimony said. "A customs broker's understanding of the transaction and knowledge of its specifics is based entirely on the representations of his client -- unless he has good reason to believe otherwise," according to the testimony. Brokers don't "see the goods during their passage in the U.S.; he must reasonably believe what he is told by a client whose integrity is unchallenged," it said. The brokers "works on behalf of the importer who is the party liable for the correctness of the information provided to CBP.

Major issues for NCBFAA include:

Advocacy for a Series of High-Priority Customs Issues

• ACE funding: Construction of ACE is vital to CBP. The Obama Administration's FY2013 budget request of $138 million is inadequate and provides no capacity for continued program development. The Ways and Means Committee should make a strong statement within the House that completion of core functionalities must continue.
• Drawback: The process for crediting exporters of products with import duties they have paid for those products or components is hopelessly complex. NCBFAA has worked with CBP to modernize these processes and the coming customs authorization legislation should include drawback simplification.
• AD/CV Duties: The Ways and Means Committee should codify recommendations from the Commercial Operations Advisory Committee (COAC) to implement a prospective system that would enable CBP to more effectively collect duties.
• Role of the broker: NCBFAA is working with CBP to leverage the knowledge of customs brokers to facilitate trade.
• Court of International Trade: NCBFAA asks the committee to examine ways that the CIT can be empowered to more quickly resolve disputes.
• Other Government Agencies: NCBFAA encourages efforts to expedite enforcement activities from agencies other than CBP, such as the FDA, by using the ACE International Trade Data System (ITDS). NCBFAA is also supportive of continued regulation by CBP, without duplicate regulations at other agencies.
• CBP Field Operations: NCBFAA is supportive of CBP efforts to re-focus attention on the partnership of commercial facilitation with homeland security.

Education and Certification:

• Professionalism of Customs Brokers
  • NCBFAA recognizes the professionalism of customs brokers must be advanced to address the evolution of international commerce. The association is considering a regimen of continuing education to keep credentials in good standing and requirements that brokers acquire practical experience before they are fully licensed.
• Customs Broker Exam
  • NCBFAA has discussed administering the customs broker exams, instead of CBP, similar to how the bar is responsible for testing new lawyers
• Educating CBP
  • NCBFAA is working with CBP on a series of educational seminars for senior customs officials.

There's much room for advantageous collaboration, the testimony says. Ongoing collaborative efforts include:

Customs Broker Responsibilities

NCBFAA is working with CBP to update 19 CFR 111 -- regulations that apply to brokers. Issues being discussed include:

• Clarifying the broker's responsibility to validate new clients
• Modernizing regulations to align with electronic capabilities and business practices
• Participation in the Importer Self-Assessment (ISA) precertification program by reviewing ISA applicant.
• Promote the interests of the broker's small and medium-sized clients who would otherwise qualify as "trusted partners."

Generate Support for New Customs Programs

NCBFAA is working with CBP to educate members on:

• Automated Commercial Environment (ACE)
• Centers for Excellence and Expertise (CEEs)
• Air Cargo Advanced Screening (ACAS)

Email documents@brokerpower.com for a copy of the testimony.