Low CHB License Exam Pass Rate, Broker Reg Rewrite Discussed at COAC
The passage rate for for the U.S. Customs and Border Protection license exam in April 2012, is expected to be especially low, according to industry and government sources. One industry source said the passage rate may be as low as 1 percent, though CBP wouldn't confirm that, saying the numbers would be out next week. The issue was briefly addressed during the May 22 Advisory Committee on Commercial Operations (COAC) meeting in Savannah, Ga.
During a presentation on the "Role of the Broker," Robert DeCamp of A.N. Deringer, a member of COAC, noted the low rate, saying he knows it can be improved upon. Al Gina, CBP Assistant Commissioner, said upon hearing the low numbers he immediately thought this pointed to problems with the instructors. Gina described the rate as "truly anomalous" and "we need to look at why the results are the results."
The Role of the Broker COAC Subcommittee's executive summary is (here).
Rewrite of Section 111
The rewrite of the broker regulations in 19 CFR Part 111 will affect a wide range of professions, including brokerage firms, private practice brokers, brokers working for government, etc., and all need to be reached, DeCamp said. The subcommittee is looking forward to taking part in the coming advanced notice of proposed rulemaking (ANPR), he said.
CBP will conduct an intense outreach effort this summer as CBP staff meet with brokers and importers on the regulatory overhaul, said Elan Ryan, acting director-trade facilitation in the CBP Office of International Trade. CBP will hold 2-4 all-day public meetings where it will invite the broker community to provide input. CBP will ask regional and local associations if they would like it conduct a webinar with them to receive feedback that is unique or unusual to their geographic area. CBP will also hold regular webinars throughout the summer for brokers to provide insights, ask questions, and share information that will assist it in understanding the costs and benefits of the proposed changes. CBP is also exploring additional communication avenues within the subcommittee, such as social networking, to announce meetings and webinars, it said.
Through this co-creation effort with the trade, CBP will begin drafting proposed regulatory changes and the economic impact analysis that is required for the regulatory changes to Part 111.
ISA Pre-certification Pilot
CBP will launch a pilot test of the Importer Self-Assessment Pre-Certification Program—or ISAPC—that will allow CBP-certified customs brokers to screen and vet applicants to CBP’s ISA program. Eligible ISA applicants will be approved for the program in 90 to 120 days rather than 9 to 18 months.
CBP will also expand the testing of a streamlined broker licensing process that leverages technology and a redesigned business process. Further expansion of the program, which is being tested at JFK and O'Hare airports, will include Long Beach, Atlanta, Miami, Detroit, Houston, and Dallas.
The CBP Role of the Broker summary is (here).
Core Education vs. Continuing Education
There are two types of education that can help support the role of the broker, said DeCamp. Continuing education would mean CBP licensees would continue to sustain knowledge and stay at the top of their game within the industry. There has been a number of frameworks on how to maintain that through a number of different organizations, he said.
Things like international business and supply chain management are core education subject matter and there exists a hole in the American educational system, he said. An answer to that hole isn't immediately apparent but It's important to continue to look for a solution so the U.S. can remain competitive, he said.
The broker subcommittee has engaged in a collaborative role with several subcommittees, DeCamp said. Collaborative work includes:
- The broker and antidumping subcommittees have mutually discussed means by which enhanced quality may be achieved through the entry process as it relates to the identification and, therefore, compliance with antidumping or countervailing duty orders. The gist of this improvement relates to the updating of system information concerning the application of products falling under an order and thereby ultimately reduce initial entry errors. The broker subcommittee also applauds and supports CBP’s initiative to partner with Commerce by providing clarity on anti dumping matters to CBP import specialists.
- The bond subcommittee and broker subcommittee are in the process of jointly meeting to discuss bond penalties and liquidated damages claims with a view toward their impact to small and medium size enterprises and with a view toward total industry impact. This remains a work in process.